Spot flight rates drop to 50% in January

0
11

After a blockbuster December for airlines, with high fares and strong demand, January saw a whopping 40% drop in spot fares on several subway routes, indicating demand has eased, data from multiple travel websites showed.

Bargain fares for a Mumbai-Delhi flight have fallen 6,000-27,000 of 14,000-27,000 in December. Mumbai-Bengaluru bargain rates currently cost 4,000-6,000 of 4,000-14,000 in December. Similarly, Delhi-Kolkata rates have dropped to 8,000-18,000 of 15,000-22,000 in December, data from travel portals showed.

“Average spot rates in January are down 15-20% month-on-month due to a decrease in demand compared to the peak season in December. The fall in airfares may also be due to the recent airline sell-off of travel in January. In December, there was a high demand for travel due to the Christmas and New Year holidays, which also drove airfares higher,” said Aloke Bajpai, group CEO and co-founder of Ixigo.

See also  Donald Trump plans to stop campaign targeting Republican opponents — and prosecutors

The Indian aviation market saw the strongest demand since the outbreak of covid in December, with monthly air traffic of 12.7 million passengers, slightly down from the level of 13 million passengers in the pre-covid period of December 2019.

India also saw a record number of air travelers on Dec. 24, when 435,500 people took to the air on 2,904 flights. This was also higher than the daily average of 2,900 flight departures and 400,000 air passengers in the pre-covid year 2019.

According to Yatra.com and Cleartrip, airfares fell by at least 14% in January compared to December. However, travel websites also saw a surge in demand over the next week. Spot rates for December were 30% higher than spot rates seen so far in January, Cleartrip said, adding that this could change for spot bookings for the upcoming long weekend.

See also  Never Again: How a 'Lesson of 2011' Shaped Biden's Non-Negotiating Stance on Debt Limit

“We are noticing a 10-15% increase in fares over the Republic Day weekend,” said Bharatt Malik, business head for flights at Yatra Online Ltd.

Similarly, EaseMyTrip has seen about a 20% increase in airfares for Republic Day weekend flights from the regular days of the month. According to travel website Kayak, there has been a flurry of inquiries about trips to Goa, Dubai, New Delhi, Mumbai and Bangkok.

“Domestic searches for Republic Day flights are up 185% compared to the same period before the pandemic. Our data also shows an increase of about 24% for searches for international flights,” said Tarun Tahiliani, country manager of Kayak India.

Industry experts said that although airfares fell in January, prices are still higher due to high jet fuel prices and the volatility of the rupee.

See also  People rushing to file taxes on January 31 wait an average of 27 minutes on the helpline

According to Kayak, the average economy class round-trip domestic flight is still 40% more expensive than in 2019, and the average economy class round trip price to Asia is about 37% more expensive than in 2019, and economy class international round trip is long overdue. distance still more expensive than in 2019. about 32% more expensive than in 2019.

“A number of factors have influenced the increase in rates. From November, jet fuel prices rose 4.2%. Market forces also played a role, as dozens of people resumed their travel plans after a nearly two-year hiatus,” Nishant Pitti, CEO and co-founder of EaseMyTrip.

“However, we expect only a marginal increase in airfares in the coming months as supply is stabilized by the arrival of new players in the airline industry, provoking a price war,” Pitti added.

Catch all the political news and updates on Live UKTN. Download the UKTN News app for daily market updates and live business news.

More or less

.

LEAVE A REPLY

Please enter your comment!
Please enter your name here