Fare Hike during peak season
Recently every newpaper and channel was flashing the stories of how airlines are looting customers when there was more demand. When there was political storm in Maharashtra and Karnataka, all the local political leaders were running to Delhi to make their own position strong and in this fight, the airlines decided to cash out the high demand vs low availability. Mumbai Delhi economy ticket was sold at Rs. 30000 to Rs 40000 during that period.
The air prices may not be pinching you, me and many of us. However, what pinches is the mentality of cashing out to unreasonable levels during the peak demand period. The same mentality is observed even in the private travels business where they have point-to-point service (intercity buses). During Diwali, the fares are almost triple. Actually speaking the fares during normal demand period are set considering lower occupancy (may be 60 to 70%?) and if the bus is fully occupied, the travel is set to make good profit (to the tune of 30-40%?). Considering this if the price is tripled, the profit is sky rocketed at 100-120%. Is this fair?
Similar thing is observed when there's a strike in the public transport system. The autorikshaws cash out the day heavily. Not just during the strike, but also during the heavy rains!!
Yes, everyone is in the business to make profit and profit is driven by demand/supply principle. But shouldn't there be any fair practice followed by the business owners? May be like publishing the prices well in advance?
What would I do if I own the private travel bus service? Well... I don't know ...
The air prices may not be pinching you, me and many of us. However, what pinches is the mentality of cashing out to unreasonable levels during the peak demand period. The same mentality is observed even in the private travels business where they have point-to-point service (intercity buses). During Diwali, the fares are almost triple. Actually speaking the fares during normal demand period are set considering lower occupancy (may be 60 to 70%?) and if the bus is fully occupied, the travel is set to make good profit (to the tune of 30-40%?). Considering this if the price is tripled, the profit is sky rocketed at 100-120%. Is this fair?
Similar thing is observed when there's a strike in the public transport system. The autorikshaws cash out the day heavily. Not just during the strike, but also during the heavy rains!!
Yes, everyone is in the business to make profit and profit is driven by demand/supply principle. But shouldn't there be any fair practice followed by the business owners? May be like publishing the prices well in advance?
What would I do if I own the private travel bus service? Well... I don't know ...
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