Airlines see space to grow share of non-passenger revenues

Bangalore: As airlines fight a bitter fare war, they are trying to increase ancillary revenues to be able to afford lower fares to passengers. Especially, the low cost carriers.
In the latest move in this direction, budget carrier Air Deccan has tied up with online travel portal Travelguru to offer hotel booking and holiday packages on its website, which gets 12 million hits per month.
The travel portal, which went live on Air Deccan’s website 20 days back, has already done business worth Rs 5 lakh, and this includes rooms booked in five star hotels like Taj and Oberoi. Through this exclusive tie-up, Air Deccan intends to earn commission on every room sold on its website.
In a similar move, rival SpiceJet Ltd had tied up with Yatra.com some time back. Both the no-frill carriers are looking at raising their non-passenger revenues to remain competitive in the market.
22/02/07 Praveena Sharma/Daily News & Analysis

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Categories: low-cost gl news feb 2007