What LCC means
Low-cost carriers differ in detail, but they share a focus on cost discipline. Industry analysts at OAG list common traits: a single aircraft family, a single-class cabin, unbundled fees, point-to-point routes often using secondary airports, and a heavy reliance on direct sales. ICAO notes that LCC business models vary and can include hub-and-spoke, point-to-point or hybrid networks.
The segment is large. ICAO reported that LCCs carried 984 million passengers in 2015, 28% of the world's scheduled passengers. OAG put South Asia, including India, as the region with the highest penetration, with LCCs operating 63% of seats in the 12 months to August 2023.
Distribution is where LCCs matter most to travel agencies. Many built their model around avoiding GDS fees and selling direct, so their fares are often not filed through ATPCO and may not appear in a standard GDS display. Agencies reach LCC content through airline agent portals, direct connections to airline APIs, aggregators that bundle many LCC connections, and, for some carriers, the GDS itself. Many LCCs run on platforms such as Navitaire, which describes itself as the platform that launched the low-cost carrier industry.
The line between LCCs and full-service airlines has blurred. Legacy carriers now sell unbundled fares, while some LCCs add premium seating and GDS distribution.
How LCC works
From an agency's point of view, booking an LCC usually means connecting to the airline's own retailing system rather than to filed fares.
- Choose an access routeThe agency decides whether to use the airline's agent portal, a direct API, an aggregator or, where offered, a GDS connection.
- Shop live pricesFares come straight from the airline's system and change often, so prices are requested in real time for each search.
- Add ancillariesBags, seats, meals and fare bundles are selected and priced as separate items or as part of a bundle.
- Pay and confirmPayment is often taken by card or prepaid deposit rather than through BSP, and the airline returns a booking reference.
- Service the bookingChanges and cancellations follow the LCC's own rules and are usually made through the same channel used to book.
LCC in practice
Ryanair and GDSs: PhocusWire reported that Ryanair, which had sold only through its own channels for about ten years, agreed to make its fares available to agents through Travelport, with Travelport stating that GDS bookings would carry no surcharge.
Southwest Airlines: on 26 July 2021 Southwest announced that its flights were for sale in Sabre's GDS, giving it what it called an industry-standard level of participation across Sabre, Travelport and Amadeus.
Agency workflow (illustrative): a travel agency in Dhaka books a regional LCC through an aggregator API. It sells the fare with one checked bag added, pays from a prepaid airline deposit and receives the airline's six-character booking reference, with no IATA ticket number issued.
Who uses it
Advantages and limitations
Advantages
- Low base fares open markets to price-sensitive travellers and help agencies win short-haul sales.
- Unbundled pricing lets travellers and agents pay only for the services actually needed.
- Direct APIs and aggregators give agencies live LCC prices without relying only on GDS displays.
Limitations
- LCC content may be missing from standard GDS displays, so agencies need extra connections.
- Each LCC has its own booking, payment and change rules, which adds servicing work.
- Many LCCs do not interline, so connections between separate LCC bookings are at the traveller's risk.
Frequently asked questions about LCC
Can travel agents book low-cost carriers?
Yes, in most cases. Agents can usually book LCCs through the airline's agent portal, a direct API, an LCC aggregator or, for some airlines, a GDS. Access terms vary, and a few carriers restrict or discourage third-party sales, so agencies should check each airline's current policy and payment options.
Are low-cost carrier fares in the GDS?
Some are, many are not. Several LCCs sell only through their own systems, while others distribute through one or more GDSs. Southwest, for example, announced in July 2021 that its fares were sold through Sabre, Travelport and Amadeus. Where an LCC is in a GDS, the content and servicing available may still be narrower than through its own channels.
What is the difference between an LCC and a full-service carrier?
A full-service carrier usually includes more in the fare, such as bags or meals, offers several cabins, connects passengers through hubs and sells widely through agencies. An LCC strips the fare back, charges separately for extras and focuses on direct sales. Many airlines now mix features of both, often called hybrid carriers.
Why do some LCCs avoid GDS distribution?
GDS distribution involves booking fees and technical work, and LCCs are built to keep costs low. Selling direct also lets them control pricing, sell extras and own the customer relationship. Some LCCs have still joined GDSs to reach corporate travellers and travel management companies.
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