BECAUSE Filipinos are price-sensitive, low cost carriers in the country continue to earn high revenues in the airline industry, an official of the Civil Aeronautics Board (CAB) said on Monday, March 11.
Lawyer Carmelo Arcilla, CAB executive director, said low cost carriers (LCC) in the country has the biggest penetration in the market.
"The global penetration of LCCs is 31 percent but in the Philippines, in domestic, it's 64 percent penetration while international is at 32 percent. The Philippines is only second to India in being the most attractive to the LCC markets," he said in an interview during a Routes Asia 2019 session.
Arcilla said low fare promos are popular among travelers in the country so LCCs have the advantage in luring in passengers compared to high cost ones.
"Filipinos are price sensitive so the LCCs are able to stimulate traffic. We have so many first time travelers because of the LCCs," he said. (JOB)