Summer vacation is the peak season that travel industry looks forward to every year as it can do brisk business and cash in on increasing demand. It is the time when parents with children getting school holidays, look forward to embarking on leisure journeys. However, the turbulence in the aviation industry with major airlines like state-owned Air India, Jet Airways and Indigo facing one crisis or the other, has put travelers in a tight spot. The Jet Airways bail-out plan from financial crisis along with Indigo airlines which informs to continue recruiting expats and out-of-job pilots, is a positive sign for air fares to stabilise by next month end, which might result in a greater number of flights in the air.
"Right now, the situation with domestic airline industry is that the prices will increase, and the time has come when everyone has woken up to the fact that airlines cannot survive making such big losses. They will have to increase the fare to cover the loss in revenue. That is the trend right now. Besides, the demand for flight ticket from travelers is not going to go down. People are still going to travel as they can afford to pay more," says a representative of a travel body.
Speaking with The Hans India, Vijay Mohan Raj, Managing Director, Sameera Travels and International Director, Skal International, says, "The competition between airlines has led to price war. They have not been fixing the prices in the right manner. The range of fares for a flight route filed by airlines with the DGCA is Rs 3,000 to Rs 25,000. I know of a person who bought a ticket on Vistara for Rs 21,000 which was sold a week back for Rs 5,000." Advertise With Us According to him, "the biggest culprit here is the online travel agencies (OTAs) which provide discounts on air tickets under deals with credit card providers and others. This increases the competition further to provide discounted fare, leading to losses for airlines."
30/03/19 Divya Rao/Hans India
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"Right now, the situation with domestic airline industry is that the prices will increase, and the time has come when everyone has woken up to the fact that airlines cannot survive making such big losses. They will have to increase the fare to cover the loss in revenue. That is the trend right now. Besides, the demand for flight ticket from travelers is not going to go down. People are still going to travel as they can afford to pay more," says a representative of a travel body.
Speaking with The Hans India, Vijay Mohan Raj, Managing Director, Sameera Travels and International Director, Skal International, says, "The competition between airlines has led to price war. They have not been fixing the prices in the right manner. The range of fares for a flight route filed by airlines with the DGCA is Rs 3,000 to Rs 25,000. I know of a person who bought a ticket on Vistara for Rs 21,000 which was sold a week back for Rs 5,000." Advertise With Us According to him, "the biggest culprit here is the online travel agencies (OTAs) which provide discounts on air tickets under deals with credit card providers and others. This increases the competition further to provide discounted fare, leading to losses for airlines."
30/03/19 Divya Rao/Hans India
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