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Investing.com -- A former Senior Network Development Manager at Wizz Air has provided insight to In Practise on the ultra-low-cost carrier’s (ULCC) pricing strategy and how it defends its market share on various routes.
The former manager highlighted the importance of capacity, seats, and flights in the market, using the Budapest to Barcelona route as an example. Wizz Air operates 14 flights a week on this route, where Ryanair is also a competitor. The manager explained that having more flights and seats improves Wizz Air’s pricing position against competitors.
For instance, if Wizz Air has 14 weekly frequencies and a competitor has only three, Wizz Air can schedule flights at similar times or close to their competitor’s, offering discounts to attract customers. The remaining 11 flights not covered by the competitor can be sold at full fare without discounts.
The former manager noted that in this scenario, Wizz Air competes on only three out of 14 flights, while the competitor has to compete on 100% of their capacity. This illustrates the pricing position versus relative market share strategy that Wizz Air employs.
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