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.
Theodore is the Co-Founder and Managing Editor of TravelDailyNews Media Network; his responsibilities include business development and planning for TravelDailyNews long-term opportunities.
