Air passengers have a reason to be happy this Diwali season, as average airfares on many domestic routes have dropped by 20-25% compared to last year, according to an analysis.
The decrease in air ticket prices is due to increased capacity and a recent fall in oil prices.
Airlines use dynamic pricing algorithms that raise fares as demand increases, especially during busy holiday periods like Diwali. This festival is one of the biggest in India, and many people travel to be with family or take holidays. The rise in demand often leads to higher prices as airlines adjust fares based on the number of bookings.
An analysis by the travel portal ixigo revealed that average airfare on domestic routes has decreased by 20-25%.
“Last year, airfares around Diwali soared due to limited capacity, mainly because of the suspension of the Go First airline. However, this year, we’ve seen some relief as more capacity has been added, resulting in a 20-25% year-on-year dip in average airfares across key routes for the last week of October,” said ixigo Group CEO Aloke Bajpai to news agency PTI.
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These prices reflect the one-way average fare based on a 30-day advanced purchase date. For 2023, the period considered is November 10-16, while for last year, it was October 28-November 3, which is around Diwali.
The largest decline in average airfare is 38% for a Bengaluru-Kolkata flight, with prices falling from Rs 10,195 last year to Rs 6,319 this year.
On the Chennai-Kolkata route, fares have decreased by 36% to Rs 5,604 from Rs 8,725.
The average fare for a Mumbai-Delhi flight has dropped by 34% to Rs 5,762 from Rs 8,788. Similarly, there is a 34% decrease in ticket prices for the Delhi-Udaipur route, which now costs Rs 7,469, down from Rs 11,296.
There is also a 32% decline in fares on the Delhi-Kolkata, Hyderabad-Delhi, and Delhi-Srinagar routes.
According to Bajpai, the fall in oil prices, which have decreased by 15% this year, may have also helped drive this trend, providing travellers with more affordable options during the festive season.
Currently, oil prices are slightly rising due to increasing geopolitical tensions.