Flight Booking Increase, Travel Industry Rejoices

01Oct10

With an increasingly competitive atmosphere in the air travel industry a number of airline companies, particularly those who focus on sales of budget flights, are trying to make prices even cheaper then ever. Added to this passengers are feeling more confident in booking flights following the problems with the ash cloud and possible strike action earlier this year. The combination of these factors has lead so some much needed growth for the travel industry.

This spirit of competition means that many airliner are creating ever more elaborate packages, all in deals, or perks, to give them an edge over their competitors. Even without the increase in perks or packages to appeal to customers, airline analysts have noted that there has been a decrease across the board when it comes to standard fares, regardless of if they were premier or budget orientated airliners.

The increase in booking is a good sign for those overseas (and even in the UK) who rely on tourists to support their businesses. Hotels, campsites, resorts and car rental companies are reliant on trade from the UK. Many have witnessed reduced takings over the last few years as more and more Brits stay at home. The rise in ‘staycations’ is good for the UK tourism industry but not for those overseas.

A shift in attitude for how customers and fares are handled is also perking sales. Instead of the business model, where the attempt is to get customers to pay more for travel to a ‘fill every plane’ plan, making sure that the maximum seats are filled up for every flight. Occupancy rates are a major concern for airliners, particularly budget ones, and they must make sure that their occupancy rate remains in the 85% to 90% region each flight, to remain profitable.

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