Tiger leads LCC summer price war
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Singapore-based low-cost carrier (LCC), Tiger Airways, announced on Tuesday that it would launch summer fares starting at about US$16 including taxes. The move is the latest in a series of marketing initiatives by Asia’s LCCs to stimulate demand in the face of declining passenger traffic.
“Tiger Airways is bucking the global aviation trend,” the Bangkok Post reported an airline statement saying, referring to declining demand for carriers worldwide.
Tiger’s rival, Jetstar Asia, is also slashing fares, saying that it will extend until 16 August a promotion promising to beat the cheapest price offered by its competitors.
Under the promotion, should a traveller find another published online fare cheaper than the lowest available on the airline’s website, the airline will beat the price by 10% if the customer makes an instant reservation by phone, the report said.
The region’s largest LCC and perennial deal promoter, AirAsia, is not being left behind, having launched its “Take me away” promotion, offering large discounts on summer fares. AirAsia is also offering a number of tickets starting from just 26 Malaysian cents (7 US cents) for travel within Malaysia, the report stated.
The battle for customers will undoubtedly benefit the consumer, as well as hotels and tourism service providers by and stimulate travel in the region. Whether the strategy can help boost the airlines’ profits amid the economic gloom remains to be seen.
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