What is a key principle of Frontier's pricing model?

What is a key principle of Frontier's pricing model?

• A. Passengers must pay a flat rate for all services
• B. Passengers pay for additional services upfront
• C. Passengers can only book flights via travel agents
• D. Passengers only pay for what they use

Answer: (D)

The key principle of Frontier's pricing model is that passengers only pay for what they use. This model reflects a philosophy of unbundling services, allowing customers to choose and pay for specific add-on services according to their individual needs and preferences. By implementing this approach, Frontier Airlines offers a lower base fare, with the understanding that additional services—such as baggage, seat selection, and priority boarding—can be purchased as needed. This method empowers passengers to have more control over their overall travel costs, enabling them to customize their travel experience in a way that suits their personal requirements and budget. This pricing strategy contrasts with a flat-rate approach, where all services would be included in a single price, regardless of whether the passenger utilizes them or not. The unbundled model is particularly beneficial in a competitive airline market, as it allows budget-conscious travelers to avoid paying for services they may not need.

The key principle of Frontier's pricing model is that passengers only pay for what they use. This model reflects a philosophy of unbundling services, allowing customers to choose and pay for specific add-on services according to their individual needs and preferences.

By implementing this approach, Frontier Airlines offers a lower base fare, with the understanding that additional services—such as baggage, seat selection, and priority boarding—can be purchased as needed. This method empowers passengers to have more control over their overall travel costs, enabling them to customize their travel experience in a way that suits their personal requirements and budget.

This pricing strategy contrasts with a flat-rate approach, where all services would be included in a single price, regardless of whether the passenger utilizes them or not. The unbundled model is particularly beneficial in a competitive airline market, as it allows budget-conscious travelers to avoid paying for services they may not need.