Low-cost and ultra-low-cost carriers differ in service and business models

Low-cost carriers and ultra-low-cost carriers differ significantly in their business models and passenger experiences. Low-cost carriers, like Southwest Airlines, offer a more comfortable travel experience with perks such as free snacks and checked bags, while ultra-low-cost carriers, like Spirit Airlines, charge for nearly all services. The network structures also vary. Low-cost carriers typically operate from leisure-oriented hubs, while ultra-low-cost carriers use a point-to-point model with more operating bases. This allows ultra-low-cost carriers to offer lower fares by minimizing operational costs. Additionally, low-cost carriers invest in loyalty programs to retain customers, while ultra-low-cost carriers focus on low prices, making loyalty programs less valuable. This distinction affects how each type of airline attracts and maintains its passenger base.