Flying is definitely a high-cost activity for travelers. However, there are some budget airlines that allow you to travel for less than 10 euros. How is that possible?
In this fascinating video, we will see how budget airlines are able to cut costs dramatically.
How do budget airlines work?
Wendover Productions, a Youtube channel, posted this incredibly informative video that explains how airlines like easyJet and Ryanair can provide much cheaper services.
Being frequent travelers and digital nomads, we are always moving from one place to another. Previously, we have discussed many ways to cut down our travel costs. If we can considerably minimize our flying expenses, wouldn’t that make our travel much convenient and easy on the pocket? Therefore, you must watch this video to determine why these flights are relatively cheaper than traditional airlines.
Pro-tip: Scan the sky for cheap flights with SkyScanner!
(Picture above: taken by us, at Dubai Aiport, flying with Transavia)
Economies of scale
One of the important factors contributing to the low costs of these budget airlines is bulk orders. After 9/11, air travel faced a steady decline. But, budget airlines like Ryan Air were thriving. They ordered 151 planes in a bulk order and availed a massive discount on both the huge order and low industry prices. This is called economies of scale.
In fact, these new planes were one of the most efficient aircraft in the world. Therefore, when they were being used, they were consuming fewer amounts of fuel. Hence, their main cost saw a significant downward shift. If you haven’t watched the video yet, you are missing out on some of the critical pieces of information. You will understand where to spend your money and where to save it. The competition amongst airlines is benefitting travelers like us.
There has never been a better time to go on a journey and marvel at the beauty of our world. So, make a plan and have fun! The world is ready to be explored!
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