Tuesday, 8 April 2008

Now, airlines levy charge for e-booking

Flying is fast getting more expensive. Within days of all domestic airlines hiking fuel surcharge, some carriers have added yet another surcharge to their ticket costs.

Low-cost carriers SpiceJet and IndiGo have started levying a web transaction (e-booking) charge of Rs 50 on each ticket, taking total levies to Rs 2,225 (for flights about an hour duration, excluding basic fares) and Rs 2,425 for longer domestic flights.

"Our cost of hosting the website by systems in US had gone up. We had been absorbing this but now felt that some part could be passed on. Hence the Rs 50 web transaction charge," said Kamal Hingorani, SpiceJet V-P. IndiGo has also levied the same charge. GoAir has had a 'service' charge of Rs 25 for a while.

IndiGo CEO Bruce Ashby said the airline had a flat transaction surcharge of Rs 100 for both call centre and website bookings for a year, starting from its launch in August 2006 and then suspended it.

"Some companies retained their surcharge for different booking channels, like call centres. Last Friday, we decided to reintroduce Rs 50 surcharge for website and Rs 100 for call centre bookings for each ticket," Ashby said.

Asked if this additional charge — coming on heels of a hike on fuel surcharge from Rs 1,650 to Rs 1,800 and Rs 2,000 (for short and medium sector) — could affect passenger flow, Hingorani said: "Primarily because of expensive jet fuel, the last quarter has been a bloodbath. We are hoping that summer vacation — from mid-April to June-end — sees a good passenger flow."

Airlines are now desperate to increase revenues from ticket sales. For instance, GoAir offers an advance seat booking facility for an extra charge of Rs 25.

No comments: