No more high flying rates

The cost of an air ticket to Goa and from it during the Christmas and New Year weekend will dramatically increase. It is a bit like that other scientific fact. Day will always follow the night. 
This increase in airfares causes much consternation and handwringing but nothing else. This year however the airfares did not reach those astronomical heights of a few years ago when a Delhi –Goa flight cost Rs 45,000 on New Year’s Eve. 
The tourist season in the State commences in the month of October and usually meanders right up to March or even April. Foreign tourists mixed with an increasing number of domestic tourists usually comprise the mix of visitors. During the year, the cost of an air ticket between Mumbai and Goa will cost anywhere between Rs 3,100 and Rs 5,300 at the most depending on the time of the flight. During the years when the casinos were in full bloom, air tickets to Goa and out of it just before and after the weekend would increase and then drop by Monday evening.     
The trade in Goa when contacted by the Herald had definite views about the trend of high prices during the festival season. 
Bruno Gomindes of Travco Holidays said this was due to the very high demand for tickets to Goa and the limited availability of seats which resulted in airlines making the most of the situation. 
Mr Gomindes said “It is called the blackout period when these fares reach such highs. You have to however realise that fares drop dramatically from January 4. From December 18 to January 3 the rates are high. This season we sold one way tickets for Rs 18-20,000 from Delhi to Goa. Well, all I can say is that one should plan one’s itinerary well in advance so as to avoid paying such high rates.”  
He went on to say that it was now possible to buy tickets for anywhere between Rs 2700 and Rs 3800 between Mumbai and Goa. He said it was a very tough market and there was always the fear that prospective passengers could switch to another airline or cancel the plan to fly.  
Graham Valadares of Travel Stop said this year the rates did not reach the high’s of four years ago when a Delhi –Goa ticket almost cost half a lakh. This Christmas season, Graham said a Mumbai-Goa flight went for Rs 10,000 and business class for Rs 15,000-16,000 in the run up to Christmas and the New Year. 
He said “I have been in this business for 12 years and I can say this year the rates were low. I once sold a Goa Delhi ticket for Rs 35,000 on Jan 1. This year if you were smart and booked your tickets in advance it was possible to get tickets in the Rs 5,000 to 6,000 on December 23 and 24.”  
When asked if it was only the private carriers that indulged in such behaviour, he said that all the airlines were in it and they wanted to make the most of the situation. He said Air India had different classes in economy which meant the lowest priced tickets went for as little as Rs 2000 but which were never available because there was a good chance they were blocked. He claimed if one asked for these rates then, there would be no one to give a proper answer. 
Speaking of another private airline that considers itself the market leader but whom he did not want to name, Graham said they believed in demanding high fares from customers and they did not seem to respect the paying customer  any more.  He said all airlines keep a tab on each other and maintain rates. This year for the first time in recent memory there were empty seats on flights to Goa before Christmas and New Year.    
Ashvina Dias of Akbar Travels of India, Panjim said ticket prices were average this season with passengers able to travel to Goa on Dec 23 for Rs 3500 from Mumbai. Ms Dias said “Demonetisation had an effect. Please remember there were very good sales when airlines were told they could accept old notes. During the season, the flights were not sold out. Please remember when ticket prices increase, our commissions do not increase, in fact there is a great deal of pressure on us to sell because the prospective client could just walk away after changing his plans.” She said in such a scenario only the airlines made money and prudence dictates that it would make sense to book early to avoid paying such fares.   
A source in the oldest airline in the country said her airline did not indulge in such practice and it was the private airlines that behaved in such a manner. No airline, the source revealed, could hike the fare and it was the responsibility of the regulatory bodies to decide on such activity. This year the hike was not dramatic given the market realities and seats were available for a reasonable fare. 
Attempts to reach the corp com teams of private airlines proved futile. The Jet Air corp executive in Mumbai directed the query to Delhi who in a statement noted that most businesses in tourism-related destinations operate with pricing trends that reflect the in-season / off-season demand-supply situation, at a point in time.
From an airline perspective, Jet Airways’ pricing is  market-driven, reflective such prevailing situations.
Airline fares are influenced by multiple factors, including but not limited to the availability of seats on a flight / class of booking / refundable or non-refundable status / time of flight / seasonality etc and generally tend to be higher for direct non-stop flights compared to multiple flights with stop-over(s).
While the pricing system offers several types of fares commensurate with appropriate benefits, the bulk of tickets of reasonable fares naturally gets sold earliest. The booking system displays the entire range, with very few seats on a flight/ per flight showing the uppermost limit. 
A corporate executive in Mumbai, Srirupa Sen before forwarding the query to Mumbai said it would be unfair to say that Jet Air charged high fares. She said it always made sense to book in advance. The Minister of State for Civil Aviation, Mahesh Sharma, had revealed earlier in the year said that PM Modi was very keen to have an upper cap on the ticket price and govt would announce the measures while taking views of the airlines and that it would be by consensus and not through any regulation.
“We are in the process of adopting certain measures to cap ticket price. But we are trying to do it by consensus and not by regulation. Our Prime Minister also envisions that fares be kept in control” Sharma said in an interview. Roland Martins of GoaCan prominent consumer rights activists said if anyone who felt aggrieved could become file a case against any airline and the law could take its course. Perhaps customers all over the country may make this a reality sooner rather than later. Perhaps not. Time will tell.  

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