First buy not best buy in airline tickets

New Delhi:The early travel planner pays less for the aircraft seat. That’s what most airlines tell you with slogans like ‘the earlier you book your air ticket the cheaper deal you get’.
Well the truth is that you can get a cheaper deal if you are a last-minute passenger! As per market researcher PhoCusWright’s report, low-cost carriers (LCCs) in India are not following the traditional air yield management model which follows the principle of ‘the earlier you buy, the cheaper fare you get’.
Around 70% of LCCs capacity is sold in last three days of the departure, making India a unique market where the air yield management systems have failed. The airlines maintain that the dynamic pricing is followed, but owing to overcapacity in the domestic market and consumer behaviour, the yield management systems do not confirm to global standards.
06/02/08 Vishakha Talreja/Economic Times

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Categories: Indian Aviation- In General Feb 2008