Saturday, March 31, 2012

Budget airlines stimulate more frequent travels in Asia

It has been just eight years since Singapore's first budget carrier, Valueair, took off. Now there are many budget airlines in and out of Singapore offering many quick weekend holidays in nearby countries with a relatively reasonable price. Just to name them: Tiger Airways, Jetstar, Firefly, Lion Air, Air Asia, Cebu Pacific, etc. And the boom of low cost carriers is fueling a travel boom in South East Asia which in turn is fueling more investment in budget airliner business. The travel boom is also fueled by many online resources such as TripAdvisor.

"Our flights to Bangkok, Hong Kong, Kuala Lumpur, Hanoi and Ho Chi Minh City are hugely popular and following our initial entry to these cities, we have steadily increased capacity as demand has grown" says a Tiger Airways spokesman. Budget airliner Tiger Airways alone fly from Singapore to Bangkok 35 times a week and 20 times weekly to Ho Chi Minh City. Another budget airliner, Jetstar, flies 3 times a day to Bangkok and Hong Kong.

Low fares are definitely a big draw. These cheaper flights do not only attract leisure travelers but many business travelers also fly on budget airliners to cut costs significantly. And as the popularity of the budget airliners increased they have started to cover less popular cities such as Kochi in India, Davao in Philippines and Daka in Bangladesh.

Since these airliners usually offer discounts on selected days, there is a rising trend to buy a very deeply discounted ticket in the far future and then take holidays when these times nears. This way, you can travel to nearby South East Asian countries like Thailand, Malaysia, Indonesia and Vietnam cheaply and many times in a year:

"Low fares are known to simulate more frequent travel and first time travel. The low-cost carrier market is still growing in Asia where it is just over 20 per cent, compared to more mature markets such as United States and Europe where penetration is around 50 per cent" says a Jetstar spokesman.

Source : The Straits Times


  1. Air line can increase their budget by offering cheap flights they can collect lot of capital to invest in new airbus.

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