Can low-cost long-haul carriers replace Charter airlines in the long-haul market? A European perspective

Abstract

Charter airlines operating all-inclusive vacation packages on the short-haul European market are quickly being replaced by low-cost carriers. The business model of low-cost carriers is now evolving to capture the long-haul travel segment and consequentially could replace the all-inclusive package holidays provided by the Charter airlines in this market. The research deduces that this will not transpire. The study extrapolates the opinions from experts who resonate that three pivotal cornerstones the differentiate Charter airlines from low-cost long-haul carriers which comprise of its destination expertise, Air Travel Organiser Licence affiliation and its horizontally integrated multifaceted enterprise. A passenger survey directed exclusively at passengers travelling on Charter airlines to long-haul destinations in Latin America found that vacationers aged 56 years and older together with families would not opt to vacation on low-cost long-haul airlines.