Airfares hike may lead to dip in demand during peak season

Travel Agents are hoping that they would be able to salvage the situation by offering cheaper deals on hotels to offset the impact of the surge in airfares

Travel News
Travel News

The hike in air fares due to surge in fuel prices has come as a double whammy for the travel agents. Travel companies are now worried about consumer sentiments which have already been subdued due to weak currency. Both domestic and international air fares have increased by 15 to 30% due the rise in prices of aviation turbine fuel. 
 
Industry experts say that the effect of the depreciating rupee, the hike in the aviation turbine fuel prices, significant pre-bookings via promotions earlier in the year, combined with the fact that all airlines had reduced their prices during the off season, have all led to a sudden rise in the airfares at this time.
 
The surge in air fares has come just at the start of the festive season. The cost of flying from Delhi to Mumbai has gone up to Rs 10,000 from the level of Rs 6,000-7,000. 

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