Assess the consequences to a business, such as Spirit Airlines, of only selling its tickets online. - Edexcel - A-Level Business - Question 1 - 2017 - Paper 1

For Spirit Airlines, the transition to online-only ticket sales allows them to lower prices for customers or increase their profit margins if ticket prices remain stable. Additionally, the booking process is faster and convenient as customers can book tickets any time of the day, which may enhance sales volume.

Customers may be drawn to Spirit Airlines because they can easily track ticket price changes online, increasing the likelihood of securing the best deal. As a result, this might lead to higher sales for the airline.

As Spirit's customer base becomes more accustomed to online services, the company may benefit from lower operational costs when compared to traditional call centers. However, not all potential customers are comfortable making online purchases, which could limit sales from specific demographic groups, especially those who prefer personal interaction during transactions.

Though online selling has several advantages, it is essential for Spirit Airlines to implement robust back-office support for their online booking system to ensure reliability. Moreover, some customers may prefer dealing with ticket agents directly, especially when seeking clarification on ticket pricing or additional charges, potentially impacting overall sales.

Overall, while the online-only sales approach offers considerable cost advantages and the potential for attracting more customers, Spirit Airlines must also consider the implications of alienating customers who favor traditional purchasing methods. This dual perspective is crucial for a strategic assessment of their market position and operational strategy.