Tuesday, November 27, 2018

Why IndiGo and SpiceJet are charging passengers for selecting seats during web check-in, explained

The decision of IndiGo, India’s largest airline, to charge passengers who check in online for seat selection, triggered a storm of protests on social media. This pushed the airline to issue a clarification, which was anything but.

IndiGo said some seats may be available for free depending on market dynamics. Here is what it could mean. Say, only 10 seats are free in a flight and all the ten have been taken by passengers who checked in on the web. The next passenger who checked in on the web will have to pay up for selecting a seat.

IndiGo’s decision, besides causing consternation among passengers, also created confusion. IndiGo and SpiceJet, which also charges for seat selection during web check-in, are low-cost, or no-frills, airlines (LCCs). They compete among themselves and full-service airlines such as Air India, Jet Airways and Vistara. LCCs are known to encourage passengers to check in online so that they can reduce the number of employees at airports.

So why did IndiGo still launch an action that effectively will push people to queue up at airport counters and potentially delay boarding? Remember, IndiGo prides itself at punctuality.

The cornerstone of the strategy of LCCs is to offer tickets at low prices (though these days, LCCs are known to charge as much or even more than their full-service rivals). To keep ticket prices low, LCCs do two things.
27/11/18 Binoy Prabhakar/CNBC TV18
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