Technological revolutions have simplified our lives in a number of ways. Online flight booking, reservations, payments, money transfers and many other time consuming activities can be carried out with just one click of a mouse button or a tap of the mobile phone. Earlier, it took days and weeks to introduce a new product or offer on the existing ones, and months to assess the results. However, now, these offers reach to target customers instantly, and its impact can be assessed in a short period. For instance, SpiceJet is offering around one million airline tickets having a base fare of just INR 999 and a significant number of tickets are already sold as per reports.
Studies show that online ticket bookings do not only save precious time, but also save a lot of money. A lot of hard earned money can be saved by availing seasonal offers rolled out by different carriers. Travellers planning their trip anytime between January and October in the next year can get one of those million tickets, prior to 10th of July. This is one of the most successful marketing strategies followed by low-cost carriers (LCCs) of other countries. Usually tickets booked under this scheme cannot be cancelled and are non-refundable, but as per Directorate General of Civil Aviation (DGCA), surcharge including taxes and other fee, except for the base fee can be claimed by travellers.
Industry experts say that this offer can generate quick funds for the Sun Group of India by turning in the fliers with long term plans. The carrier is using aggressive strategies to boost up the sales as the Premium Economy class was recently introduced by the airline, having about 36 inches of leg room as against the usual 32 inches provided in the Economy Class. As per industry reports, these offers have considerably increased the SpiceJet flight booking in past few months.
SpiceJet, the Sun Group aviation foray, has become a pioneer of flash sales in the current fiscal. It has been offering extensive promotional schemes since January this year and has proved its competence in providing cheapest air tickets to its passengers. Lately, the carrier launched the Monsoon airfare sale, which offered a starting price of INR 1999. Later, the low-cost carrier (LCC) extended the validity of the offer in order to attract more and more air traffic. The aviation sector of India is witnessing an exciting fare battle among carriers, and it has been sparked further due to the inception of the operations of AirAsia India.
The latter is a foray of the flag carrier of Malaysia – Malaysia Airlines, and it commenced operations in India in June this year. In a bid to live up to the tough competition in the market, all no-frills airlines of the country have involved themselves in the race of offering low-cost flights. The most recent announcement came from IndiGo, a leading budget air service provider of the country, on June 18th 2014, when the LCC dropped the starting price of air tickets to INR 1724. This promotional scheme was launched by the LCC in a responsive follow-up to the monsoon sale of the Sun Group.
A recent survey conducted by a travel agency reveals that bookings of SpiceJet flight have seen a significant upsurge. The carrier has been announcing an extensive series of promotions throughout this year. Be it the INR 1 discount or 50 per cent slash on airfare, this LCC has gone the extra mile to survive in the market by offering cheap tickets. During the month of March this year, the Sun Group had surprised its passengers with a festive welcome in several domestic routes. All these thoughtful strategies have pushed the company several steps higher in the aviation industry of the country.
SpiceJet, which is one of the leading low-cost carriers (LCC) of India, is seemingly expected to join the brigade of airlines in profit soon. In the past couple of years, the aviation space of the country has witnessed several ups and downs. Only a few no-frills carriers have been able to report profitable positions in the market. However, the Indian market has seen some significant changes in the current fiscal. Many international carriers have expressed interest in buying stakes of different airlines of the country that assures the progressive situation of the industry here. Besides, another important development, which affected the national aviation space, was the commencement of the operations of AirAsia India. This led to an interesting airfare war among leading domestic airlines.
In a bid to attract more and more traffic, the carrier recently announced the extension of its monsoon discount scheme, which offers a starting price of INR 1999. This offer is valid on bookings of all domestic destinations of the LCC till June 19th, 2014. The travel period for this sale extends between July 19th and September 30th this year. According to travel experts, positive impacts of the growing healthy competition in the market, as well as, a plethora of strategies and schemes, have somewhat enhanced the position of the airline.
SpiceJet flight fares discounts, upgradation in services and announcement of various promotional schemes with a range of benefits for its passengers has had an impact on its position. These factors have together contributed towards the bolstering of the position of this budget airline. It is being predicted by experts that the growing air traffic of this low-cost air service provider might help it cover its cost margins and put it in a profitable place in the aviation industry.
Just before the online flight booking options in Indian aviation are set to increase, the carriers operating in the nation seem to leave no leaf unturned to attract more passengers. The initial four months of the year were marked by a series of discounts from all the operators in the market, which encouraged more passengers to opt for flights. Some of the carriers such as SpiceJet and GoAir offered more than five rounds of flash sales, targeting a particular niche population at a time. Recently, the market leader IndiGo offered special discounted flight fare rates for travelling families. The Sun-group airline, SpiceJet, seems to take notice of its success and launched a similar offer last week.
This offer is named Friends and Family and is beneficial for travelling families or even those who are flying in groups. Under this scheme, four fliers to nine when making a SpiceJet flight booking together can get discounts of up to 25 per cent on most domestic routes. Travellers should keep in mind though that this per cent of discount will be calculated on the base fare and the surcharges are taxes are exempted from the calculation. Furthermore, not all seats on a single flight are available for getting this discounted airfare. Only some of the seats on each aircraft come under this offer and travellers will be allowed to avail this discount based on their choice and availability.
The Indian carriers are trying their best to encourage to stay with them by offering such attractive offers and deals. It is noteworthy that Indian aviation is set to witness the entry of Singapore Airlines and AirAsia, which will start offering domestic services. This event will set the tune for a more stressful competition among the operators and the carriers, which are already operating in the market are looking to be in the best possible position before their entry.
In recent months, the term – price war – in Indian aviation has been grabbing the headline space more often than not with airlines making a beeline to woo customers with their various domestic flight offers. As many as seven, including the recent one from SpiceJet, has been the story so far in 2014. This calls for some scrutiny as to why airlines are so desperately selling their tickets at discounted prices, at a time, when all they can show in their balance sheets is heavy losses. Is the discount strategy a way to cover up the losses or is it the fear of losing market share to new possible entrants into the already packed sector?
Expert View
Industry experts, with their groundwork done, are of the opinion that both the above-mentioned factors have led to this situation. The losses from the previous year are haunting carriers, and they want to get rid of it as soon as possible; however, the fact is not all can say that they have been successful in their endeavour, even after so many discount offers. The only positive that has come out from all these sales deals is the reaction from the general public, which can be safely said to be overwhelming, especially for SpiceJet offers.
The other issue that has been hanging like a sword on the necks of domestic carriers is the likely foray of international carriers in India, the most threatening among them being Air Asia. Such is the scenario that domestic airlines have filed a petition with the Director General of Civil Aviation (DGCA), through their federation, to not allow Air Asia to start its operations in the country.
It is to be been as what is the future of Indian aviation in coming months and how many times more, can we expect SpiceJet discount deals in 2014.
In spite of the fact that popular low-cost carrier (LCC) SpiceJet has offered as a number of discounts from the beginning of the running calendar year, it has not increase the passenger footfall. Undoubtedly, there was a mad rush among people to book air tickets during this interim, but the flash fares failed to boost the traffic. As per the reports that have been received, the LCC carried almost 11 per cent less travellers during March 2014 as compared to the same time previous year. The number of fliers who boarded flights of this airline in March 2013, was approximately 10.58 lakhs as compared to the 9.41 lakhs.
Sharp Decline in the Load-Factor
There was a sharp fall in the load-factor for this Kalanithi Maran backed airline as well. On an average, the airline was flying its aircraft at over 76 per cent during the same time last year. Surprisingly, it was down below 69 per cent for March, this year as per the reports. This is certainly not what the airline was looking forward to during this interval. Incidentally, the carrier suffered a number of poor quarters in the previous year, that sharply affected its revenues.
Also, a major point in this respect is the overall traffic in Indian aviation grew in Indian aviation. Though the growth was minimal, however, there was a positive increase in the number of passengers. In this event, its rivals have made some growth in respect of passengers carried. However, a lot needs to be done by this carrier to increase the SpiceJet airlines booking to come back to profiting ways. As foreign carriers are set to step their foot in the market, it is important that this LCC get a strong foothold and a good passenger traffic.
If you are looking for a cheap air ticket for domestic travelling, there are more options waiting for you. Popular low-cost carrier (LCC), SpiceJet, has launched, yet another round of discounts for travellers, making it seven in a row, from the beginning of this calendar year. This time, it is the western part of the country that the LCC has targeted to offer its flash reduced flight fares. The offer was announced on April 16th, 2014 and is valid for three days, where booking can be done by travellers. Travel period for this reduced booking rate is valid from June 10 to August 10, 2014.
Important Cities in Western India Targeted by Discounts
This discount is valid for travel from popular cities in the western part of the country. As a result of this discount, travellers will be able to book tickets from approximately 30 destinations for a price of a little over 2000 INR. This is comparatively half of the ticket rate as compared to the original. Some of the most popular locations covered by this discount are Surat, Pune, Mumbai, Indore, Goa, Aurangabad, and Ahmedabad. SpiceJet Airlines ticket booking is expected to witness a boost as a result of this flash discount.
SpiceJet was recently reprimanded by Directorate General of Civil Aviation (DGCA) for launch of the one INR base fare scheme. The authorities had termed such sales as predatory and immediate orders were issued to stop such unrealistic discounts. However, the Kalanithi Maran backed airline seems to have taken it in a positive way. They understood where they had stepped their feet wrong and soon made amends. This time around they have come up with a more practical and realistic offer, which will definitely encourage travellers to make a booking. Simultaneously, the carrier hopes to make good business, both during the lean and peak seasons.
