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ICICI Lombard Expert Blog
 

Air Travel Costlier with Turbulence in Indian Skies

May 15 2012

The Indian skies have been experiencing great turbulence for quite a while now. This is no good news because travellers must require paying a huge price for this. With the twin strikes of Air India’s long haul all across the globe and domestic flights of Kingfisher, the peak holiday season is going through a slowdown. The season had begun only recently this year but nothing impressive is on cards. It was a bad start and things initiated on a very bad note.

The strikes have resulted on a massive increase in prices of ticket for international as well as domestic travellers. Travellers are facing a challenging environment currently. Eleventh hour re-bookings on other airlines by travellers who were booked to fly Air India, has caused immense increase in hike of about 20-25 per cent in spot tariffs to Toronto, New York, London and various other European destinations. Allegedly, outbound tourists who were directed to the United States and Europe for their holiday are the known to be worst affected.

With most hotels and travel bookings prepared, outbound tourists stand to miss out on a lot of money both the ways whichever if they reserve themselves on a new aircraft or if they revoke their holiday policies completely. The air tariffs for domestic tour have also gone up by about INR 3000.

This is a very tough situation both for Indian tourism industry and travellers. Strikes and other internal discords among various airlines company have affected the Indian tourism industry adversely. Travellers might have to wait a lot before things get normal once again. According to the experts, a lot depends on how private and government oriented airlines company plan to resolve their internal differences and come to a favourable conclusion.

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