Volaris: How Can SMEs Reduce Business Travel Costs?

The Mexican airline corporate market is shifting its focus. For decades, business travel was dominated by large corporations and traditional schemes operated through specialized Travel Management Companies (TMCs). However, the growth of the Mexican business ecosystem is forcing a reconsideration of this model.

For Volaris, the next expansion cycle no longer depends solely on leisure travelers or those visiting family, but on a historically underserved segment: small and medium-sized enterprises (SMEs). This strategy aligns with the country’s structural reality. In Mexico, smaller economic units predominate: micro-enterprises represent 95.5% of the total, and together with SMEs, they constitute over 99% of the national business fabric. In this context, air connectivity is positioned as a productivity tool, not just a mobility service.

The Business Niche Left Out by Major Agencies

For years, corporate travel was designed around companies with high purchasing volumes, centralized policies, and global contracts. This model excluded thousands of regional companies that require frequent mobility but have more flexible financial structures. For Volaris’s market development team, this gap represents a growth opportunity.

“Corporate business wasn’t our strength, but we’ve strengthened our corporate route, we’re understanding it, we’re learning a bit more,” explained , the company’s Market Development Manager.

The financial logic behind this move is clear: if SMEs operate with tighter margins, reducing downtime and travel costs can become a competitive advantage.

Operational Flexibility for Small and Medium-Sized Enterprises

The strategy involves adapting traditional ultra-low-cost model attributes to the corporate environment. This means allowing companies to pay only for the services they need, maintaining competitive fares, and eliminating costs associated with the traditional corporate model. The proposal aims to address needs distinct from the classic executive traveler, such as:

• Inter-city travel between mid-sized cities
• Short-duration technical trips
• Regional commercial visits
• Operational supervision
• Mobility between industrial hubs

The economic rationale behind this initiative is evident: in an environment where time is a strategic asset, reducing layovers, connections, and operational costs can generate real efficiencies for expanding businesses.

Corporate Decentralization and Cost Competitiveness

The model also reflects a geographic transformation within the country. With the growth of industrial hubs outside the capital—particularly in the Bajío, northern, and western regions—companies require direct connections that eliminate operational dependence on major traditional airports.

Galaviz summarizes this vision: “We want to create a product that reaches that segment of small and medium-sized enterprises, allowing them to travel with us much more efficiently… everything that is small or national is where we are focused and where we are trying to reach them.”

Under this logic, air travel begins to compete not only against other airlines but also against hidden business costs: additional hotel nights, unproductive workdays, operational wear and tear, and the loss of commercial opportunities.

The New Growth Battle: Filling Seats During Off-Peak Seasons

In addition to additional revenue, the SME market offers a strategic advantage for the airline: reducing seasonality. While tourism concentrates demand during holidays and peak seasons, business travel tends to remain constant throughout the year.

For a low-cost airline, achieving a balanced mix of leisure and corporate passengers improves load factors and generates greater revenue stability. The thesis is that the next stage of growth will depend not only on passenger volume but also on capturing segments with operational recurrence.

This article first appeared on Líder Empresarial.