What you see is (not always) what you get - a ramble through airfare transparency
I read in a couple of newspapers last week, about SpiceJet and Indigo "simplifying" their fare displays to make them more user friendly. For the longest time, I've had issues with transparency by airlines, in how they price their tickets and, more importantly, how those prices are displayed.
Earlier this year, in January, I wrote about demystifying the fees and charges on a ticket, and much of that continues to hold. However, it is important to know that the newspaper reports aren't entirely true, as is the case with transparent fares. It does matter, how each airline projects their ticket prices. And what the news reports didn't mention, was that the new fare displays by SpiceJet and Indigo still aren't up to the standards of transparency that the other 3 "major" airlines in India (Jet, Air India, Go Air) seem to follow.
Which is the background to this post. Now, let us take a look.
As you can see, the base price from the choices includes fuel surcharges but builds into the overall fare. Fees and taxes are shown separately. However, if a user expects to pay Rs 9,800 for this ticket, he's in for a bit of a shock, since he'll have to end up paying Rs 11,085 - roughly 13% more than planned.
Almost the same as SpiceJet, with the fees and taxes separately shown. However, the options on the right show only the base fare, but when it is carried over into the overall pricing, magincally Rs 7,550 becomes Rs 9,800. So a user expecting to pay Rs 7,550 for the ticket ends up spending Rs 11,085 - or a whopping 47% more than planned.
Those are the two airlines that, according to the media, have made fares more transparent. Now let's take a look at the others.
Admittedly their display is pathetic, but if you expected to pay Rs 10,560 from the choices available, that's exactly what you end up paying. It's a different thing that all other "charges" (which includes fuel surcharge, fees and taxes) are lumped into "Other charges", but eventually you expected to pay Rs 10,560, and that's what you'll pay.
You pay exactly what the choices say you will pay. Just make sure you uncheck the insurance costs that are otherwise added automatically.
Air India
Again, the fare in the choices are the same as the final fare, though the actual fare could depend on the exact flight you select. For instance, the calendar on top shows the lowest fare for the day, which may not be the same for all flights on that date.
What do you think? Any fare-related experiences to share?
Earlier this year, in January, I wrote about demystifying the fees and charges on a ticket, and much of that continues to hold. However, it is important to know that the newspaper reports aren't entirely true, as is the case with transparent fares. It does matter, how each airline projects their ticket prices. And what the news reports didn't mention, was that the new fare displays by SpiceJet and Indigo still aren't up to the standards of transparency that the other 3 "major" airlines in India (Jet, Air India, Go Air) seem to follow.
Which is the background to this post. Now, let us take a look.
SpiceJet
As you can see, the base price from the choices includes fuel surcharges but builds into the overall fare. Fees and taxes are shown separately. However, if a user expects to pay Rs 9,800 for this ticket, he's in for a bit of a shock, since he'll have to end up paying Rs 11,085 - roughly 13% more than planned.
Indigo
Almost the same as SpiceJet, with the fees and taxes separately shown. However, the options on the right show only the base fare, but when it is carried over into the overall pricing, magincally Rs 7,550 becomes Rs 9,800. So a user expecting to pay Rs 7,550 for the ticket ends up spending Rs 11,085 - or a whopping 47% more than planned.
Those are the two airlines that, according to the media, have made fares more transparent. Now let's take a look at the others.
GoAir
Admittedly their display is pathetic, but if you expected to pay Rs 10,560 from the choices available, that's exactly what you end up paying. It's a different thing that all other "charges" (which includes fuel surcharge, fees and taxes) are lumped into "Other charges", but eventually you expected to pay Rs 10,560, and that's what you'll pay.
Jet Airways
You pay exactly what the choices say you will pay. Just make sure you uncheck the insurance costs that are otherwise added automatically.
Air India
Again, the fare in the choices are the same as the final fare, though the actual fare could depend on the exact flight you select. For instance, the calendar on top shows the lowest fare for the day, which may not be the same for all flights on that date.
Conclusion
Low cost carriers will try their best to obfuscate costs, so as to give users the feeling that they're paying less. I wrote about this in October last year, when I posited that low cost carriers aren't exactly low cost, particularly when you consider the incidentals. I continue to stand by that position. Airlines need to handle things like pricing with a lot more maturity, which is why it is essential to research fares in great detail - possibly using an aggregator or a travel portal first - before going ahead with the actual booking. In short, I think airfare transparency has a long way to go in India.What do you think? Any fare-related experiences to share?
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