Airlines jack up fares to Gulf, targeting vacationers

Airlines operating flights from Kerala to Gulf nations have significantly raised ticket prices, capitalizing on the return of travelers after the Onam holiday and the resumption of school terms in the Gulf. The surge in fares has drawn attention from travel agents and local officials, who accuse carriers of exploiting the seasonal demand for profit. The price hikes became apparent shortly after the Onam festival, which typically marks the start of the academic year in the Gulf. Direct flight tickets from Kerala to Gulf destinations saw a dramatic increase, with costs rising approximately ten to fifteen times the usual rates during the final days of August. On August 30, an economy-class flight from Kochi to Sharjah was priced at ₹84,457, while a similar journey to Bahrain reached ₹1,02,651. A Thiruvananthapuram, Bahrain route offered an even higher fare of ₹1,47,444, and a trip to Dubai was listed at ₹83,777. These figures were based on data collected on August 11, highlighting the extent of the price escalation. In contrast, fares for flights returning from the Gulf to Kerala before Onam remained relatively stable, falling within the typical range of ₹12,000 to ₹22,000. This discrepancy suggests that the pricing strategy is primarily aimed at outbound travelers rather than inbound ones. Normally, flight prices in this sector hover between ₹6,000 and ₹12,000, making the current situation particularly striking. K.V. Muraleedharan, president of the Kerala Association of Travel Agents, noted that the sudden spike in fares appears to be a deliberate effort by airlines to maximize revenue during the peak travel season. He pointed out that while fares from Kerala to the Gulf have soared, those from other major Indian cities like Bengaluru, Chennai, and Mumbai to the Gulf are roughly 40% cheaper. This disparity indicates that airlines are selectively increasing prices to target specific markets. The timing of the fare increases aligns with the overlap of Onam and the new academic term in the Gulf. However, this year’s schedule saw the Islamic festival of Id occur earlier, in May, leaving Onam as the primary reason for the influx of travelers returning to the Gulf. As a result, the impact of the fare hikes is concentrated among expatriates planning to return home following their holiday and the end of school breaks. Víctor Fernández, general secretary of the association, urged the state government and members of parliament from Kerala to intervene and regulate airline pricing practices. He emphasized the need for authorities to address the issue, arguing that the current pricing structure unfairly burdens passengers during a critical time of the year. As the situation continues to unfold, further developments could include regulatory actions or public outcry over the perceived exploitation of travelers. The airline industry's response to these concerns will likely shape the trajectory of future pricing strategies and policy interventions.