Strategic Intelligence: Low Cost Evolution (2025)
Summary
Low cost evolution has changed the way travelers book trips and the business model poses a threat to many different operators. GlobalData forecasts that online travel sales will reach $4.34 trillion by 2028.
Scope
- This report analyzes the key theme of low cost evolution in the travel and tourism sector.
- This report provides an insight into key trends, challenges, and recommendations, as well as providing concrete case studies to help the reader see examples of low cost evolution in action.
- Understand the impact of low cost evolution on the tourism industry, using case studies to help you understand how you can adapt and understand this theme.
- Assess the strategies that companies are adopting to succeed in the low cost evolution space.
- Discover companies that are leading in the space.
- Analyze real-world trends created by integrating low cost evolution across the travel & tourism sector.
- GlobalData’s thematic research ecosystem is a single, integrated global research platform that provides an easy-to-use framework for tracking all themes across all companies in all sectors. It has a proven track record of identifying the important themes early, enabling companies to make the right investments ahead of the competition, and secure that all-important competitive advantage.
- Executive Summary
- Players
- Thematic Briefing
- Defining the low-cost evolution theme
- No-frills service
- Attempt to shape purchasing habits
- Maximize capacity
- Ancillary charges
- Sharing economy
- Asset-light business model
- Custom offerings
- Basic amenities
- Set operations and procedures
- Use of tertiary locations
- Trends
- Technology trends
- Macroeconomic trends
- Regulatory trends
- Industry trends
- Industry Analysis
- Market size and growth forecasts
- Direct bookings are important for both airlines and hotels
- LCCs rank highly in on-time performance, even compared to FSCs
- Impacts
- Increased accessibility to travel
- Rise in travel frequency and volume
- Growth of secondary tourism markets
- Stimulus for economic development
- Shifts in tourism seasonality
- Challenges
- Erosion of cultural identity
- Displacement of local residents
- Economic dependence on mass tourism
- Infrastructure strain
- Unsustainable business practices
- Recommendations
- Foster cultural preservation
- Regulate short-term rentals
- Invest in infrastructure resilience
- Bridge the digital divide
- Introduce environmental levies
- Case Studies
- Jetcost
- Volotea
- RedBus
- Couchsurfing
- Kiwi.com
- Timeline
- Signals
- M&A trends
- Company filing trends
- Value Chain
- Lodging suppliers
- Transportation suppliers
- Intermediaries suppliers
- Companies
- Public companies
- Private companies
- Sector Scorecards
- Airlines sector scorecard
- Who’s who
- Thematic screen
- Valuation screen
- Risk screen
- Glossary
- Further Reading
- GlobalData reports
- Our Thematic Research Methodology
- About GlobalData
- Contact Us
- List of Tables
- Table 1: Technology trends
- Table 2: Macroeconomic trends
- Table 3: Regulatory trends
- Table 4: Industry trends
- Table 5: M&A trends
- Table 6: Public companies
- Table 7: Private companies
- Table 8: Glossary
- Table 9: GlobalData reports
- List of Figures
- Figure 1: Who are the leading players in the low cost evolution theme, and where do they sit in the value chain?
- Figure 2: The transportation, lodging, and intermediaries sectors are driving low cost evolution
- Figure 3: Direct bookings are still important to consumers when booking with both lodging providers and airlines
- Figure 4: Low-cost carriers are a competitive force in the aviation industry
- Figure 5: The low cost evolution story
- Figure 6: Trends in company filings suggest that low-cost evolution is a maturing theme
- Figure 7: The low cost evolution value chain
- Figure 8: The low cost evolution value chain - Lodging suppliers
- Figure 9: The low cost evolution value chain - Transportation suppliers
- Figure 10: The low cost evolution value chain - Intermediaries suppliers
- Figure 11: Who does what in the airlines space?
- Figure 12: Thematic screen
- Figure 13: Valuation screen
- Figure 14: Risk screen
- Figure 15: Our five-step approach for generating a sector scorecard
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