ME airlines see 50% drop in advanced bookings
by This email address is being protected from spam bots, you need Javascript enabled to view it on Sunday, 12 April 2009
Airlines in the Middle East have seen a 50 percent drop in the number of advanced bookings as passengers wait for more bargains inline with the travel slowdown, it was reported in Sunday.
The year on year fall-off in advanced bookings comes at the same time as most airlines in the region have increased the frequency of their summer flight schedules, with some even adding new destinations.
Many airlines have also cut the price of economy travel in a bid to boost the volume of travellers, according to a senior airline executive who did not want to be named in an interview with UAE daily Emirates Business.
Pricing policy at most full service airlines now offered passengers cheaper fares on weekdays, compared with the weekends, meaning even in economy the fare varied depending on demand, he explained.
If demand increased the airline would release more seats in that sub class, within the economy class, which passengers were now cottoning on to, the airline executive said.
As the cost of flying falls travel agents in the region are becoming more hopeful that last minute bookings for summer vacations will pick up, although business travel is still expected to decline.
Waseem Rahmany, senior manager, sales and marketing, Al Rais Travel, said: "Because of the general economic condition people have become cautious and are delaying the buying of tickets. The new trend, unlike the previous years, is that people are buying tickets closer to the date of travel."
First class and business travel were the two areas that were suffering most, Rahmany reported, adding that if the prices on these seats were further reduced business may pick up.
"People are still travelling, though less in first-class and business class," he added.
However, Rabih Saab, vice-president, Middle East, Travelport, commented: "In February, there were 5.4 million air travel segments booked through the global distribution systems in the Middle East, which was only a slight decline over the 2008 figures."
Many travel agents and airlines are now looking to China as a market that will generate more traffic to Middle East, added John Koldowski, Director, Strategic Intelligence Centre, Pacific Asia Travel Association.
"China is a strong sector in its own right and the region's business or leisure oriented travellers might restructure their travel planning to ensure better value for spend, but they will still travel," he said.
READERS' COMMENTS
Posted by Freestyler on Monday 13 April 2009 at 08:37 UAE time
To hell with airline economics,all have made loads of money out of the middle class and now its pay back time....major loads from the middle east is to india of which a major chunk is the labour work force-they too pay the full economy fare but get treated like beggars....probably the dude from germany flies only first class.......
Posted by Barak, sharjah on Sunday 12 April 2009 at 18:03 UAE time
is it any wonder, prices last week to the uk on most of the direct flights were 600-700 dirhams cheaper. where do these airlines think their going.
I don`t think they have heard of the credit crises.
Posted by TangoSierra, DUS, Germany on Sunday 12 April 2009 at 14:33 UAE time
@ Paul
Come on, Paul! Most passengers nowadays want to travel as far as possible in the most comfortable seat with all the unnecessary gimmicks like super-dooper-high class-last technical development IFE (InFlight Entertainment) with nice meals and free drinks plus friendly flight attendants - and that for not more than US$ 20 incl. baggage free allowance of at least 50kg, free advance seat selection, all fuel and security surcharges! Are you kidding??
And yes, all the airlines are doing the same - they have the same aircraft, burning the same type of fuel ( no water yet), using the same type of drinks(albeit different "manufacturers"), the same airport infrastructure and flying the same skies. Of course, all this is for free for them.
Ever looked at airline economics??
Posted by Irfhan on Sunday 12 April 2009 at 13:51 UAE time
I totally agree with Paul's comments. As airlines are now cutting down on 1st class and business class to accomodate more of economy.
The future of airlines operating will be to meet the rising expectation of the economy class passengers.
it will be wise for the CEO's of the airline industry to take note and act to make economy class also decent.
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