The recent cut in airfares by several airlines has been met by cheer from the beleaguered travel and tourism industry. However, the industry feels that this has come a little late as the holiday season has almost come to an end.
While the Rs 99 airfare is back in fashion, the move would have had more impact had it been announced in early or mid-December feel industry leaders.
Most people indulge in travel during the month of December, especially during the last 10 days of the month.
However, this year, the financial crisis and the recent terror attacks had a significant impact with bookings going down in the range of 20-40%.
“Had the airlines announced the fare cut before people started their bookings, it would have helped improve the numbers by 10-15%,” said Subhash Goyal, president, Stic Travels.
“The last quarter of the calendar year is the best for the travel industry, while the first is the worst. A cut in fares in December would have certainly proved advantageous in these tough times. However, it will have positive impact in the next quarter by reviving the corporate movement which has virtually come to a standstill,” said Arjun Sharma, managing director, Le Passage To India.
“The cut in fares, which may not be much in actual, has definitely helped in uplifting sentiments that were quite negative,” said an analyst.
He added that several measures being taken by the airlines and the aviation ministry, like airfare cuts, offers and campaigns to shore up numbers, come across as a relief and should have positive impact.
“Leading airlines in the country are offering buy-one-get-one free tickets on their international routes. We are talking to them for offering the same on domestic routes to rebuild momentum,” said Goyal.
“Hotels, airlines and other stakeholders have to work in tandem and come out with packages in line with what is being done by several international destinations to improve the situation,” said Virat Verma, CEO, Global Hospitality Consultants.