SpiceJet Starts Another Price War With Rivals IndiGo and GoAir

SpiceJetNow is a great time to be a traveller … at least for those who are flying with Spicejet, IndiGo or GoAir. That is because budget carrier SpiceJet has started yet another round of price cuts that are likely to trigger another fare war between these rival airlines.

GoAir and IndiGo are likely sick of battling SpiceJet’s low prices since this is the third time this month that the carrier has cut its prices to bring in more consumers. Since everyone is looking for a bargain right now, this strategy seems to be working. Unless IndiGo and GoAir want to lose big chunks of the market, they are forced to play this low fares game with SpiceJet.

The latest price cut for SpiceJet is called its Super Summer Sale. This deal has some tickets marked down as far as 75 percent off the base price. This deal is good on all travel between April 1 and June 30.

As said above, the two other schemes that SpiceJet launched earlier in the month proved to be hugely popular. The one thing that all of these schemes had in common is that they all made seats available to passengers at huge discounts.

So how can SpiceJet afford to do this? The budget airline is just looking to fill up its planes. If it can do that, it will be making money on seats that would have otherwise been empty. As a result, even though it is making less money on the seats that do sell, it is making more money because it fills more seats.

Also, since it is a budget airline, it makes a lot of money off the extras that people buy when they are on the plane. With more people on each plane, it has a bigger chance of people buying extras. Studies also show that when people witness others buying extras on planes, such as food and drinks, they are much more likely to follow suit.

In mid-January of this year, SpiceJet started a fare war by offering some of its tickets at 50 percent off. This cut in price was immediately followed by its rivals so that it would not lose business. It later went offered other discounts on tickets as well, and these were also followed by the rivals.

Sanjiv Kapoor, the COO of SpiceJet, said that it has received a lot of positive feedback from its customers about these discounted ticket prices. The Super Sales that SpiceJet has are making air travel more affordable for everyone. It is also causing people who would normally not travel by air to let loose and go on a holiday.

He added that these offers are a win-win for all of the customers that fly. Regardless if they fly with SpiceJet or not, they are getting discounts on other carriers because the other airlines are trying to match SpiceJet. With more people travelling, the travel industry gets a boost in profits. Everyone in the industry wins.



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