Analysis of cost leadership strategy in low cost airlines with deep learning method

All the travels that people make to see different countries, discover new cultures and business relations have contributed to the growth of tourism on a global scale. With this rapid change including the development of air transportation, distances have become less of an issue. It has become the hub of many countries and passengers, it is accessible not only to well-known countries but also to other countries. The airline industry has been affected by deregulation movements and competition has increased with the proliferation of airlines. Airline companies have diversified over time and adopted different business models. The existing models are traditional, low-cost, charter and regional airline business models. Low-cost airline companies, which are the subject of this research, apply the cost leadership strategy to compete in the sector. In this research, various effects of applying low cost business models by airline companies are presented. In addition, differences and similarities between strategies and their effects from social media perceptions are also discussed. The data were compiled in two ways in the research conducted using the mixed method. First of all, the reports published by airline companies were examined by document analysis method. At the same time, sentiment analysis was conducted to determine the perception of airline companies towards cost leadership strategy. Deep learning algorithms (RNN, LSTM, Bi-LSTM, GRU) were used to measure the accuracy of sentiment analysis. Based on the research findings, it has been found that Ryanair, as a low-cost airline, has implemented the cost leadership strategy more accurately in most areas, but the level of satisfaction in perceptions on social media is lower than Pegasus. On the other hand, it has been concluded that Pegasus, has not implemented its cost leadership strategy effectively, despite its high satisfaction rates.