Wizz Air is a Hungarian low-cost airline that carries millions of people. It was founded by József Váradi who is is also CEO of the company today. The initial strategy involved cheap transportation within Central and Eastern Europe, but their plans and ambitions expanded as a result.

Wizz Air offers multiple ways of getting to another country while keeping travellers’ budgets safe. In addition to the price policy, the company’s focus is also on accessibility and convenience for everyone.

When it comes to the Eastern European aviation market, Wizz Air is the evident leader among other carriers. Their dominating position is secured by the flexibility of booking options, range of prices, and various destinations.

Wizz Air: An Overview

Wizz Air’s history began in 2003 in Hungary. The first flight was from Katowice to London Luton, and their first bases were located in Budapest and Katowice.

Even though the company succeeded initially, it grew even bigger each year. By 2006 it had already carried more than 5 million passengers. And, as we can see now, Wizz Air is one of the most popular low-cost carriers for millions of travellers. The company has fascinating statistics:

• More than 128 destinations

• Served approximately 60 million passengers in 2023

• Over 1100 routes

• Approximately 190 airports.

The well-planned business model in Eastern Europe helps to provide affordable rates while keeping high-level services. Wizz Air identified all crucial moments, analysed dynamics, and organised the staff correctly. The main key points in their business model can be identified as:

• Low-cost offers for each destination

• Absolute absence of business class

• Possibility of choosing what you want to include in your trip and paying for it

• The company offers primary and secondary airports for more choices

• Wizz Air offers services depending on the region and calculates the best routes

• Only modern fleets that are not older than 5 years.

The Eastern European Aviation Market

Eastern Europe constantly evolves, allowing a powerful opportunity to develop a low-cost business further. Basic characteristics of the aviation market:

• The fast-path growth of the aviation industry

• The existence of primary(regional) and secondary airports

• The majority prefers more affordable carriers

• Great importance of seasonal and peak times

• The existence of visa requirements and political considerations.

Some factors have big significance on the strategy of Wizz Air, including:

• Economic factors influence the number of passengers and the overall demand. Eastern Europe is known for having price-conscious travellers who pay attention to booking the most affordable rates. Low-cost offers contribute to fulfilling the desires and bring more income as a result

• Regulatory factors make Europeans’ travel more secure. These are the standards and passengers’ rights that must be complied with. The EU controls the performance of the aircraft, which impacts the aviation industry as a result.

Wizz Air’s Target Passenger Profiles

The affordable prices and hundreds of destinations attract many people each year. The main list of primary passengers of Wizz Air consists of:

• Leisure travellers who chose to spend vacation next to the sea

• Passengers who plan to travel and explore new countries

• Those who visit relatives, friends, or loved ones

• External students

• Workers.

Strategic Analysis of Wizz Air’s Market Position

Wizz Air has many advantages:

• Low-cost model that allows offering cheap seats

• Countless routes and destinations in Europe and beyond

• A well-known brand with a recognisable logo

• Only modern aircraft

• Reducing of CO2 emissions by choosing Airbus A320, A321CEO, and A321NEO

• Many ways to solve any issue, including Wizz Air delay compensation.

As we know, the company can be often compared to Ryanair, which is also a low-cost airline in Europe. However, Wizz Air is famous for having a more concentrated strategy in Eastern Europe. Based on the statistics, it carries more passengers and connects more destinations as a result.

The pricing policy of Wizz Air is lower than other carriers can offer. It makes Wizz Air the best choice for cheap travelling in Eastern Europe. Now, the number of routes is more than 1100 and connects 50 countries worldwide.

Challenges and Opportunities

The aviation industry in Eastern Europe can be characterised as a mix of different economics, regulations, preferences, and types of passengers. The similarities and dissimilarities are dynamic, as many exterior circumstances may occur. Of course, Wizz Air corresponds to all challenges and adjusts their strategy accordingly:

• Wizz Air has to face regulatory hurdles that cause challenges on the national level. These include specific regulations, safety measurements, and other measures, such as those used during COVID-19

• The company must always be active and remind of its brand due to the high level of competition from Ryanair

• Volatile fuel prices cause excessive expenses on the vital part of aviation. For example, Wizz Air declared more than 650 million euros in fuel costs in 2022.

However, Wizz Air has opportunities to grow even bigger:

• There are many small cities and airports yet to be connected with Wizz Air

• Opportunity to extend fleet and expand to new markets

• Increase the presence in all countries of Eastern Europe.

Case Studies

Here are some cases of the best strategic moves of Wizz Air in Eastern Europe. Discover what impact they have:

• The airline company identified a small Tuzla International Airport in Bosnia and Herzegovina as a potential growth opportunity. As a result, there are many flights from and to Tusla. Due to this choice, the airport has become a convenient place to leave and arrive at.

• Wizz Air optimised the route strategy and opened new options such as Warsaw-Barcelona and Krakow-Rome. Opening up more direct routes is easy and it offers more flexibility for the passengers.

• Wizz Air introduced a new service -WIZZ Priority. It allows travellers to bring an additional bag and have a seat earlier.

Conclusion:

Wizz Air is known for being a loyal airline company with a low-cost model business. By having a correct strategy, Wizz Air has secured a top spot on the market for many years and holds it first place with grace. It helps travellers who want to go out and explore new interesting places in Eastern Europe cheaply. Wizz Air shows how it is easy to connect countries and what must be done to achieve this.