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Business / Qatar Business

Promotional fares of airlines evoke huge response

Published: 03 Aug 2016 - 12:00 am | Last Updated: 13 Nov 2021 - 09:09 am

By Mohammad Shoeb

DOHA: The promotional fares offered by most Doha-bound airlines evoked overwhelming response from passengers, especially from the low-income expatriate workers from Asian countries who were able to made their travel plans in advance to avail the benefits.
Powered by cheaper fuel (ATF) prices, almost all airlines, including Qatar Airways, Philippines Airlines, Air India, Jet Airways and Cebu Pacific, the Philippines’ leading carrier, offered attractive promotional air fares to selected destinations to retain their respective market shares.
Some of the other airlines which offered promotional fares this season also included Sri Lankan Airlines, Nepal Airlines, Biman Bangladesh Airlines, Himalaya Airlines, Air Arabia, Etihad Airway, Emirates, Pegasus Airlines and British Airways.
“It was a win-win situation both for the passengers as well as the travel agencies. We did good business this season, but the only issue was that we had to put hard efforts to increase the volume of sales,” said Vijay Raj, senior official of a leading travel agency.
“This was for the first time when almost all the carriers offered promotional fares to several popular destinations at the same time, I believe this was possible due to the lower energy prices and partly due to the growing competition in the sector,” he said.
On number of seats and percentage of discounts offered by various airlines, Vijay said that it was a very complex question as discounts varied between 20 to 40 percent depending on many factors, including travel dates, airlines, destinations and cabin class.
Some analysts from the travel industry say that growing competition and lower fares may be good for passengers in the short-run, but in the longer-run, “unhealthy competition”, especially posed by budget-carriers, may pose great challenges for premium carriers.
“At times some budget carriers from neighbouring countries are offering Doha-Dubai return tickets at prices as low as QR350, and draining out passengers of rival carriers. As a result competing carriers are forced to fly under-capacity… Such competing carriers can also opt for a price war, but they cannot go down beyond a certain limit and sustain for long given their high overheads,” said a market analyst who did not wish to be named.
Although the booking validity for promotional fares of most airlines expired on July 31, 2016 but some airlines, such as the newly launched Himalaya Airlines (of Nepal), is still offering one-way tickets from Doha to Kathmandu at QR500.
Qatar Airways, the country’s national carrier also offered special fares from Doha to some selected destinations in America, Europe, Africa and Australia, with prices of all-inclusive return ticket fares to some neighbouring countries starting from QR510 for Economy Class.
Genaro Bong Velasquez, Regional Manager for Europe and Middle East at Philippine Airlines, confirmed to The Peninsula, in a statement saying that the airline offered promotional fares. Bookings were valid until July 31, 2016 with a travel validity until November 30, 2016.
Similarly Cebu Pacific had also announced the launch of an exclusive seat sale for flights from its Middle East network to top destinations across the Philippines, which was valid from July 18 until July 28. Travellers from Doha to several tourist destinations across the Philippines benefitted from the special one-way promotional fare of QR699.

The Peninsula

 

By Mohammad Shoeb

DOHA: The promotional fares offered by most Doha-bound airlines evoked overwhelming response from passengers, especially from the low-income expatriate workers from Asian countries who were able to made their travel plans in advance to avail the benefits.
Powered by cheaper fuel (ATF) prices, almost all airlines, including Qatar Airways, Philippines Airlines, Air India, Jet Airways and Cebu Pacific, the Philippines’ leading carrier, offered attractive promotional air fares to selected destinations to retain their respective market shares.
Some of the other airlines which offered promotional fares this season also included Sri Lankan Airlines, Nepal Airlines, Biman Bangladesh Airlines, Himalaya Airlines, Air Arabia, Etihad Airway, Emirates, Pegasus Airlines and British Airways.
“It was a win-win situation both for the passengers as well as the travel agencies. We did good business this season, but the only issue was that we had to put hard efforts to increase the volume of sales,” said Vijay Raj, senior official of a leading travel agency.
“This was for the first time when almost all the carriers offered promotional fares to several popular destinations at the same time, I believe this was possible due to the lower energy prices and partly due to the growing competition in the sector,” he said.
On number of seats and percentage of discounts offered by various airlines, Vijay said that it was a very complex question as discounts varied between 20 to 40 percent depending on many factors, including travel dates, airlines, destinations and cabin class.
Some analysts from the travel industry say that growing competition and lower fares may be good for passengers in the short-run, but in the longer-run, “unhealthy competition”, especially posed by budget-carriers, may pose great challenges for premium carriers.
“At times some budget carriers from neighbouring countries are offering Doha-Dubai return tickets at prices as low as QR350, and draining out passengers of rival carriers. As a result competing carriers are forced to fly under-capacity… Such competing carriers can also opt for a price war, but they cannot go down beyond a certain limit and sustain for long given their high overheads,” said a market analyst who did not wish to be named.
Although the booking validity for promotional fares of most airlines expired on July 31, 2016 but some airlines, such as the newly launched Himalaya Airlines (of Nepal), is still offering one-way tickets from Doha to Kathmandu at QR500.
Qatar Airways, the country’s national carrier also offered special fares from Doha to some selected destinations in America, Europe, Africa and Australia, with prices of all-inclusive return ticket fares to some neighbouring countries starting from QR510 for Economy Class.
Genaro Bong Velasquez, Regional Manager for Europe and Middle East at Philippine Airlines, confirmed to The Peninsula, in a statement saying that the airline offered promotional fares. Bookings were valid until July 31, 2016 with a travel validity until November 30, 2016.
Similarly Cebu Pacific had also announced the launch of an exclusive seat sale for flights from its Middle East network to top destinations across the Philippines, which was valid from July 18 until July 28. Travellers from Doha to several tourist destinations across the Philippines benefitted from the special one-way promotional fare of QR699.

The Peninsula