Will low-cost brands be more resilient against COVID-19? The case from Spirit Airlines

Spirit Airlines, the air carrier, believes that its low-cost business model could be a benefit at a time of crisis, such as the spread of COVID-19.

Why it matters

During times of crisis, such as the spread of COVID-19, consumers often reduce their discretionary expenditure in favor of saving resources. As a result, low-cost brands are often positioned to take advantage of any disruption in normal patterns of behavior.


  • Brands may want to consider launching lower-cost brands and services at times when shoppers are less willing to spend.
  • Cutting marketing budgets is tempting in the short term, but typically has damaging outcomes for brands in the long term.
  • Customer service remains vital even as revenues decline and consumer spending slows, as shoppers often punish brands...

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