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Airfares: How Airlines Price Your Flight Ticket!

Looking for flights can be great fun, especially when you land a good deal. But sometimes it’s rather frustrating.

You can spend hours on the internet, trying different websites, but reasonable airfares are nowhere to be found.

Trying to figure out an airfare pricing system can seem completely random. But what seems random, is actually the airline’s dynamic pricing, using a strategy called Airline Revenue Management.

The system uses an algorithm that adjusts fares by using information like past bookings, remaining seats, average demand for certain routes and the probability of selling more seats later.

But before we get into the details of how exactly your ticket is priced, let’s take a look at how this system came into being.

The Evolution Of Airfare Pricing

Today’s pricing system is a far cry from the initial years of commercial airline pricing which was tightly regulated by the government.

Most international routes were operated by a single national carrier and the lack of choice resulted in uncompetitive fares for consumers.

Deregulation, however, changed all that, removing government controls over routes, airfares and market entry for new airlines.

As years went by, technology started coming into play and eventually, all airlines started using it to price their tickets according to the data available.

Artificial Intelligence is today the major driving force that airlines use to price tickets, based on the buying behaviour of different types of air travellers (Leisure Travellers & Business Travellers).

Basic Price Of Your Ticket

The price of your ticket consists of a number of things:

  • Base Fare
  • Taxes and airport fees
  • Fuel surcharge
  • Service fee to issue
  • Food
  • Seat selection
  • Baggage

The last four are sometimes optional (especially for low-cost airlines) where you pay for them on top of the ticket price if you want them included.

With the traditional airlines, and for long-haul flights, these things are usually included in the ticket price.

Factors Affecting Your Airfare

1.Time

If you’ve travelled a few times by air, you must have noticed how airfares are usually at the low end, 3 to 4 months before the flight’s departure.

However, that price increase as the departure date approaches.

Leisure Travellers are flexible on dates but not on prices, while it’s the complete opposite for Business travellers.

Airlines try to attract leisure travellers by pricing the ticket at a cheaper rate so that they can fill up as many seats as possible.

The airline knows that as the departure date gets closer, business travellers will buy tickets at the last moment regardless of the price because they have to reach their destination at a specific date and time.

This is where airlines play it smart and price the seats higher.

For example, A Delhi-Mumbai flight ticket that normally costs Rs 6,000-8,000 could go up to nearly Rs 15,000 if you purchase it two days from the date of departure.

2.Competition

Fares to smaller cities with little airline competition are typically more expensive than fares to big cities with lots of different carriers.

3.Distance

The distance between two places plays a major part in deciding the airfare. The farther you fly, the more you’ll pay!

This is often true in most cases, however, on some routes this may be applicable.

The popularity of the route plays a huge part in this.

4.Demand/Supply

Airlines know when people want to fly, such as summer and major holidays. Which is why they raise prices during these peak travel periods, knowing people will pay.

Also, since there are more seats available in the start the prices are cheaper. But as the seats fill up , the supply of the seats reduces and the prices are kept high.

5.Load Factor

Airlines want to fill their planes and maximize profits. They do this by calculating a plane’s load factor.

Essentially, this is the percentage of seats sold on a flight!

Airlines don’t want to fly empty seats so they’ve become extremely efficient in calculating this load factor which helps them determine the price of a ticket.

They exactly know when and where we will fly, round the year.

6.Day/Timing Of The Flight

You’ll usually find a cheap ticket on the days when people are less likely to travel during the week. The least popular days to fly are usually Tuesday, Wednesday and Saturday.

Using the same concept, airlines price their tickets at a lower rate at not peak timings. Which means that if you want a cheap ticket you should choose a flight taking off at dawn, during meal times or overnight flights.

7.Flight Route

Sometimes, a connecting flight can be a lot cheaper than a nonstop flight.

For the airlines, nonstop routes are a gamble, as they require a consistent demand for travel on that exact route.

This isn’t a problem on popular routes or for flights to major cities, but usually on less compelling routes where demand could be an issue.

However, connecting flight routes solve this problem by funnelling all that traffic.

Instead of flying a half-empty plane, airlines fly a full plane to the connecting cities through the connecting flight, where they either join other passengers to fly to their destination or board a tiny regional jet for a short flight.

8.Oil Prices

As oil prices rise, so do jet fuel prices.

30% of the airline’s cost goes on fuel expenditure, which airlines cover by adding  ‘fuel surcharge’ on our airfares.

For now, it hasn’t affected us that much (Due To Competition From Low-Budget Carriers) however, airlines do feel the sting of rising oil prices.

Now that you know how air tickets are priced, Read more about “How To Save On Your Airfare”!

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17 Airlines Keen To Operate From Kannur International Airport In Kerala!

According to the Chief Minister of Kerala, Mr. Pinarayi Vijayan, 11 international and 6 national airlines have expressed their willingness to conduct services from Kannur International Airport.

The international airlines include Emirates, Etihad, Fly Dubai, Air Arabia, Oman Air, Qatar Airways, Gulf Air, Saudia, Silk Air, Air Asia and Malindo Air. Domestic carriers such as Air India, Air India Express, Jet Airways, Indigo, SpiceJet and Go Air will operate out of Kannur International Airport.

Mr Vijayan was speaking at the annual public meeting of the Thiruvananthapuram International Airport, where other issues related to the Kannur airport were also discussed.

Here are the key points from the meeting-

  • Authorities are planning to increase the length of Kannur airport’s runway from 3050 meters to 4000 meters. The formalities of acquisition of lands are in progress. The CM said that Kannur Airport will become the largest airport in Kerala.
  • The Kerala police will have the temporary responsibility of immigration. Air India Services Limited and Celebi Ground Handling have the responsibility of ground handling services.
  • Construction of terminal building and arranging facilities inside terminal have been completed.
  • Monti Carlo Limited has been given Rs 113 Crore to construct the International Air Cargo Complex, 4 storeyed airport office building, 5 storeyed CISF residence building and the approaching roads to the airport. They have also been given the task of lighting and decorating the airport.
  • 29 people in the families who lost houses when the government acquired lands were appointed in different positions. The remaining people in this category will be appointed through Air India ITSL, ground/cargo handling agency of the airport.
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Airlines Set To Connect Mumbai With 6 New Global Destinations!

There is some good news for air travellers flying from Mumbai!

Passengers travelling from the city will now be able to experience a seamless connectivity to at least 6 new destinations across the United States, Europe and the United Kingdom starting next month.

America’s third largest carrier, United Airlines will be offering US-bound passengers from Mumbai more seats, as it plans to deploy a bigger aircraft as part of the airline’s winter schedule in India

Air India, Jet Airways and GoAir will be starting new flights to international destinations from the Chhatrapati Shivaji International Airport from October.

Apart from this, foreign airlines such as Air Italy and Uzbekistan Airways will be entering the Mumbai aviation market for the first time ever.

Here are all the details about it:

  • Air Italy will start five-times-a-week non-stop service from Mumbai to Milan from 31st October 2018
  • Uzbekistan Airways will have three direct flights in a week between capital city Tashkent and Mumbai from 30th October 2018.
  • Air India, which is the only Indian carrier flying directly to the US, will commence its direct flight services from Mumbai to the German city Frankfurt and New York’s JFK Airport from 1st October 2018 and 4th October 2018.
  • Mumbai will also get direct connectivity to Phuket in Thailand and Male in Maldives with the budget carrier, GoAir, set to fly to these destinations from 12th October 2018 and 14th October 2018.
  • Jet Airways will be connecting Mumbai with Manchester in the UK with five-times a week flight services starting 4th November 2018. It will be the airline’s 21st international destination and fifth non-stop service to and from the UK.
  • United Airlines will operate its latest higher seating capacity aircraft, a Boeing 777-300ER, between Mumbai and New York/Newark route from 1st October 2018, replacing the 777-200ER, which is currently being operated on the route.
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10 Best Airports In The World For Shopping!

For some travellers airport shopping may mean discounted foreign liquor or high-end chocolates and sweets, but frequent international fliers know well that hubs around the globe are stepping up their retail game.

A little retail therapy can make hours spent waiting at an airport fly by.

Why waste valuable time dragging heavy bags around the city when all of your shopping needs can be fulfilled at the airport on your way home?

To intrigue the inner shopaholic in you, here are the 10 best airports in the world for shopping

1.London Heathrow Airport, England

Europe’s busiest airport boasts of a 42000 square feet shopping space which is spread over 4 terminals.

You will find everything from pocket-friendly goods to premium products from world-renowned brands.

Things like perfumes, skin care products, alcohol and chocolates are available at all terminals but if you’re looking for items from brands like Burberry, Dior, Gucci and Cartier visit the airport’s Terminal 3.

Terminal 5 of the airport showcases the best of British design and craftsmanship with brands like Mulberry, Paul Smith, Links of London, and Smythson showcasing their products to departing passengers.

2.Singapore Changi International Airport, Malaysia

Singapore’s Changi Airport has been awarded the best airport in the world for the past 6 consecutive years, thanks to its beautiful architecture, efficient operation, luxurious amenities, dining and shopping.

You’ll get to enjoy products with prices which are comparatively cheaper than most airports around the world.

If you have time to spare, you can indulge yourself at the duty-free shops which are located in Terminal 1.

It has the widest range of beauty and skincare products amongst Asia Pacific airports, with more than 190 international brands on display.

You can buy electronic items like printers, laptops ,computer accessories from renowned brands and is a paradise for gamers with an extensive range of software and hardware from Sony PlayStation on display.

A wide selection of the world’s most premium wines and spirits is available, with an alcohol sampling bar where you can taste and buy.

3.Hong Kong International Airport, China

The city has a culture of shopping, which you can experience at the airport as well.

‘SkyMart’ in Terminal 1 and ‘SkyPlaza’ in Terminal 2 have the kind of retail space which would make any shopaholic jump with joy.

SkyMart has a “Downtown Pricing Guarantee,” so the price you pay at the airport will not be higher than what you would pay in the city.

The airport is not only about high-end products either. There’s a good mix of both premium and locally branded products on display.

4.Hammad/Doha International Airport, Saudi Arabia

If you have a long-haul flight with a layover in Doha, time will fly by thanks to the wide array of restaurants and shops in ‘Qatar Duty-Free’ located inside the airport.

It consists of a shopping plaza spanning over 40.000 square meters and comprising more than 30 fine dining establishments and 70 luxury retail stores.

Products like leather goods, designer bags, watches, jewellery, perfumes, souvenirs, travel gifts etc are available apart from the usual tax-free tobacco and liquor.

Luxury brands like Burberry, Carolina Herrera, Giorgio Armani, Godiva, Harrods, Hugo Boss, Ralph Lauren & Rolex have their goods displayed for passengers.

It’s a bit on the expensive side but the experience is defiantly worth it!

5.Amsterdam Schiphol Airport, Netherlands.

Schiphol airport in Amsterdam is the perfect paradise for shoppers on a tight budget.

It is regarded as one of the best airports for shopping because of its unique offers which run mostly round the year.

With discounts and promotions such as ‘Buy 2 Get 3 Free’ on premium products, it can make any passenger think twice before moving to the boarding gate.

You can check out the latest offers and discounts at Schiphol Airport’s Official Site.

6.Incheon International Airport, South Korea

South Korea’s main international gateway in Seoul, the Incheon International Airport, is most popular for items such as perfumes, cosmetics, alcohol and cigarettes.

It’s regarded as the best one-stop shopping place for world travellers.

The shopping plaza is located in Terminal 1 and has more than 200 popular brands located in one place.

It offers reliable products at reasonable prices and the best quality services.

7.Dubai International Airport, UAE

Dubai International Airport has been one of the top three (based on total sales) duty-free retailer for a couple of years now.

Alcohol, perfumes and gold are the must-buys in the Sheikh Rashid Terminal (also known as the Concourse) which is home to majority of the shops.

Open 24/7, there’s 58,125 square feet of retail heaven with products from premium brands up for grabs.

8.Zurich International Airport, Switzerland

Zurich Airport calls its shopping area ‘Paradise’, and it might well be, based on the reviews from frequent flyers around the world.

Switzerland is one of the last places in Europe where fliers can still buy duty-free goods.

Perfumes, cosmetics, alcohol, tobacco and, of course, fine Swiss chocolates can all be pre-ordered via their website if you’re all about the bargains.

If you’re in the mood for browsing, you’ll be in for a treat, with various Swiss brands displaying their products.

Also, if you purchase stuff worth 250 Swizz Franc or more, you can check-in through their ‘Fast Track’ security queue.

9.Vancouver International Airport, Canada

Vancouver International Airport has often been voted the best airport in North America.

And one of the main reasons the airport is so highly regarded is the nearby designer outlet mall – McArthurGlen Designer Outlet.

Fashion savvy travellers can browse designer names like Armani, Coach and Banana Republic along with world-famous brands which are situated alongside top-notch restaurants and stylish coffee houses.

Prices are also reduced (up to 70%), making Vancouver Airport all the more attractive to the savvy spender. The outlet is currently being expanded to house another 35 new premium lifestyle brands.

10.Paris Charles de Gaulle Airport, France

Being one of the largest airports in Europe, Paris’ Charles de Gaulle airport may not be the most attractive, but it does house a sea of shops.

And this being Paris, the fashion capital of the world, exclusive brand names and designer boutiques that can be seen on the streets can also be found on the airport’s three terminals.

However, Terminal 2 is perhaps best if it’s luxury you’re after. It is home to upmarket brands such as Hermès, Salvatore Ferragamo and Longchamp.

Now that we’ve got you excited about shopping at the airport, why not install the AirWhizz App. Get all the information about different airport shops along with real-time flight updates, airline information and much more on your fingertips and Fly Stress-Free!

 

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Cochin International Airport Bags UN’s Environment Award!

Cochin International Airport has once again made India proud!

Indian airports have been bagging international awards for the past few years and the latest to join that list is Kerala’s Cochin International Airport.

The Airport has been awarded for Entrepreneurial Vision by United Nations (UN) at the “Champions Of Earth” award ceremony for its leadership in the use of sustainable energy.

According to the United Nations Environment Programme (UNEP), Cochin International Airport is showing rest of the world that the ever-expanding network of global travel does not have to harm the environment. UNEP further stated that the first fully solar-powered airport of the world is proof that green business is good business.

UN environment Executive Director Erik Solheim along with his team had visited the international airport and seen the solar power plant and called it a leading example among global airports.

In 2015, CIAL became the first airport in the world to be completely powered by solar energy. They started with a 100 kilowatts pilot project in 2012. Today, the capacity of CIAL is 29.5 megawatts of solar energy, providing 120,000 units of power every day.

The airport is 100 % reliant on solar energy, from powering conveyor baggage belts to digital systems installed at the airport.

Kochi airport is the biggest and busiest airport of Kerala and the fourth busiest airport in India in terms of international traffic.

A lot of its international passengers come from the Gulf countries. Around 10 million people passed through Kochi airport last year. Of these, 5.5 million were international passengers.

The Champions of the Earth award is the highest environmental recognition of United Nations, celebrating exceptional figures from the public sectors as well as private sectors and also from civil society, whose actions have had a positive impact on the environment.

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Commercial Flight Operations To Start From Hindon Air Force Base!

There is some good news for air travellers in and around New Delhi!

Airports Authority Of India (AAI) has allowed commercial airplanes to operate at the Hindon Air Force Base in Ghaziabad from January 2019.

AAI has not only finalised plans for the Rs 45 crore civil terminal at the air force base but has also subsidised the regional flights that will operate from Hindon. They have put a cap of Rs 2500 per hour on the airfare.

All regional aircraft (seating capacity is less than 80) which operate from Delhi’s Indira Gandhi International Airport(IGIA) will be shifted to the new terminal in Hindon, to free up the slots for regular flights.

Flights under the Regional Connectivity Scheme (RCS) & small private jets will operate from Hindon until the expansion of IGIA which is supposed to be completed by September 2022.

Here are all details about the new airport terminal at Hindon Air Force base:

  • The terminal is spread across 3500 square meters.
  • It will have the capacity to handle 300 passengers and 150 arrivals /departure flights per hour.
  • The terminal will have all modern facilities like a huge check-in area, security-hold area, baggage handling system and commercial shops.

Altogether AAI will be 42,069 square meters of land will be taken on lease for the development of the airport.

As of now, major airlines such as IndiGo, SpiceJet, Jet and Air India operate RCS flights and will operate from Hindon as well.

It has not been easy for AAI to make this a success. There were a lot of issues with the farmer unions for acquiring the land to build the terminal facilities.

After many months of negotiations with the unions, AAI has finally come to an agreement on their terms and the project has started in full flow.

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Liquids Over 100ml Limit Might Soon Be Allowed In Hand Baggage!

Air travellers in India may soon be able to carry liquids, such as shampoo, in their hand Baggage on Indian flights.

Ministry of Civil Aviation might soon test liquid bomb detectors at Indian airports, which will allow passengers to carry liquids more than 100 ml, which is currently the limit.

However, the move is still in the initial stage and might be implemented 6 months from now. Recently the civil aviation ministry reviewed presentations by some European firms on the latest technologies that are being used in order to scan liquids at airports.

According to reports, the ministry will conduct the trial at major Indian airports once the technology provider has been shortlisted. After completing the trial, the ministry will issue a list of liquids that are allowed in the hand baggage. However, liquor will not be allowed in hand baggage.

Any air passenger carrying liquid will have to put the container in the detector and, within five seconds, the system will be able to detect the percentage of explosives in it. The detector gives 4-5 levels of threat scenario, and on the basis of that, liquids will be allowed to be carried in the hand baggage.

The concept of carrying liquids in hand baggage is not new as some airports in Europe and in the US have been testing bottled liquid scanners, even though they still restrict passengers on the quantity of liquid that can be carried.

Moreover, in order to save time, now some airports are also experimenting with scanners that can check liquids in bottles inside the carry-on baggage.

Once the ministry of civil aviation decides to use this technology, the Bureau for Civil Aviation Security (BCAS) will have to frame the guidelines.

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Quick Baggage Scanning Will Soon Be Implemented At Chennai Airport!

Passengers flying out of the domestic terminal at the Chennai Airport will soon be relieved of the tiring task of scanning their baggage through standalone machines.

From December 2018, a passenger entering the domestic terminal will have to just drop off their baggage at the airline check-in counters and the ‘Inline Baggage Scanner’ will examine them.

According to Airports Authority Of India (AAI), they will do away with the existing standalone machines in three months as the installation of four new inline scanners has begun.

For now, passengers at the domestic terminal have to stand in queues, carry their suitcase and put them in the standalone baggage scanners, after which they are allowed to go in the Check-in queue. However, with the new system in place they can directly go to the counter and drop of their bags.

The new inline scanners have a capacity to scan 1,200 bags an hour. Also, they are the latest ones, which are equipped with CT X-ray and CT Scan systems which can easily detect explosives. There will be various levels of scanning in these new machines, which will ensure better security.

There are 14 screeners certified by the Bureau of Civil Aviation Security (BCAS) who will monitor the screening of baggage.

The four inline scanners in the international terminal will also be upgraded in the next three months, as per the latest requirements by the BCAS.

AAI officials expect the new system to ease operations at Chennai Airport’s domestic terminal that chokes with thousands of passengers, especially during peak hours.

Chennai Airport handles nearly 33,000 people and about 500 aircraft movements on a daily basis.

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