Coronavirus. What will happen to the prices of airline tickets

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In a context of crisis, online travel agencies prefer to focus on dealing with complaints and not generating more sales Source: LA NACION – Credit: Tomás Cuesta

A crisis of the magnitude like the one that is

living the world for the coronavirus

it defies even the most basic laws such as supply and demand.

Despite the abrupt drop in bookings for travel abroad, prices did not drop in the same proportion.

In the sector they argue that the agencies and airlines already have too many passengers with problems to focus on expanding the business and that, in addition, customers are not in the mood or for promotions.

Some agencies even decided to stop selling tickets to compromised areas.

“Our focus is to serve travelers in progress or those who were traveling soon, and to

not contribute to generating more cancellations in the future,

we decided to limit the sale in certain date windows to certain destinations, “he anticipated

THE NATION

Mariano Rocatti, Despegar general manager for Argentina and Uruguay.

As detailed, they are not selling any product that is destined

China, Italy, Korea, Japan and Iran, for no date, while for the rest of Europe and the United States

blocked sales for the next 30 days.


Despegar announced that it will not sell tickets to the most affected destinations
Despegar announced that it will not sell tickets to the most affected destinations Source: LA NACION – Credit: Tomás Cuesta

“This decision also implies that

we are not promoting mass marketing campaigns and we only maintain promotions to unaffected international destinations

and, mainly, domestic tourism, “said Rocatti.

Regarding the prices of international flights, Avantrip points out that, beyond some isolated promotions, prices are not falling.

“It may be that whoever searches finds cheap tickets, because there is availability in the lowest segment of tickets, but

destinations given away or at half price no ”

, they point.

For Martín Romano,

country manager

from the Atrapalo agency, we must also take into account that

In Argentina, for internal reasons, the demand for international tickets had already been depressed for months

and fares for flying abroad were already at low levels. However, he clarifies: “Our priority today is to help passengers who are traveling or who are traveling soon, we are not focusing on sales.”


Agencies and airlines have many passengers with claims to attend
Agencies and airlines have many passengers with claims to attend Credit: Rodrigo Néspolo

How all those people who have altered their plans feel in front of the new scenario is another factor to consider. “When I see promotions I publish them, but

people get angry because they are worried about the coronavirus and frustrated that they cannot travel ”

, says Diego Cheja, who manages several WhatsApp groups of air promotions.

As they commented to

THE NATION,

in some online agencies even

They turned all their sales staff -usually doomed to generate sales- to attend claims.

“We stay in the middle of the airlines, which are the ones that define the return or exchange policies and the passengers, who are very distressed,” they point out. Take off, meanwhile, also decided that the entire sales team of

call center

is dedicated to the telephone after-sales area.

On the other hand, although demand was depressed,

the offer did not stay the same either.

“There are cancellations, route suspensions and the airlines are not trying to sell anytime soon,” explains Constanza Terrile, owner of the agency Ultima Llamada Viajes. “At the moment I do not see large price drops and there are even search engines that do not let you see the price,” he says.


Beyond some specific opportunities, prices did not plummet because agencies and airlines are focused on meeting claims and not on generating sales
Beyond some specific opportunities, prices did not plummet because agencies and airlines are focused on meeting claims and not on generating sales Source: LA NACION – Credit: Tomás Cuesta

They did appear, according to specialists,

some specific opportunities.

“Two weeks ago, roundtrip tickets to different cities, such as Miami, New York or Los Angeles, were at $ 45,000 and last Friday there was a promo to Miami for $ 18,000. Many take advantage and buy and they will see what to do later, because politics cancellation is more flexible “, explains Julián Gurfinkel, cofounder and CMO of Turismocity.

There were also some opportunities for destinations less affected by the coronavirus, such as the Caribbean or Brazil. “For Rio de Janeiro there were tickets for $ 16,000 with PAIS tax and everything. That is less than US $ 200, when Rio is usually above US $ 300,” he adds.

FURTHER

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