Wizz Air’s bet on a European traffic rebound could pay dividends for the carrier. Low-cost flights are set to be in demand, and the ultra-low-cost carrier could be a European powerhouse this summer, says GlobalData, a leading data and analytics company.
Wizz Air’s low fares will be in demand as it aims to operate at pre-pandemic capacity throughout August. A live GlobalData poll* highlights low-cost carriers’ strong position to capture pent-up demand, as 52% of global respondents rated price/value as the top factor when selecting an airline brand.
Gus Gardner, Associate Travel and Tourism Analyst at GlobalData, comments: “Wizz Air’s low fares and extensive network will make it one of the most attractive operators this summer. With most European countries allowing unrestricted entry for fully vaccinated travelers, the continent is set for heightened demand as short-haul travel confidence builds, which is great for the European centric airline.”
GlobalData’s latest consumer survey (Q2 2021) has shown only a 2% fall in consumer financial concerns, with 85% of global respondents still ‘extremely’, ‘slightly’, or ‘quite’ concerned about their personal financial position, compared to 87% in the Q1 2021 survey.
Gardner continues: “Across H1 2021, many travelers’ financial positions remained unchanged. Travelers will be more likely to seek the cheapest travel option in the near term to save cash as budgets remain tight. Wizz Air’s strong return will likely bear fruit. By returning to near-full capacity, travelers will be spoilt for choice, and Wizz Air will become a carrier known for its extensive network this summer. Many competitors, including Alitalia and Norwegian Air Shuttle, have reduced flights, and pulled out of markets, leaving gaps that offer Wizz Air a prime opportunity to build brand recognition and become a pandemic winner.”
A live GlobalData poll** has highlighted that an overwhelming number of travelers will travel to the same destinations as before the pandemic (44% of global respondents will do this), which is significantly higher than the 10% opting for a different destination.
Gardner adds: “Recommencing flights to pre-COVID destinations will be vital for Wizz Air to attract passengers. With nearly half of global respondents seeking familiar destinations, demand will be higher for popular destinations. The pandemic has heightened travel nostalgia and reliving an old holiday could be attractive.
“Moreover, familiar destinations may help improve traveler confidence as they know what to expect, especially when factoring in new COVID restrictions. Network uplift should focus on pre-pandemic route pairs, and new routes should remain on the backburner until travel confidence fully returns.”
* Live GlobalData Poll, 631 respondents, live since 19 April 2021
** Live GlobalData Poll, 203 respondents, live since 19 May 2021