Cheap flights and their principles - Why are they so cheap?

There are several low cost airlines around the world. However, all differ in their service and what they offer but many of them are following specific principles in order to lower their costs and gain money.

For all those wondering why some airlines are cheaper than others, we present you some of their key principles and we explain how do they manage to offer cheap flight tickets to travelers.

• Standardized fleet: This might include lower training, lower maintenance costs, purchasing many aircrafts in order to achieve a discount.
• Another key principle is to keep only the essential features. Some of these might be reclining seats, pilot auto-throttle and frequent flyer schemes.
• They prefer to use secondary airports that cost less, in order to decrease their landing fees.
• Many low-cost airlines prefer to have many flights per day in order to be as less time on the ground as possible and pay lower airport charges.
• They also achieve to reduce their costs by not having calling centers and are only operating internet websites, where someone can book and customize a flight.
• Also online check in does not only help passengers to save time but at the same time helps companies to reduce the cost of operating desks at the airport.
• Most of these low-cost airlines impose baggage charges. Fewer bags mean faster loading of aircraft. On the other hand, extra luggage means extra revenue.
• Their staff is trained to do multiple jobs. For example, a cabin crew can also engage with checking tickets at the gate or cleaning the aircraft.
• Hedge fuel costs: With no doubt, fuel is expensive thus, they buy it in advance when it is cheaper.
• Extra features and services are charged: Some of them include on-board services, reserved seating, extra baggage, headphones, pillows etc.
• They do not use reserved seating or they just split people in groups. If any passengers want to get a ‘’good’’ seat, they pay an extra amount and they are boarded before others.
• A large number of airlines of this category charge for last minute baggage check-in.
• They are trying to reduce the weight of the aircraft through several tactics. Some of them are less baggage, very little extra fuel etc. 

Also we present you some interesting facts about low-cost airlines:

• easyJet was the first company who started charging for coffee.
• The cheaper the ticket, the less likely it is you'll be flying at a time of day that suits you.
• Ryanair is expecting to carry more than 81,5 million passengers this year.

By: Progress On 04:47

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Top 15 Countries by Most Spending on Tourism

Tourism for many countries is an important aspect and a major source of revenue. Especially for many of them such as Cyprus, Macau, Luxembourg, Bahamas, Italy, Malta and Austria is crucial to gain as much tourists as possible in order to be able to survive financially. At the same time, is also essential to target the right countries that are going to bring to them the most possible revenue as possible. But which tourists seem to spend more money during their holidays?

According to a research conducted by the World Tourism Organization (UNWTO), at number one it’s the Chinese who spend $102 billion on their travels. This can be considered as normal compared to their population. In the second place are the German tourists, who spend almost $84 billion and in the third position come the Americans, who spend $83.7 billion.

Below are the Britons with $52.3 billion, Russians with $42.8 billion, the French with $38.1 billion, Canadians with $35.2 billion the Japanese with $28.1 billion, Australians with $27.6 billion, and Italians with $26.2 billion. Tourists coming from Singapore, Brazil and Belgium seem to spend around $22 billion and then comes Hong Kong and Netherlands with $20.5 and $20.2 respectively!

Emerging Economies

Last few years, Asian markets have achieved to build a really good and strong economy that continues growing. Furthermore, the rapid urbanization and rising disposable incomes in their country explains the fact that Chinese are on the top of the list. What is more, according to UNWTO, relaxation of restrictions on foreign travel and an appreciating Chinese currency have contributed to this increase in tourism.

Also, many of the countries on the list such as Russia and Germany have achieved to increase their share of world tourism spending over the last decade. According to UNTWO Secretary-General Taleb Rifai, ''Emerging economies continue to lead growth in tourism demand. The impressive growth of tourism expenditure from China and Russia reflects the entry into the tourism market of a growing middle class from these countries, which will surely continue to change the map of world tourism.''.

With no doubt, what seems to be true is that China and generally countries with emerging economies are very promising and can bring lots of revenue to those nations which are dependent on tourism.

By: Progress On 01:43

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Bad news for investors and business owners in Cyprus

It's bad news all around for investors and businesses in the Island of Cyprus and we hope that not too many PT's got caught out!

It appears the Government as of Saturday 16th of March will trade the rights of depositors' (both resident and overseas) hard earned savings, to resolve the Banking mess and the excesses of Government expenditure. 

Having just been elected, the new right wing Government wasted no time in striking a deal with the EU and international lenders, which amounts to a Cyprus bailout worth 10 billion euros. To make it happen all depositors have been severely penalized for trusting the banks of Cyprus with their money and the Government to protect their private financial rights. The problem in Cyprus was not caused by the depositors, however this draconian rule will in reality mean the following:

• Depositors with over 100,000 euro in the bank will as of next Tuesday be 10% worse off.
• Depositors with less than 100,000 euro in the bank will as of next Tuesday be 6.7% worse off.

What rights do the people have in Cyprus to their private money - seemingly none! Even the money of the poor, sick, old, frail and vulnerable will be taken. The Cypriot Finance minister that sold out depositors said "I wish I was not the minister to do this". We are certain that most depositors wished that he did not also and one wonders if he took his own money out first!

Cyprus is the 5th country following Greece, Ireland, Portugal and Spain to seek financial help from the EU. The Cyprus bailout is the worst yet for the people and stands in stark contrast from previous aid packages, as unelected (meaning by the people) EU ministers target savers to fix the problems caused by the banks and Government, which the new administration agreed to at the start of their term, giving them 5 years to explain the action. 

This will not doubt put shivers up the spine of all EU residents, as everyone wonders who is next? Cyprus already has a liquidity problem, and one wonders who will ever invest their money in a Cypriot bank again! Trust is so hard to gain and so easy to lose! It will likely take a generation to turn this around. We understand that about half of all depositors are non-resident Russians, so no doubt its a strategical move from the EU, America, Russia and the IMF to stop Russians from depositing in Cyprus, as Cyprus until now held what we believe to be the third largest Russian deposits in the world.  

What appears to be and feels like the daylight robbery of depositors over a bank holiday weekend will raise around 6 billion euros for the Government. This allowed the Government to request a smaller bailout than initially indicated (over 17 billion) and the Government claim its needed to re-capitalize the banks (hit by the debt of restructuring in Greece).

The Dutch Finance Minister, namely Jeroen Dijsselbloem who was deeply involved in the negotiations, actually had the audacity to say "We are not penalizing Cyprus... we are dealing with the problems in Cyprus". In the cold light of day, it is more accurate to say that the EU is both targeting and penalizing the people of Cyprus and all depositors within it banks. Not even an articulate EU Minister can fool the people otherwise. 

Without due notice or civil rights, the Banks will take immediate action to prevent electronic money transfers over the weekend, so if you have money in a Cypriot bank, you can consider up to 10% of it lost! Don't think for a minute you have any rights to recover it either!

What is worse, the Government caved-in by agreeing to increase the corporate tax rate with the promise that the island's debt would fall to 100% of economic output by 2020. This will of course destroy the Islands international business sector. 

Whatever will happen to the economy of Cyprus now? People will leave the Island in the thousands, withdraw all of their assets, overseas businesses and investors alike will steer clear of Cyprus too unless they desire to tap into the country's oil and gas riches in the future, which is an elite few. 

We welcome your comments.

By: Progress On 01:48

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The European Austerity Poem

As a historical European economic crisis unfolds before our very eyes and we see a shift of real power move to Asia, here is a fitting poem that I wrote to capture the light side of this new sickening reality:

Who will tell the Greeks they will have to go Bust?
It seems that the euro is no longer a Must!
Its the EU's austerity answer to the economic disaster,
Tax more of the same and cut everything we Trust.
---
The emotional and complex Italians are beginning to Shrink?
And who will update the Swiss they are no longer in Sync?
Regardless of idealistic desires it all bitterly transpires,
That the once ice cool will not take long to melt and Sink!
---
There's nothing like the sound of the shallow jumping in at the Deep!
As the countries on the edge are beginning to Weep!
Seeking a Political womb or a kind of European counseling room,
In the end they will all contribute more than they get to Keep!
---
Who will advise the EU non-elected they were never in Demand?
And that the power of the vote should be the only Command,
Highly creative expenses and commissions that are senseless,
Yet the public never showed the guts or the stomach to Stand.
---
German collude with northern friends like the voice of Big Brother,
Preaching to the sick, mortally ill and the multiple Other.
Will the British get to escape the European economical rape,
For sure they will nag just like an "I told you so" nagging Mother.
----
So how will the mighty Europe eventually End?
Perhaps begging to the Chinese with an extended Bend!
The concept of bail-out is no longer a lingering doubt,
It boils down to the message they will finally forge to Send.

By: Progress On 00:33

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Swiss Government continue to take measures to maintain a weak Franc

The Swiss National Bank (SNB) has retained a strong stance in terms of its national currency the Franc. The Franc has performed particularly well when pitched against the Euro in recent times, so the SNB has taken measures on a number of occasions to maintain the currency as weak as possible, to stimulate the country’s exports.

The Bank has mainly been focusing on the exchange rate with the Euro, as this region is the one where most Swiss export transactions take place. The price floor in the EUR/CHF currency pair at the present time is seen to be at around the 1.20 mark. Prices have been around this region (with very low volatility levels) for a long time this year.

However, people involved in the market of selling positions have impacted on this price floor, as the Swiss Franc, brief though it was, rose above the 1.20 when up against the Euro. It briefly brought the credibility of the central bank into question and raised the idea that we could see other price floor breaches in the future.

But how can traders foresee and predict future price activity in the EUR/CHF currency pair? A key area to keep your eye open for the direct commentary from the SNB leadership, this could provide some clues on the future policy strategies that could well be enabled.

Perpetual Travellers and peple that wish to hedge or diversify, traditionally hold Swiss Francs as a safe haven currency, especially during difficult economic times. However, the above news may be something to consider or think twice about this strategy. Swiss Francs are certainly stable and cannot be considered risky, but in the light of this news the currency may not hold a strong value like it did in the past, due to the actions of the SNB. Still, many believe that Swiss FRancs are better than euros and safer in the long run than GPB Sterling and U Dollars.

By: Progress On 01:35

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