The global pandemic has had a devastating effect on the travel industry as a whole, but it's been especially hard for the airlines. While this is bad news for the airline industry, it's good news for travellers.
FlySafair’s chief marketing officer, Kirby Gordon, has gone on record saying airlines are effectively subsidising domestic flights at the moment. He goes on to say that prices are at a particularly low point thanks to the laws of supply and demand.
Although airlines are barely making ends meet most of them are keeping their planes in the air hoping to pay their operating costs and contribute something towards their fixed costs.
To make matters worse, a weak global economy means the overhead costs for airlines are skyrocketing.
In this case it would seem logical to put up the prices, but that’s not how airline pricing works. According to Gordon, airlines are ‘price-takers’. That means they can only charge what the market dictates.
In short, when demand is high, ticket prices soar, but when the industry’s quiet, like now, they drop down again. That means most airlines offered greatly reduced prices during the pandemic and will continue to do so until things get busier.Low prices mean abundant opportunities
At the moment, prices for air tickets are between 30 and 35% lower than they were last year.
Domestic travellers should grab at this opportunity to explore their country like never before.
When you book a domestic flight now, not only are you helping yourself to a cheaper holiday, but you’re also helping the economy and the airlines. Every flight booking you make is of value to the industry and it’s also helping to drive prices back to normal.
Now’s the time to take advantage of flysafair flights to Durban
, Cape Town, Johannesburg, Port Elizabeth, George and East London.On the up and up
Gordon’s buoyed by the fact that South Africans are opening their eyes to the joys of domestic travel, which is so important to our economy, contributing millions of jobs and over R400 billion to the country’s GDP.
The African Development Bank agrees that cross-country explorations are an excellent starting point towards economic recovery for the country.
So far, domestic airlines have managed to bring over 75% of their capacity back online. That means that there’s still 25% of unused capacity that isn’t contributing to their operating costs.
Not only do these seats mean unrealised income for the tourist and airline industries, but they also represent missed opportunities for the South African traveller.Now’s the time to take to the air
Right now, domestic air travel presents a host of win-win situations for everyone concerned, not least of all the savvy traveller. Those looking for a change of scenery as well as a great deal, should book their travels right away before things get back to normal.
Although the pandemic’s not over yet, opportunities abound for a safe, affordable, and socially-distant holiday in your own country.