Be ready to spend more this summer as airfares zoom post cancellations
Aparna.Desikan@timesgroup.com
Chennai:21.03.2019
Summer is around the corner and most people will be looking forward to travelling. While it could be relaxing, it may also burn a hole in your pockets. With air fares going up following cancellations by major airlines, be ready to shell out 30% higher on your vacation this season.
An average price increase of 28% for passengers travelling after a week of booking and a 45% rise for same day or next day travel — compared to last year — rates is weighing down travellers, says Balu Ramachandran, head, air and distribution, ClearTrip.
Subsequent to the fare rise the industry has been witnessing since the last month, there is seen to be a average of 10%-20% increase in fares compared to last week. The rise is more acute between major cities and more impact is seenfor last minute bookings (less than 7 days). For instance, Pune-Bangalore last-minute fares are up by 44%, Pune-Mumbai up by 24%, Delhi-Mumbai up by 14% and Mumbai Bangalore up by 30%,”he added. Travel portals attribute cancellation of key carriers — including 60 carriers form Jet Airways, 13 flights from Spice Jet and 20-30 from Indigo — to raise the prices.
Key routes see over a 70% increases in rates. Data from travel portal Ixigo shows a 100% increase in the Delhi-Mumbai last minute flight fare this March. “Demand normalisation after the Holi season will also temporarily stabilise sectoral fares, but not for long as summer travel season is just around the corner,” said Aloke Bajpai, CEO, Ixigo.
Even for travel during April, passengers have to shell about 30% more if tickets are booked on Wednesday, shows data from Yatra.com. However, this has not deterred summer vacations, observe travel portals. “People compensate for the rise in air fare by cutting down on accommodation. The usual growth we see every summer still prevails,” said Sharat Dhall, COO, B2C, Yatra.
Vacationers also move towards train travel following the cancellation. Portals have seen a 15%-20% surge in train searches. “Train searches in February and March saw a spike mostly by leisure travellers given that many airlines cancelled or grounded their aircrafts. Business travellers though will still rely on flights and will also be the ones to be impacted the most by high last minute fares,” added Bajpai of Ixigo.
DAMPENED TRAVEL PLANS?
Aparna.Desikan@timesgroup.com
Chennai:21.03.2019
Summer is around the corner and most people will be looking forward to travelling. While it could be relaxing, it may also burn a hole in your pockets. With air fares going up following cancellations by major airlines, be ready to shell out 30% higher on your vacation this season.
An average price increase of 28% for passengers travelling after a week of booking and a 45% rise for same day or next day travel — compared to last year — rates is weighing down travellers, says Balu Ramachandran, head, air and distribution, ClearTrip.
Subsequent to the fare rise the industry has been witnessing since the last month, there is seen to be a average of 10%-20% increase in fares compared to last week. The rise is more acute between major cities and more impact is seenfor last minute bookings (less than 7 days). For instance, Pune-Bangalore last-minute fares are up by 44%, Pune-Mumbai up by 24%, Delhi-Mumbai up by 14% and Mumbai Bangalore up by 30%,”he added. Travel portals attribute cancellation of key carriers — including 60 carriers form Jet Airways, 13 flights from Spice Jet and 20-30 from Indigo — to raise the prices.
Key routes see over a 70% increases in rates. Data from travel portal Ixigo shows a 100% increase in the Delhi-Mumbai last minute flight fare this March. “Demand normalisation after the Holi season will also temporarily stabilise sectoral fares, but not for long as summer travel season is just around the corner,” said Aloke Bajpai, CEO, Ixigo.
Even for travel during April, passengers have to shell about 30% more if tickets are booked on Wednesday, shows data from Yatra.com. However, this has not deterred summer vacations, observe travel portals. “People compensate for the rise in air fare by cutting down on accommodation. The usual growth we see every summer still prevails,” said Sharat Dhall, COO, B2C, Yatra.
Vacationers also move towards train travel following the cancellation. Portals have seen a 15%-20% surge in train searches. “Train searches in February and March saw a spike mostly by leisure travellers given that many airlines cancelled or grounded their aircrafts. Business travellers though will still rely on flights and will also be the ones to be impacted the most by high last minute fares,” added Bajpai of Ixigo.
DAMPENED TRAVEL PLANS?
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