Lower air fares are here to stay

According to Dhruv Shringi, CEO and co-founder, yatra.com: “Lower air fares are here to stay, for this year at least. To get the volumes, fares have to be in the Rs 3,000-3,500 range, and that is starting to happen. Also, in 2009, we will see surcharges being lowered and extra taxes being waived.”
The Rs 200-400 shaved off the fuel surcharge, the pruning of base fares by 20-80% and a free or discounted in-flight menu on even the no-frills airlines make for excellent news. You can maximise these gains by following this comprehensive guide to flying smart.
There are travellers who swear that last-minute booking gets you the best deal. Experts, however, disagree. They say that with airlines restarting the zero fare concept, it pays to book early. Airlines offer a better deal to early birds-apex or advance purchase fares in industryspeak- because it helps them to manage their inventories better.
Says Vikas Jawa, director, zoomtra.com, a travel search engine: “If airlines were to lower fares just before flight time, there would be a flood of people at the last minute. But airlines need an accurate estimate of the number of people and amount of baggage on a flight so that they can load the proper amount of fuel, meals and beverages. Hence, booking early is beneficial for both the airlines and the passengers.”
In fact, if you book late, you may have to shell out a higher price. Says Michael Burke, general manager, Virgin Atlantic India: “Last-minute bookings typically end up increasing your total costs.” That's not to say that you'll never get a good deal on a last-minute booking. It's a gamble and you can lose if the load factor of the flight is good. An impromptu survey conclusively puts this debate to rest.
24/02/09 MoneyToday.in/Sify

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Categories: Indian Aviation- In General Feb 2009