The advantage of 'low cost' during recession

Low cost carriers are better placed to ride the recessionary times as Business customers turn price sensitive. Take the Tourism Industry for example. Businesses are looking for ways to reduce their employee travel and lodging costs. And the only answer to that is either cut travel or travel and stay cheap. Cutting travel may not be feasible so the way out is, travel and lodge cheap. The answer to that is, Low-cost Carriers and Budget Hotels.

The World Travel Market 2008 report, conducted by Euromonitor International, said that budget carriers and hotels could expand their share of the business travel market as companies look to tighten their belts as many countries head into recession.