Wednesday, November 23, 2011

Discount on return trips fetching money for airlines

New Delhi: Amid a fierce competition to woo passengers, the country’s funds-strapped airlines are earning rich dividends from cash discounts on return tickets. For, they are offering 5 to 20 per cent discounts on key routes, if you book return tickets with the same carrier.
Yatra.com estimates that such discounts have led to some 20 per cent increase in return-ticket bookings with the same airline. “Earlier, return bookings with the same airlines were much less compared to normal bookings,” says Sabina Chopra, co-founder of the online portal.
MakeMyTrip.Com, another such travel website, says the increase in the overall return ticket bookings has been around 10 per cent in the last six months. “This is because of cash discounts being offered for booking return rickets,” notes Keyur Joshi, its co-founder and chief operating officer. Airline companies too acknowledge a the role of the discount offeres in the rise in return-ticket bookings. “We are offering discounts on tickets that are a part of the fare schemes,” points out an airline executive. “This is like incentivising passengers to flying back in our airline. It has paid for us.”
23/11/11 Mihir Mishra/Business Standard
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