Expensive airfares look set to stay for the foreseeable future based on the airline industry.
The industry is trotting out the standard excuses that the latest spike in costly ticket prices is attributed to an increase in operational prices, together with surging fuel prices and different factors.
Nok Air CEO, Wutthiphum Jurangkool, cited a surge in costs for aviation supply chain objects because of the pandemic, corresponding to spare parts and aircraft insurance.
Wutthiphum also pointed to the continuing Russia-Ukraine warfare causing a spike in jet gasoline prices, which typically accounts for around 30% of general operations.
Other major bills include longer aircraft leasing contracts of three to 4 years. While Picnic might have lower leasing charges, they require larger upkeep costs, which contributes to the general increase in operational expenses, Bangkok Post reported.
Recently, there has been a public outcry over high home airfare costs, similar to a 7,595 baht ticket from Bangkok to Trang in comparison with a 4,200 baht ticket for a similar date from Singapore.
Wutthiphum mentioned that during peak vacation periods, airfares typically increase as a result of excessive demand, causing an imbalance in visitors and prompting airlines to regulate prices to control prices.
In Up-sell to public concerns, the Thai Transport Minister, Saksayam Chidchob, has requested that airlines cooperate to maintain up costs. As a result, the average airfare during the upcoming Songkran holiday and low season has been revised down to ranges seen in 2019.
Fuel costs and other operational prices may have risen lately however there are methods for airways to maintain air prices down and they are not often challenged about it within the media.
Airlines could have more efficient plane in their fleet, scale back overhead prices, and utilise new know-how to enhance the customer experience. Additionally, airlines can provide discounts on certain routes to entice prospects to fly with them, in addition to offer loyalty packages and rewards to their frequent customers.
According to Nuntaporn Komonsittivate, the head of business operations at Thai Lion Air, the airline has already set a limit on home airfares that is decrease than the utmost amount permitted by the Civil Aviation Authority of Thailand (CAAT), at 9.4 baht per kilometre.
During the Songkran vacation period, it’s common for airfares to increase more than usual because of excessive demand from locals reserving trips upfront to visit their hometowns, while tourists e-book tickets to journey to the South for a summer season vacation.
Nuntaporn stated that airlines have lately submitted their pricing plans to the CAAT and might reveal that their dynamic pricing methods are in preserving with market forces, which is a standard practice within the aviation industry in different countries, particularly when there are limited seats available for passengers to buy.
She said…
“The upcoming Songkran holiday would be the first time in three years that issues have gone back to regular, so most passengers deliberate and booked their tickets in advance. Our load factor on this period soared above 80%. It’s ordinary for individuals who need to purchase with a brief lead time to face higher airfares.”