“We must continue investing in our flight content, specifically low-cost”
European-based agency Alternative Airlines recently unveiled plans to accelerate growth into other regions through their collaboration with Atlas, an enabler of global low-cost carrier (LCC) content.
For context, Atlas is a travel tech company that focuses on air content enablement through data-led insights. Its Air Travel Retailing and Information Platform (ATRIP) is powered by cloud computing, machine learning and AI architecture.
With China – Asia’s last major market with stringent travel restrictions – announcing the reopening of borders this year, it’s clear that Asia is now in full recovery mode and is presenting opportunities for expansion to travel players around the globe.
“We have enjoyed over 600% revenue growth over the past two years”, says Sam Argyle, managing director at Alternative Airlines. “To boost this further, we must continue investing in our flight content, specifically low-cost. We believe access to Asia and the Gulf Cooperation Council (GCC) markets will be key enablers. The breadth of global LCC content that Atlas provides will help drive our expansion across these regions.”
According to Atlas’ analysis, global low-cost carrier seat capacity grew by 56% between 2020 and 2022, compared with non-LCC carriers which only grew 42%. In 2020, LCCs had 43% of overall air passenger capacity and this grew to 45% by the end of 2022. This is based on the OAG Capacity Data from 30 December 2022 report (analysis conducted in January 2023).
Atlas CEO, Mary Li, explained, “The low-cost model fared better during the disruption of the past few years. Many LCCs gained market share, driving industry recovery and enhancing traveler loyalty. Yet, many travel sellers still don’t realize the scale of the LCC opportunity so this provides Alternative Airlines with a first mover opportunity in a lot of our markets.”
It’s no secret that despite a looming recession in some parts of the world and a shaky state of global markers, pent-up demand for travel and exploration is still a top priority for many. “Revenge travel”, as they say, is in full effect.
Atlas believes travelers will be looking for lower-cost options. The company also predicts that LCCs will continue their growth trajectory during and well beyond 2023. Riding that wave, for Alternative Airlines, means expansion into new markets.
Based on Atlas’ case study, the logistics and deeper strategy of the partnership make sense. While headquartered in Singapore, Atlas also boasts 100% LCC coverage across the GCC. Meanwhile, Alternative Airlines has also benefited from Atlas’ content offering in the agency’s home market, Europe. It’s worth mentioning that Alternative Airlines has seen tremendous growth from £9m to £64m between 2020 – 2022 and is now focusing on the growth opportunity of LCCs in new regions to significantly increase their share of bookings.
By leveraging the 200 LCCs that are bookable via ATRIP, Alternative Airlines will expand their customer base by offering more choice to more customers.
Ambitions are high on both sides with this deal. “We look forward to achieving above and beyond our initial growth forecast”, added Argyle.
