Amid a broad shift in network strategy, US discounter Frontier Airlines is embracing changes to its product offerings, including by introducing “transparent pricing” and eliminating most change and cancellation fees.
The move is a major departure from the traditional ultra-low-cost carrier (ULCC) fare model, with the airline embracing a fee structure similar to that of major US airlines.
”Frontier now provides four distinct options – basic, economy, premium and business – each clearly presented at the start of the booking process,” Frontier said on 17 May. “These options are designed to meet various customers’ needs and budgets, offering significant savings and transparent choices for an enhanced travel experience.”
Frontier’s basic option remains in the ULCC mold; passengers purchasing those tickets must still pay fees to check bags and choose seats, while the other tiers have eliminated add-on fees. The airline’s basic-fare flyers could still also be subjected to change fees.
Chief executive Barry Biffle says the sweeping product changes signal the ”beginning of a new era for Frontier”, which earlier this year added a business-class product by guaranteeing open middle seats in the two front rows of all its aircraft.
”No gimmicks, just really low prices and good customer service,” he says.
North American discounters have been struggling to find profitability as popular US vacation destinations have been overcrowded with competing airlines – including major US airlines offering low-cost products of their own. Frontier, JetBlue Airways and Spirit Airlines have all realigned their networks in response to shifting market dynamics.
Frontier’s new pricing scheme is also likely a response to the US Department of Transportation releasing final rules that would protect airline passengers from “surprise airline junk fees”.
”The rule requires airlines and ticket agents to tell consumers upfront what fees they charge for a first or second checked bag, a carry-on bag, and for cancelling or changing a reservation,” the DOT says.
The agency estimates US air travellers will save some $500 million annually from no longer paying “hidden” add-on fees.
The rule requires airlines and ticket agents to tell consumers upfront what fees they charge for a first or second checked bag, a carry-on bag, and for cancelling or changing reservations.
