Air passengers might have a reason to smile this Diwali season as average airfares on many domestic routes have dropped
Air passengers might have a reason to smile this Diwali season as average airfares on many domestic routes have dropped 20-25 per cent compared to the year-ago period, according to an analysis.
Increased capacity and the recent fall in oil prices are considered to be among the factors for the fall in air ticket prices.
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Airlines use dynamic pricing algorithms, which increase fares as demand rises, especially during peak holiday periods like Diwali.
Diwali is one of the biggest festivals in India, and many people travel to be with family or take vacations. This spike in demand leads to higher prices as airlines adjust fares based on the volume of bookings.
The analysis by travel portal ixigo showed that average airfare on domestic routes has declined in the range of 20-25 per cent.
“Last year, airfares around Diwali had surged due to limited capacity, primarily driven by the suspension of Go First airline. However, this year we’ve seen some relief as additional capacity has been added since then, leading to a 20-25 per cent YoY (year-on-year) dip in average airfares across key routes for the last week of October,” ixigo Group CEO Aloke Bajpai told news agency PTI.
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The prices are for one-way average fare on a 30 days APD (advanced purchase date) basis.
For 2023, the time period considered is November 10-16 while it is October 28-November 3 for this year. This is the time around Diwali.
The maximum decline of average airfare is 38 per cent for a Bengaluru-Kolkata flight to Rs 6,319 this year from Rs 10,195 last year, as per the analysis.
The ticket price on the Chennai-Kolkata route has fallen 36 per cent to Rs 5,604 from Rs 8,725.
The average airfare for Mumbai-Delhi flight has dropped 34 per cent to Rs 5,762 from Rs 8,788. Similarly, there is a 34 per cent decrease in ticket prices on Delhi-Udaipur route to Rs 7,469 from Rs 11,296.
The decline is 32 per cent on Delhi-Kolkata, Hyderabad-Delhi, and Delhi-Srinagar routes.
According to Bajpai, the decline in oil prices, down 15 per cent this year, may have also contributed to this downward trend, offering travellers more affordable options during the festive season.
Currently, oil prices are slightly on the upward trajectory amid rising geopolitical tensions.
Meanwhile, there has been a hike in airfares of up to 34 per cent on certain routes.
While the ticket price has jumped 34 per cent on the Ahmedabad-Delhi route to Rs 8,758 from Rs 6,533, the rise is 33 per cent on the Mumbai-Dehradun route to Rs 15,527 from Rs 11,710, the analysis showed.
