Flights Sector Selection for Boosting Cheap Air Tickets Sale
It might seem quite easy to talk at length about airlines financial health from a macroscopic perspective but it is also a fact that making the turnaround lies in doing small things which together add up to something substantial. Selection of the right flying sectors might be a strategic decision dictated by a number of factors, but it is also a factor which is most conveniently overlooked while discussing or considering the financial health of the airline. Besides the route selection, the program or schedule of operating some fixed number of scheduled flights are one of the key determinants of providing the cheap air tickets to the customers and making profits at the same time.
Let us have a look at what these material factors are which can help in right selection of the routes:
1.Demand: Naturally, this is the most important factor since more is the demand for travelling between the two particular destinations, more is the space of accommodating flights. However, the high demand sectors might already have good competition and therefore, the new entrant might not be able to take the price it wants. Rather, it has to go by the prices which are already ruling the markets. If the cheap air tickets are already being provided, it has to go with the market and provide flight booking at those very rates. So, these might not be as profitable unless the number of flights is increased or there is considerable product differentiation and value addition which can turn the demand in favor of the airline.
2.Government policy: The government policy on providing the flights to certain routes can also dictate the route selection. In order to provide nationwide connectivity, even to the otherwise remote and the inaccessible areas and provide the residents of those areas a way to fly to some select destinations, the government may require the airlines to provide flights to these areas as well. This could be done for strategic reasons in order to allow for better interaction of the people living in far off areas with the rest of the country. Also, the government may or may not stipulate the number of flights in a week, a fortnight or a month, which need to be operated by a particular airline to that area.
3.Future prospects: There might be some sectors which might not be very lucrative for now but hold good potential in the not-so-distant future. These areas might already be having latent demand for cheap air tickets but might not be getting these. So, the airline which would be able to spot this gap in the supply when the latent demand already exists or has good assessment of future prospects, is likely to make selection of the sectors and number of flights as per their assessment.
Let us have a look at what these material factors are which can help in right selection of the routes:
1.Demand: Naturally, this is the most important factor since more is the demand for travelling between the two particular destinations, more is the space of accommodating flights. However, the high demand sectors might already have good competition and therefore, the new entrant might not be able to take the price it wants. Rather, it has to go by the prices which are already ruling the markets. If the cheap air tickets are already being provided, it has to go with the market and provide flight booking at those very rates. So, these might not be as profitable unless the number of flights is increased or there is considerable product differentiation and value addition which can turn the demand in favor of the airline.
2.Government policy: The government policy on providing the flights to certain routes can also dictate the route selection. In order to provide nationwide connectivity, even to the otherwise remote and the inaccessible areas and provide the residents of those areas a way to fly to some select destinations, the government may require the airlines to provide flights to these areas as well. This could be done for strategic reasons in order to allow for better interaction of the people living in far off areas with the rest of the country. Also, the government may or may not stipulate the number of flights in a week, a fortnight or a month, which need to be operated by a particular airline to that area.
3.Future prospects: There might be some sectors which might not be very lucrative for now but hold good potential in the not-so-distant future. These areas might already be having latent demand for cheap air tickets but might not be getting these. So, the airline which would be able to spot this gap in the supply when the latent demand already exists or has good assessment of future prospects, is likely to make selection of the sectors and number of flights as per their assessment.