B. Low cost carriers strategies The LCC yield management differs radically from traditional yield management. It is based on the concept that there is a latent large-price sensitive market, which will travel (or travel by plane) only at a low enough price. (a) No-explicit market segmentation. There is no explicit segmentation or, at least, the segmentation is only applied through time of booking and choice of flight. The passenger who wishes to pay lower prices must book early or on the flights for which there is less demand (b) No-product differentiation. The product is not differentiated and the fences are removed: no Sunday rule, date limits, changes fee, and so on. This means that one-way pricing is possible with the outbound and inbound journey being priced separately but fully combinable. Those factors make the inventory control of LCCs from a technical perspective simpler to manage than Fscs (c) Price versus demand is a continuum function. The key factor in being able to offer low fares is to have low operating costs. However, the LCC fare setting is counter to the traditional model. LCCs modify the selling price of each flight as a function of the departure date. If a price is too low, the flight will fill up early and higher-yielding late-booking business will be turned away on the contrary, if the price is too high, the flight is at risk of departing with empty seats (d) Booking classes. Each flight only has one price available at any point in time and not as many booking classes as the FSC. cost (e) Internet distribution. The passengers purchase via the Internet and have the transparency H who are more price-sensitive can ternct compare prices as a function of date or time of departure. Those choose the lower demand flights,