While fares across the board increased 4 per cent last quarter, domestic fares within India increased more than any other fare type, with fares up 18 per cent. Conversely, fares to the EMEA region and Americas were flat last quarter, according to the most recent American Express Business Travel Monitor. In comparison, in the Asia Pacific region fares overall were up by 2 per cent and domestic fares were up by 4 per cent.
“High inflation rates and network disruption narrowing supply in the market have increased fare types across the board.
Economic pressures and supply variance has meant that LCCs have also increase airfares, which, has pushed the price of domestic travel up significantly, particularly during the last quarter,” according to Sandeep Shastri, Vice-President and General Manager of Global Business Travel, India. Fares from India to the Europe, the Middle East and Africa (EMEA) sector remained flat last quarter, though has seen a significant increase in fares (9 per cent year-on-year in fares compared to the region’s 3 per cent), which can be attributed to high inflation rates, as well as lack of supply and rising fuel costs. The Eurozone economic uncertainties at the end of last year were responsible for fares to this region remaining flat., according to a release. Likewise, the weakness of the US economy has contributed to fares from India to the Americas being flat in the last quarter. Variances in fare prices to the Americas also had a plateau effect on fares to the region in the last quarter. In India, the airfares to Americas grew marginally by 2 per cent compared to the same period in 2010.
Click here to see the original article>Economic pressures and supply variance has meant that LCCs have also increase airfares, which, has pushed the price of domestic travel up significantly, particularly during the last quarter,” according to Sandeep Shastri, Vice-President and General Manager of Global Business Travel, India. Fares from India to the Europe, the Middle East and Africa (EMEA) sector remained flat last quarter, though has seen a significant increase in fares (9 per cent year-on-year in fares compared to the region’s 3 per cent), which can be attributed to high inflation rates, as well as lack of supply and rising fuel costs. The Eurozone economic uncertainties at the end of last year were responsible for fares to this region remaining flat., according to a release. Likewise, the weakness of the US economy has contributed to fares from India to the Americas being flat in the last quarter. Variances in fare prices to the Americas also had a plateau effect on fares to the region in the last quarter. In India, the airfares to Americas grew marginally by 2 per cent compared to the same period in 2010.