Low airfares snip tour package costs by 15%

With declining air fares, tour operators have been witnessing a buoyant growth in holiday package bookings. Demand for them this season will see a growth of 50% or more against a growth of 30% last year, say experts. This is thanks to the huge discounts from established airlines as well as discounted inaugural fares by new airlines. In a holiday package of 4-7 days, air fares account for 30% of total costs. Tour operators say that with discounts on fares, the total package stands reduced by 10-15%. According to tour operators, the demand is for packages across all regions. However, the Far East and South-East Asia will be the most sought after destinations owing to the affordable pricing by airlines and hotels in those regions. “It will be a lot more cheaper to travel to Hong Kong, Thailand and Singapore compared to travel within any destination in India,” said Ghulam Naqshband, chairman of travel company‘Le Passage to India. According to Thomas Cook officials, the travel industry will see better results this year as there’s set to be a stupendous growth in outbound and inbound travel. “The drastic cut in air fares is stimulating the demand for travel. Almost all destinations seem attractive and there is a demand for holiday packages for all regions — from Mauritius to Australia, New Zealand, the Far East, South East Asia, and UK,” said Sunil Gupta, head of the leisure division at Thomas Cook (India). According to Delhi-based travel consultant Rabindra Seth, with the sudden increase in air seat capacity, there is excess supply which will stabilise over a six-month period. However, emergence of new low-cost airlines in the long term will continue to boost travel, as these airlines will bring with them, a new class of foreign and domestic travellers. Source: MEENA NICHANI - TIMES NEWS NETWORK