Spirit Airlines matures: new strategy with WiFi, image change

The largest US ULCC, Spirit Airlines, was a forerunner in product unbundling, introducing the first checked bag charges in the country during 2007. Spirit's moves propelled the US industry into offering more à la carte pricing and a focus on generating significant ancillary revenue. In the ensuing years, Spirit pushed the boundaries of product unbundling, reflected in its charge for printed boarding passes at the airport.

But in late 2017, as the basic economy fares introduced by American, Delta and United were rolled out in full force, Spirit opted to create a bundled fare product, which was a major driver of the airline's non-ticket revenue improvement in 1Q2018. Spirit is working to develop an e-commerce strategy to become a retailer, and the bundled fare options are one pillar of Spirit's merchandising evolution.

Spirit has also opted to join the ranks of most US airlines and offer WiFi to its passengers, which will result in the airline becoming the first US ULCC to offer inflight connectivity. This move marks a pivot by Spirit to shore up customer sentiment for the company as the airline works to change its image in the US marketplace.