The Centre for Asia Pacific Aviation (CAPA) recently surveyed almost 2000 passengers at major airports in India, the first such study to be conducted. The numerous findings of this survey were significant, and in many ways…
The Centre for Asia Pacific Aviation (CAPA) recently surveyed almost 2000 passengers at major airports in India, the first such study to be conducted. The numerous findings of this survey were significant, and in many ways surprising. Fundamental trends in passenger behaviour have emerged, in the context of India’s Low Cost Carrier (LCC) revolution and this vast country’s developing economy.
Internet Sales and Credit Cards
Three years ago many arguments were put forward that Indian LCCs would inherently fail due to the low internet and credit card penetration in the Indian market. The LCC model would not work in India it was thought, as the glaring differences with the LCC environment in Europe and the US would attest.
The spread of middle class affluence, in the wake of enormous economic growth, has challenged this point of view, and the survey results prove what we have in fact been hearing from India’s LCCs over the past year. The figures are startlingly clear, and still surprising to some – India is in line with global experience:
- 43% of LCC passengers in India bought their tickets over the internet;
- 48% of LCC passengers in India used a credit card to pay for their ticket.
The figures relating to Indian passengers travelling on Full Service Carriers were significantly lower:
- 21% bought their tickets over the internet.
- 61% bought their tickets via a travel agent.
- 31% used a credit card to pay for their ticket.
Theodore is the Co-Founder and Managing Editor of TravelDailyNews Media Network; his responsibilities include business development and planning for TravelDailyNews long-term opportunities.
