The Hindu : National : Fluctuating air fares could be confusing

Online edition of India's National Newspaper
Friday, Oct 19, 2007
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National

National

Fluctuating air fares could be confusing

Ananth Krishnan

Fixed as per complex pricing models and, inter alia, consumer demand

Airlines hike rates as per demand as travel date nears
Weekend fares tend to be more expensive

CHENNAI: For most travellers who book their flights online — statistics say eight out of ten air travellers in India do so — the fares they discover can be both pleasantly surprising and confusingly depressing. A return trip to Mumbai could cost less than Rs. 3,000 when booked early enough. But on a busy day at peak travel hours, the fare for the same trip could even exceed Rs. 6,000.

Air fares are subject to great fluctuations as they are determined by airlines using complex pricing models, which take into account various factors ranging from recent air-traffic trends, consumer demand, availability, seasonality and even the time of day.

Passengers are often left confused by the variations in the cost and availability of air fares, according to D. Sudhakara Reddy, president, Air Passengers’ Association of India (a non-profit organisation for passenger welfare). Tickets on a particular flight are divided into different categories. ‘Check fares’ are cheaper than the full fares, but give you less freedom to change your travel plans as they have higher cancellation charges. Domestic airlines also give you discounts if tickets are purchased a month in advance.

But closer to the date of travel, fares become less predictable. “We notice that around two weeks before the travel date, airlines start playing around with the fare depending on the demand,” Mr. Reddy says.

Travel patterns

Air fares are also subject to daily fluctuations, depending on which flight timings during the course of a day have the most demand. Early morning and late evening flights are the most popular for business travellers, so they tend to be more expensive than mid-day flights. Weekends also tend to be more expensive than weekdays for air travel.

Costs are also determined by the seasonality and direction of travel, especially for international sectors. “The Christmas season is the worst time to travel to Europe and the United States,” says Indumathi Venugopal, director, Pegasus Travels. “Another busy season is August, when students are going back to study and NRIs are returning [to their resident countries].”

The direction of travel is also important. If seasonal traffic is in the opposite direction, you can find fares that are particularly cheap. “January-February is the peak season for returning traffic [into India],” Ms. Venugopal says. “Tickets from India to the U.S. will be really cheap then, but the returns will be very expensive.” In India, festival seasons are also a good time to fly. As most people in India prefer to stay at home during festival holidays, one can expect good deals.

Plan early

Ultimately, industry experts say “planning early” is the surest way to get you the best air fares. For in-demand sectors such as the U.S., even this is not always possible. “People are booking flights even six months in advance to the U.S.,” Ms. Venugopal says. And it does not make sense to simply book a flight to get a good price if you are not entirely sure about your travel programme, as late charges and cancellation fees are often substantial.

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