With over 30 years of travel experience, Tom Spagnola is currently the Senior Vice President of Supplier Relations for CheapOair, overseeing trend forecasting, industry changes and more.

Tom is heavily involved in leading and creating a culture of continuous business improvement, implementing and creating innovative client-centric solutions.

He was an innovator in the airline consolidator business and started one of the first companies that related directly to airline consolidation. As CheapOair’s Senior Vice President of Supplier Relations, Tom is very instrumental in unique supplier negotiations and creating lasting relationships with a variety of travel suppliers. As a seasoned business executive, he is especially skilled in developing strategic plans, building top-producing business relationships in the travel industry, using all facets of the industry to grow successful businesses. Tom attended Pierce College in Southern California.

Q: How are discounted programs affecting the airline industry? 

A: This is an overall positive evolution for customers searching for low airfares. It will increase competition is key markets and both United Airlines and American Airlines will continue to add new markets throughout 2017.

Competition amongst the domestic carriers with the basic economy airfares continue to drive the fares, which is the main demand for most travelers.

Q: Why do you think more airlines are jumping on board? 

A: The success of the LCC model is proving to be very successful as both the domestic and international regions and markets are simply price driven. The increase in seat capacity with more fuel-efficient airplanes  that can increase the number of seats on an aircraft at an even lower cost as compared to older airplanes. It is simply the supply and demand. Customers are becoming much more knowledgeable and understanding the basic fares offered in the industry.

Q: How do discounted programs change the customer experience? 

A: The restrictions and terms and conditions of these basic fares will change or at least evolve how a passenger travels based on the low fares. There will be many more items to consider when purchasing airline tickets. It is now more critical than ever for consumers looking to find the low fares to determine if the low fare fits their travel needs and what the benefits and restrictions are.  There are differences with each airline based on costs and add-on’s that are related to the basic fares. The consumer needs to research what they are actually purchasing.

Q: How will smaller airlines be affected? 

A: The smaller carriers will now have to compete more heavily against larger carriers that may have more seats to sell in similar markets. Each airline has its’ own strategy on how they will attract consumers to stay as either a loyal customer or simply as a price-driven market.

Q: What challenges or benefits does this signal for the airline industry? 

A: The challenge for the airlines is reduction in yield with an average cost per ticket in markets that competitive between the LCC’s and now with the major carriers coming into those same markets.

Customer satisfaction could be impacted at least initially due to the lack of understanding of what the basic economy fares rules and restrictions are. Some of the current LCC’s have a customer base that has experienced a previous trip getting to know the rules and restrictions of those carriers.  There will be a learning curve and some initial growing pains for consumers that have never purchased a basic fare in the past.

The benefit is the opportunity for an airline to attract a new consumer that typically may not have flown on another carrier that can now establish a new loyal customer that will consider booking exclusively with that new airline or staying within the alliance of their partners for future travel.

Q: Any other trends you would predict for the airline industry this year? 

A: We are expecting an increase of new ancillary products to be launched by the airlines and the leader in ancillary content, CheapOair.com.

Consumers are feeling confident about job security so their discretionary income will be allocated for travel.

Mobile bookings and mobile devices will show the largest growth of percentage increase of bookings in 2017. Millennial travel will start to have a major impact on how airline tickets and travel is booked.

There are nothing but positive signs for 2017. Fuel is still very low, the U.S. dollar is strong in many global regions and seat capacity will continue to help consumers attract even lower airfares in 2017.