Mumbai: Airfares for the upcoming festival season starting October have inched up from their lows in September and are also higher than the same time last year, said airline and travel company executives. But a creeping slowdown in demand for travel will keep the fares reined in compared with the high levels of April-June when the grounding of Jet Airways led to a capacity shortage that set ticket prices soaring, they said.
“Year on year, the current bookings for this year’s travel during the festive season (Diwali + Dusshera) is about 6% higher than last year,” said Balu Ramachandran, head of air travel business at travel portal Cleartrip.
A spokesperson at Makemytrip said the portal’s data shows a 5% increase in travel bookings as well as fares for the Diwali season.
But airline executives sounded less optimistic. “I am seeing a direct correlation between fares and loads/bookings,” said a senior airline executive.
“For those who have raised fares, bookings have dropped. For those that have kept fares low, bookings may be higher but still not higher in revenue terms. I see an overall weakening of revenue environment compared with the April-June period,” he said.
19/09/19 Anirban Chowdhury/Economic Times
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“Year on year, the current bookings for this year’s travel during the festive season (Diwali + Dusshera) is about 6% higher than last year,” said Balu Ramachandran, head of air travel business at travel portal Cleartrip.
A spokesperson at Makemytrip said the portal’s data shows a 5% increase in travel bookings as well as fares for the Diwali season.
But airline executives sounded less optimistic. “I am seeing a direct correlation between fares and loads/bookings,” said a senior airline executive.
“For those who have raised fares, bookings have dropped. For those that have kept fares low, bookings may be higher but still not higher in revenue terms. I see an overall weakening of revenue environment compared with the April-June period,” he said.
19/09/19 Anirban Chowdhury/Economic Times
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