Increase in prices of flight tickets for this summer holidays
Posted on: 19/May/2018 12:17:59 PM
Now the Summer Holidays at the peak, People travel to various destinations depending on their own state, time and financial abilities. The actual chain event would be the discounts and low prices fixed for air travel to encourage more number of people leading to increase in flight bookings. But the scenario was entirely in a different aspect as the jet fuel price hit the highest mark recently after four years. The ticket prices becoming more costly and people find it difficult to bulk book their air tickets for the family tour or group travel in this summer holidays.
The Airways of travel found a path-breaking track in bringing in more travelers from all classes by stabilizing the price tags of tickets that were once very costly. The recent increase in jet fuel prices causing the increase in ticket fare not only discourages the public to travel through flights but also the whole market of Airway transport will find an economical degradation.
The Recent Tariff Analysis clearly indicates a sudden increase of about 17% in the first 15 days of May 2018 compared to the last year’s tariff in the same period. Even when considered from April 2018 this updated prices are 15 percent higher in this month of May. Initially the tariff gradually went up to 10% higher than the previous year and now the new report confirmed the whopping 17% increase of the tickets.
An increase of 6.3% in Aviation Turbine fuel prices happened in the start of the May 2018 and the Indian Oil mentioned this price shoot up in their official reports as 26.4%, jotted down to Rs65, 340 per Kilolitre in Delhi. The important factor deciding the air fare is the fuel prices and so the increased jet fuel price was straightly kept on the heads of the Airway passengers affecting their summer trips. So there is a clear downward spiral moment in the ticket bookings of this holiday season as the demand got decreased in terms of unexpected high price tags of the airlines.
According to an Aviation Official’s report the increase in the cost of fuel should not be transferred to the passengers and this sudden shoot up of the air fare will be effective at the times of last minute booking or within a week of the flight’s departure. All these factors lead to this decline in the demand in the month of May but there is no clear indication of prices getting normal or decreased as per the expectation from the public.
Business Experts in various parts of the country reports the airfare increase will affect the total profitable zone in terms of imbalance in the operations of the flight ticket price management. So the marketing focus of the stock and share concerns of the Aviation Companies will surely find a downward mark in the total profit for the year 2018.
