Thursday, 8 May 2014

Effect of Air tickets Flash Sale

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.