Radical approach to low-fares (Skybus)

Attracting media coverage for some time now with its absurdly low fares($10 one way?!) and no-frills proposition, Skybus is all set to relaunch in the US on May 22nd. Skybus’s stategy is based on the business model of European price-warriors like Ryan Airlines.

While low, low fares is music to most customers, US passengers have a below average tolerance for sloppy service and poor on-time performance. Low fares are quickly forgotten and counteracted by waiting in long lines, being stranded for hours or not having a # to call. A satisfied customer in the US is someone who paid low fares and got from point A-B without hiccups. Skybus’s biggest challenge will be customer-service in an industry notoriously unpopular with travelers!

Published by

Vijay Dandapani

Co-founder and president of a New York based hotel company for 24 years. Grew the firm to five hotels in Manhattan and also developed a greenfield project at MacArthur airport, New York. Speaker at numerous prestigious forums including Economy Hotels World Asia, Lodging Conference, NYU, Columbia University Real Estate Roundtable, Baruch College's Zicklin School and ALIS. President and ceo of New York City Hotel Association since January 2017.

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