Effect of Air tickets Flash Sale on
Business
DGM India is the largest
performance ad network in India and works across industries for generating
online traffic and sales. This unique position also gives DGM inside
information on consumer insights and trends.
DGM has used this advantage and
commissioned a study on the effect of flash sale for airtickets. DGM picked
data for Jan and Feb in 2014 flash sales as well as the trend in 2013. This
study revealed that tickets sales go up by 4-5 times during a sale period than
a normal time. See the below attached
Info Graphic for the same.
To collaborate the findings, DGM
spoke to Makemytrip.com and goibibo.com two of the largest travel portals and
they also agreed with DGM’s findings.
observations were as follows:
Overall Trends:
These sales have helped bring many
customers online for the first time. This augurs well for the Travel industry
ecosystem in India. The Aviation industry will also continue to reap the
benefits of this promotion as we expect to see better load-factors. We saw some
enhancement in passenger-contribution in the last week of February – this was
the first week where customers who would have booked during the first sale
would have used their tickets for travel, indicating that these sales are
indeed helping in increasing the load factors for airlines.
“We have seen a 25% jump in first time customers at MakeMyTrip
during the sale periods, indicating that these sales are helping to get new
fliers, which is good for long term growth of aviation industry in India.”
Traffic jump to MakeMyTrip website
during the last sale – 80% week on week.
January-March quarter is
traditionally a lean period for leisure travel. After success with similar
promotions last year, Airlines seem to have to have hit on a winning formula to
energize the sector. Thus Airlines are able to drive purchases further out,
improve forward-loads and yields by incentivizing earlier purchases and gain
yield predictability by filling up seats earlier.
Observations:
The first sale in Jan 2014 saw
numbers jump 8 times. and the next ones saw 4 - 6 times jump
Read about it in the coverage on Economic times by clicking here.
Read about it in the coverage on Economic times by clicking here.
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