Low-Cost Carrier (LCC)

A budget airline with a low base fare where many services (baggage, meals, seat selection) are paid separately. The unbundled pricing model means the advertised fare often understates the total cost once a traveller adds the extras a business trip typically requires. Companies weighing LCC options in their travel policy usually need to compare all-in costs, not just the base fare.

The low-cost model is built on efficiency: a single aircraft type, high aircraft utilisation, quick turnarounds, direct online sales and, often, secondary airports with lower fees. Airlines such as Ryanair, easyJet and Air Arabia are well-known examples. Many LCCs operate point-to-point networks and sell mainly through their own websites and apps, although the boundary between low-cost and traditional airlines has blurred as full-service carriers introduce basic fares and LCCs add business-friendly bundles.

For companies, LCCs can offer significant savings on short-haul routes, particularly for day trips or short stays with hand luggage only. However, there are factors to consider: stricter change and refund rules, secondary airports that may be far from the city centre and require extra ground transport, limited loyalty benefits and no lounge access. Comparing the full cost of the journey — including baggage, seats and transfers — is the only way to know whether a low-cost option really saves money. Some LCCs also offer business bundles with flexibility and baggage included, which can make them more competitive for corporate use.

Tumodo's travel policy settings help companies use low-cost options wisely. Companies can define whether fares with or without baggage are allowed, restrict paid seat selection and set the maximum deviation from the lowest price. Car transfers from the airport can be booked in the same trip, and reports show the complete cost of travel, so companies can see the real effect of choosing a low-cost carrier.