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Wednesday, 16 September 2015

The Facts for Airlines Discounted Fare Offer

From Last Couple of Weeks; AirAsia India and GoAir became the latest domestic airlines to offer discounted tickets for the coming lean season, following SpiceJet, which launched four such offers in July and August. An analysis of such discount sales, where the number of tickets on offer was mentioned by the airline, shows that for all the visibility they generate, most of the time, the pool of tickets on offer is small. From a passenger’s perspective, it turns the proposition into a luck of the draw. From the airline’s perspective, in most cases, it’s about positioning itself as a price player without conceding too much from its profits.

In seven out of 10 offers, the number of discounted seats on offer was less than 10% of the total seats the airline sold during the same period; four were under 5%. There was one offer in which SpiceJet put up about one-third of its ticket block on discount. That same year, SpiceJet posted its largest-ever loss of `1,003 crore and, six months later, its existence was in question. Even after revival, SpiceJet remains the most active on the discounting front, though with a significantly lower percentage of seats.

Above article is sourced by Google Search.