New Delhi: Indian airlines are shifting their focus to non-ticketing income, such as charging for meals and excess baggage, to widen profit margins in a highly competitive industry.
They are now pushing add-ons such as food and drink and paid seat selection. Airlines have been keen to boost such "ancillary revenue" to offset cheaper tickets as more operators join the industry. Travel executives said that a New Delhi-Chennai flight can now cost as low as 4,100 rupees ($61), or half the price of three years ago.
Vistara, a joint venture airline between India's Tata Sons and Singapore Airlines, launched a range of ancillary services for its passengers in August. Services include prepaid upgrades to business and premium class and for excess baggage at a discounted rate. According to Sanjiv Kapoor, chief strategy and commercial officer of Vistara, these are "designed to offer customers more choice at attractive rates, and can be purchased with the click of a button."
20/09/16 Nupur Shaw/Nikkei Asian Review
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They are now pushing add-ons such as food and drink and paid seat selection. Airlines have been keen to boost such "ancillary revenue" to offset cheaper tickets as more operators join the industry. Travel executives said that a New Delhi-Chennai flight can now cost as low as 4,100 rupees ($61), or half the price of three years ago.
Vistara, a joint venture airline between India's Tata Sons and Singapore Airlines, launched a range of ancillary services for its passengers in August. Services include prepaid upgrades to business and premium class and for excess baggage at a discounted rate. According to Sanjiv Kapoor, chief strategy and commercial officer of Vistara, these are "designed to offer customers more choice at attractive rates, and can be purchased with the click of a button."
20/09/16 Nupur Shaw/Nikkei Asian Review
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