HOW TO GET THE BEST AIRLINE DEALS?
Domestic flyers need to factor in
several things. First, they need to understand that these promotional offers
are not going to be there forever. They should be utilised whenever they are
available. “The all inclusive promotional offers of `500 and `990, will not
continue because they are not sustainable rates,“ says Samyukth Sridharan,
chief operating officer, Cleartrip.com. AirAsia's GoaBangalore air fair has
already gone up to `1,699 from its promotional fare of `990.
Second, the fall in air fare is not
simply because of AirAsia's predatory introductory offers. In fact, because of
addition of capacity in the aviation sector, prices will not go back to
previous levels. “Airlines have indicated that rates will be around 30% lower
than the prevailing rates,“ says Sharat Dhall, president, Yatra.com. If that
happens, it will indeed be `achhe din' for domestic travellers.
Third, the new player is helping
break the existing cartel in the aviation sector. “Competition came down
drastically post Air Deccan and Sahara Airlines' buyout. The industry began
acting like a cartel. AirAsia will break the cartel which is in the interest of
the consumers,“ says Subash Goyal, chairman, STIC Travel Group, and president,
Indian Association of Tour Operators.
Now prices are expected to settle
somewhere between the current promotional low fares and the cartel-promoted
sky-high prices before AirAsia's entry. It will be in the interest of the flyers
to book their flights at the earliest.
However, routes where AirAsia and
other new airlines are looking to start operations could see a drop in air
fares. There is a high probability that AirAsia will soon start offer ing
services from a centre that operates international flights -Kolkata, Chennai or
Thiruchirappalli. Since Bangalore is going to be its operational hub, it may
also start flight operations to nearby places such as Hyderabad, Kozhikkode,
Thiruvananthapuram, Puducherry, etc.
Expecting AirAsia's expansion to
other routes, airlines have begun cutting rates. For instance, Indigo and
SpiceJet have announced tickets starting from `1,999 for most routes they
operate on. So, travellers who can wait for a few more weeks should wait for
AirAsia's predatory offers and counter offers by other airlines, to benefit
from the price war. The launch of Tata-Singapore Airlines is expected around
September-Oc tober. Though this is going to be a full-service carrier, its
launch and the additional supply will put pressure on air ticket rates and
could bring the prices further down. “TataSingapore Airlines JV's entry is
going to be another factor that may shake up the domestic aviation market, but
things should stabilise after that,“ says Indiver Rastogi, chief operating
officer and head, corporate travel, Thomas Cook (India). STIC's Goyal agrees:
“Due to increase in competition, fares may fall once again when the
Tata-Singapore Airlines JV is launched.“ Book early There are several ways
smart flyers can get good deals. The most important among them is: Book early.
Spot rates (for immediate travel) are usually 2-4 times higher compared to
ticket rates a few months earlier.
And this is advisable even to the business class travellers. “Though it is difficult for corporate customers, we still advise them to book in advance to save costs,“ says Rastogi.
Why do airlines like advance bookings? This is part of their yield management. “Only the first few seats (15-20) are offered at the lowest rates and then they keep on increasing the fares,“ says Sridharan. They keep the last few seats for the spot customers and charge very high rates from them. “Corporate customers who travel at the last minute and pay the maximum price are subsidising customers who book early,“ says Rastogi.
And this is advisable even to the business class travellers. “Though it is difficult for corporate customers, we still advise them to book in advance to save costs,“ says Rastogi.
Why do airlines like advance bookings? This is part of their yield management. “Only the first few seats (15-20) are offered at the lowest rates and then they keep on increasing the fares,“ says Sridharan. They keep the last few seats for the spot customers and charge very high rates from them. “Corporate customers who travel at the last minute and pay the maximum price are subsidising customers who book early,“ says Rastogi.
Use calendar spreads The rates
offered by airlines keep varying. “Monday morning flights to major cities are
costly,“ says Rastogi. This is because of the heavy rush of business travellers
at the start of the work week. Similarly, there is heavy outbound rush from
cities on Friday evenings and this pushes up the rates. Leisure travellers can
avoid this rush and save money. “Book tickets on Tuesdays and Thursdays as they
are usually cheaper on these two days of the week,“ says Expedia's Malhi.
Though the rush will be lesser
compared to Mondays, morning rush to major cities on all weekdays is quite
high. Similarly, on all weekdays there will be outbound evening rush -though a
bit less compared to Fridays.
Leisure travellers can easily avoid this by booking flights in the middle of the day. And, if you are ready for a little inconvenience, there are several late night connecting flights that offer discounted air fares.
Leisure travellers can easily avoid this by booking flights in the middle of the day. And, if you are ready for a little inconvenience, there are several late night connecting flights that offer discounted air fares.
Festival day booking Another problem
faced by Indian air travellers is the jump in fares close to major festivals.
The government has to take steps to control this. “During Christmas time,
flying to Goa becomes costlier than flying to London,“ says Goyal.
Since the government may actually
not do anything about it, you can take steps to help reduce your costs. “Book
on the day of the festival, in case you have to travel the same day,“ suggests
Malhi. This is because most travellers want to reach the home / tourist
destinations before the festival and, therefore, the rates are a bit cheaper on
the day of the festival.
Go for combo offers The commonest
combo offers are the return trips. However, if you want to cancel your journey,
some airlines may force you to cancel the return as well. Therefore, go for the
combos only when the return fare is offered at a significant discount. Next in
line are hotel-plus offers. “Travellers should take good hotel deals when
available. After all, they have to look at the bundled cost for the trip and
not just at one component,“ says Rastogi. “At times, air fare plus hotel room
costs may almost be the same as the air fare alone at other times,“ says
Sridharan. Some sites offer travel insurance deal also, go for it only if you
need to buy insurance.
Wait for offers “Travellers have to
plan in advance and then wait for promotional offers,“ says Sridharan.
Though offers pour in almost on a weekly basis, travellers have to act fast to benefit.
“Since offers are available for a few hours, they (travellers) have to get the information fast (by signing up for mobile apps, email alerts, SMS alerts, etc.) and also to make up their mind and take action immediately,“ says Dhall. The offers can come through your bank as well. For example, Indigo is now offering 10% discount on base fare for HDFC Bank and SBI card holders. However, please note that you can't club two offers. So, pick the offer that gives you the maximum benefit.
Though offers pour in almost on a weekly basis, travellers have to act fast to benefit.
“Since offers are available for a few hours, they (travellers) have to get the information fast (by signing up for mobile apps, email alerts, SMS alerts, etc.) and also to make up their mind and take action immediately,“ says Dhall. The offers can come through your bank as well. For example, Indigo is now offering 10% discount on base fare for HDFC Bank and SBI card holders. However, please note that you can't club two offers. So, pick the offer that gives you the maximum benefit.
ETW14063
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