One of the carriers of the country – SpiceJet – has emerged as the first choice of travellers in case of domestic journeys, in the past few years. This low-cost carrier (LCC) is owned by the Sun Group and has its administrative and corporate offices at Chennai and Gurgaon, respectively. The carrier has managed to attract travellers who used traditional modes of transportation by a highly effective pricing strategy. Under various schemes and discount offers, the cost of SpiceJet flight booking is even lower than train tickets on many routes. When this LCC entered the market, it offered tickets at INR 99 (exclusive of taxes and surcharges). People can ensure best value for their money by reserving seats with this airline to various national and international destinations.
International Routes and Domestic Sectors
The booking option list of SpiceJet comprises more than 40 cities. International destinations include Sharjah, Colombo, Kabul and Kathmandu, whereas domestic include every nook and cranny of the nation, from Thoothukudi district on one hand to Srinagar on the other. Most of the bookings are made for Delhi Mumbai flights or for destinations like Bengaluru, Lucknow, Chennai, Chandigarh and Goa. People can opt for low cost flights to enjoy unparalleled services provided by this LCC.
Services offered Onboard
It provides an array of services that makes the overall travel experience truly satisfying. The airline has brought tremendous changes in its existing services along with addition new ones have been added to the list. Apart from booking online tickets, passengers can also opt for web check-in process that saves a great deal of time. Onboard facilities include meals and bottled water served on demand, Wi-Fi and headphones access. It provides direct, indirect and non-stop flights on many routes. The carrier has gained significant market share in the previous few months, and experts credit it to offers rolled out in respective months as well as capacity addition in the past few months. It also replaced the flag carrier – Air India – from the third position in the ranking list on the basis of market share. As per data revealed by the Directorate General of Civil Aviation (DGCA), this Sun Group-owned airline registered maximum load factor among contemporaries in the recent quarter.
The global travel industry is expanding and is robust in growing economies like India and China. As per reports, travel sales are expected to reach $830 billion in the year 2017, in spite of cheap flight tickets offered by carriers. Despite influential role of new economies, North America is leading when market value is considered, and annual growth rate has been estimated at 7 per cent. However, one thing that is common in all the markets is change in the method of seat reservation. The culture of going to the counter is coming to an end as most of the people use internet services or get their tickets booked by agents.
The Emerging Trend
In places like Spain and the United Kingdom, online travel sales accounts for more than 50 per cent. Asia-Pacific is one of the fastest growing travel markets and its value increased to around $91 billion in the year 2014. With the onset of new technologies, and penetration of mobiles and tablets, online flight booking has been replaced with mobile travel purchase. Currently, Japan is the leading country in the regions as far as digital booking is considered, but China and India are catching up quite fast. Improvements in the basic infrastructure and increased access to the internet may act as a catalyst in digital flight booking.
Seat reservations, made by using mobile devices, have increased by more than 20 per cent in the first six months of 2014. When compared to desktops or laptops, it is around 10 times higher in case of booking. Not only air tickets, but car rentals and hotel bookings by using smart devices also increased in the past few years. An average of $600 more were spent on the reservations made by an iPhone or iPad as compared to Android-based devices. However, the sum total of Android bookings is higher in value as well as number.
Effect on the Cost of Seat Reservation
Apart from simplifying the booking process and increasing the reach, it has also reduced the cost of operation to a great extent. The manpower and machines needed by carriers to generate the ticket as well as to distribute it, has been reduced significantly. Now, travellers can book tickets using mobile phones or other devices. Travel portals have launched their applications that can be downloaded by users to book tickets anytime and anywhere. As per reports, in-app bookings account for around 12 per cent out of total reservations done using the phone.
How does it Work?
Simplicity is the first reason that it is preferred by passengers over other methods. Just with an internet connection and smartphone, travellers can handle most of the transactions in minutes. It usually includes information regarding all the flights operated on the required routes along with secure online payment option. After making a seat reservation, passengers can opt for online check-in process, view the flight schedule, track current status and other flight information. They can also amend dates or request cancellation using the same application. In some cases, passengers may have to visit the office in person to cancel tickets. Apart from this, a valid identity card is required at the terminal for boarding the flight.
The leading low-cost carrier (LCC) of India – IndiGo – recently received its 100th aircraft. Based in Gurgaon, it operates hundreds of flights with a fleet size of over 80 models, from the primary hub at Indira Gandhi International Airport (IGI), Delhi. This airline is the largest service provider in the region with the market share of more than 32 per cent. It provides cheap airline tickets for over 40 national and international destinations. In order to reduce the overhead cost, this LCC operates Airbus models only, and the recently received is an A320. It is a part of the bulk order placed by the airline back in 2005; some of them are still in the process of manufacturing.
Apart from new orders, it also signed a deal with the Tigerair regarding 12 models on lease and these deliveries started in the month of October. These additions in the fleet have been reflected in the IndiGo airlines booking option list as well. It initiated operations on new routes and increased the number of flights on the existing ones. As per reports, the new aircraft landed at the IGI Airport in the morning, making this carrier a part of the league of Jet Airways and Air India with more than 100 aircraft. It placed an order with the France-based manufacturer – Airbus – for 250 aircraft, one of the largest orders placed in the aviation industry that has been evaluated at a price of approximately $25.5 billion. The fast growing LCC is a loyal customer of Airbus models and has placed many bulk orders with the company since its inception.
The president of this carrier said that collection of the 100th model is a milestone. It is expected that many such milestones will be created in the coming years. The Indian aviation industry is enjoying a good period in terms of business as a significant number of new fliers avail these services every day. With the supportive policies and terms of the government, many global airlines want to set up their airline in the country. AirAsia – the Malaysia based airline is a recent example to be followed by Vistara.
The world has become a global village with the onset of revolutionary technologies in the communication industry. People belonging to different parts of the world can get connected through video chat or voice calls in just a few seconds. This increased communication led to expansion of business as well as personal relations with people of different cities and countries, which in turn increases the need to cover long distance journeys for personal meetings, when required. People involved in such cross-country or cross-city businesses often opt for air booking to save their precious time and reach the destination without any hassle. Significant reduction in air fares has increased the affordability, and hence reports show a long jump in the number of fliers in the recent years.
The cost aviation turbine fuel (ATF) is extremely high in India as compared to other parts of the world. In order to provide a platform for new entrants and motivate existing player, respective authorities are making efforts to bring it down. A reduction of approximately 7.3 per cent in the existing prices announced by them has come as a sigh of relief. This is the fourth time a cut in ATF has been done and it is expected that low-cost carriers (LCCs) will make the most of it by reducing the cost of seat reservation. The chief operating officer (COO) of SpiceJet said that the load factor was around 86 per cent because of festivity season, backed by heavy discounts. However, a further fall in the prices will certainly increase SpiceJet booking in the coming months.
As per reports, the jet fuel rate for Delhi is approximately INR 62537.93 per kilolitre after reduction of INR 4987.70. The ATF in Mumbai is comparative high and stands at INR 64414.98 per kilolitre. Similarly, it varies with different states because of difference in the taxation policies. Cheaper procurement cost due to declining international oil prices led to reduction in price. As per industry experts, 40 per cent of the cost seat reservation with airlines is constituted by jet fuel. It is expected that India-based airlines may reduce tickets prices and Jet Airways, Air India, GoAir and IndiGo booking can increase in the following months.
