Airlines focus on package holiday trips to drive growth

New Delhi: Trying to cash in on the peak summer travel season, an increasing number of Indian and international airlines are transforming themselves into wholesome travel managers, providing hotel bookings, sight-seeing tours and even local conveyance, both overseas and within the country.
"It provides airlines with a value-added product which guarantees increase in revenues especially in the holiday season. Not just the carriers but the hotels and other partners in the package benefit from the package," Amber Dubey , director, aerospace, for global consultancy firm KPMG said.
Dubey's views are corroborated by Air India, whose senior official with the operations arm said around 20 percent of bookings in the holiday season come through the package services.
"Summer season is one of the busiest travel seasons; so there are assured footfalls. Package services do add 20 percent or more bookings for the entire season," the official said.
According to the official, apart from ordinary vacationers, business travellers globally look forward to the 'one-stop' shop concept like 'dial a holiday' and 'web-based' travel and stay plans.
"Air India had identified the potential in these package services long time back. We were in fact the first airline in India to start it. Internationally this is a well- known and successful revenue model for airlines," said the official, adding that Air India started holiday packages in early 2000s.
27/06/11 Economic Times

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Categories: Indian Aviation- In General Jun 2011