Delhi to Mumbai flight tickets cost Rs 19k one way. Exactly how do airlines decide your ticket prices?
The price hike in ticket prices has become a very common phenomenon now. Photo: Unsplash
Securing an affordable flight ticket without emptying your wallet can be as elusive as finding a plane without a wailing baby on board. Among all modes of transportation, flight ticket prices exhibit unparalleled fluctuations, turning the process into a financial rollercoaster ride.
If you are planning to travel from Delhi to Mumbai this week, for example, get ready to pay a hefty amount. Currently, the cost of a non-stop flight ticket for the next 24 hours is priced as high as Rs 14,000 or even higher.
Now there are various reasons why plane tickets have become so expensive. For a flight from Delhi to Mumbai, experts are pointing out two basic reasons:
- Summer vacations in June; and
- the suspension of Go First prices, which are causing airlines to increase their fare prices.
This comes after the Indian government asked airlines to exercise moderation and ensure a balance in the pricing of air tickets amid a spike in airfares on certain routes especially after the suspension of flights by crisis-hit Go First.
The price hike in ticket prices has become a very common phenomenon now. Similar cases of price hikes in prices were seen in the aftermath of the Odisha train crash.
But have you ever wondered why does your flight ticket cost the way it does? If the answer is yes, keep on reading.
It's important to note that the prices of plane tickets are not determined by a random algorithm.
Instead, there are a variety of factors that determines the price of your plane ticket.
Check out some of them:
1. The all-time favourite excuse: Demand and supply
The basic principle of supply and demand applies to flight tickets as well. If there is high demand for a particular route and a limited supply of seats, ticket prices tend to be higher. Similarly, during off-peak seasons or when there is lower demand, ticket prices may be relatively lower.
Say, if you're booking a flight ticket during the peak holiday season, such as Diwali or Christmas, when there is high demand for flights from major cities like Delhi to popular tourist destinations like Goa, ticket prices can be significantly higher compared to other times of the year.
2. Flight route and distance
The distance between the origin and destination airports plays a significant role in determining ticket prices. Longer flights generally cost more than shorter ones due to factors like fuel consumption and operational costs.
Say, a flight from Delhi to Jaipur, which is a popular domestic route with high competition, might have more affordable ticket prices compared to a flight from Delhi to a remote location like Leh in the Himalayas due to the longer distance and limited connectivity. Your ticket price is generally a balance between the two.
3. Airline competition
A competitive market is often good for the consumers. The level of competition on a specific route can impact ticket prices. When multiple airlines operate on the same route, they often engage in price competition to attract passengers, resulting in more affordable ticket prices.
Let's take an example: the highly competitive route like Bengaluru to Chennai, where multiple airlines operate frequent flights, there is often intense price competition. As a result, passengers may find lower ticket prices and various promotional offers. If you plan to book a flight ticket from Delhi to Deoghar, Jharkhand, you may see significantly higher prices, with Indigo being the only airline operating on this route. The ticket prices can soar as high as 25,000 rupees.
4. Seasonality
Prices can fluctuate based on seasonal variations and peak travel periods. For instance, during holidays, festivals, or vacation seasons (that's why Delhi-Mumbai price hike this week), ticket prices may increase due to higher demand. During summer vacation, everyone would like to book a ticket from Kolkata to popular cooler destinations like Darjeeling or Shimla. This can cause increased demand, leading to higher ticket prices to places like Bagdogra (the airport nearest to Darjeeling) and Chandigarh (the airport nearest to Shimla).
5. Time of booking
The timing of ticket purchase can affect prices. Generally, booking flights well in advance can offer more affordable fares. As the departure date approaches and the availability of seats decreases, prices tend to rise.
Booking a flight from Delhi to Bengaluru several months in advance; such as during a promotional sale or early-bird offers, can result in lower ticket prices compared to booking just a few days before the departure date. Or, in the worst-case scenario, booking on the day of travel.
6. Additional fees and charges
Your flight tickets can also increase if your airline is adding extra fees and charges for services like baggage allowance, seat selection, in-flight meals, and other amenities. These additional costs can increase the overall ticket price.
7. And finally, class of travel
The fare can vary based on the class of travel chosen, such as economy, premium economy, business, or first class (depending on the airline). Higher-class tickets generally come with additional amenities and services; resulting in higher prices.
If you book an economy class ticket from Mumbai to Dubai, it will generally be lower than a business class ticket on the same route, understandably.
Point to remember:
Airline pricing is a complex and dynamic process. Ticket prices can change frequently due to various factors, including market conditions, promotions, and airline strategies. We have compiled a list of reasons that we think can be the factors behind these charges.
DailyO reached out to various Indian airlines like Vistara, Indigo, Air India and Akasa Airlines, but none of them wanted to share the exact process these airlines go through to decide the price of your flight ticket.