In India, Full Service Carriers (FSC) still carry the bulk of business travellers. Nearly half of FSC clients travel on business (47%), and 42% do not pay for their own tickets according to a new Centre for Asia Pacific Aviation survey. In the case of…
In India, Full Service Carriers (FSC) still carry the bulk of business travellers. Nearly half of FSC clients travel on business (47%), and 42% do not pay for their own tickets according to a new Centre for Asia Pacific Aviation survey. In the case of Low Cost Carriers (LCC), only 29% of passengers are business travellers, with 21% holding sponsored tickets.
Not only do FSC travellers, or their sponsors, pay a premium of about 60% for the privilege of flying with an FSC. As previously revealed in Part 1, FSC clients also have a low propensity to book online, and will generally buy through a travel agent (61%, as compared to only 21% using the internet).
These findings reveal some uniquely Indian features in the domestic FSC market which may explain such consumer behaviour. “Grey” cash in the Indian market may be influencing the choice of FSC point of sale. However, it can be assumed that even apart the more “hands-off” behaviour of the more affluent travellers in India (where there is often someone else to do the work), there is a significant overhang of prestige attached to travelling on FSCs.
If this is true, the message should be loud and clear for the established full service operators in India. Prestige can be a strong factor in brand allegiance, especially in the field of business travel, and easily leveraged by smart loyalty programs.
Vicky is the co-founder of TravelDailyNews Media Network where she is the Editor-in Chief. She is also responsible for the daily operation and the financial policy. She holds a Bachelor's degree in Tourism Business Administration from the Technical University of Athens and a Master in Business Administration (MBA) from the University of Wales. She has many years of both academic and industrial experience within the travel industry. She has written/edited numerous articles in various tourism magazines.
