Book early to save is the flying mantra this season

In the runup to Christmas and New Year, the one-way airfare from Mumbai to Goa on low cost airline SpiceJet has jumped up to Rs 12,000 (up from current levels of about Rs 2,500), as a new balance is struck between supply and demand.

The fares like hotel room rates have always been a function of supply and demand but yield management has now become a critical tool for the loss-making airlines, who are trying to maximise the revenues from every single passenger. Airlines are now attempting to change buyer behaviour through their pricing strategies.

The message is unequivocal. “Book early to save money.” This is being reinforced by opening up seat inventories for sale six to nine months in advance and pricing them higher as the date of departure comes closer.

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