Monday, June 27, 2022

What may happen once airlines start charging for toilet usage onboard!

Airlines want to charge extra for everything- seat selection, food, baggage, priority boarding, priority baggage out, for rescheduling your ticket and more. Luckily once you get on a plane use of toilets (lavatory in a more sophisticated wording) is still free.

But that is changing fast. Charging for toilets onboard is no longer a question of ‘if’ but ‘from when’. Ryanair has already leaked a pricing plan [details here]


RyanAir wants to force their customers to use toilet at the airport before boarding or after getting down, so that usage of onboard toilets can be reduced. If that happens, Ryanair can remove 2 toilets from the 737’s rear and add 6 more seats there, lowering everyone’s ticket price by another few percent.


I am imagining what would happen if Indian Airlines and airlines around the world start charging for toilets.


This might sound gross, but it could soon be reality. For now enjoy reading but pray this doesn’t happen

  • First Class: Unlimited Toilet usage
  • Business Class: 1 complementary usage per hour of flying, chargeable for additional usage
  • Premium Economy: 1 complementary usage per flight, irrespective of flight duration. Pay 200 INR second usage onwards (max 2 minutes)
  • Economy Saver: No complementary usage. Pay 250 INR per minute usage. Pre-book for just 200 INR and save 50 INR. But the pre-book comes with the condition that the passenger needs to select exact timing when he/she wants to use the lavatory. Else it is gone.
  • Economy Flexi: Same as economy saver but comes with an option to edit your lavatory slot 2 times during the flight without losing it.
Other rules & practices that may come up...

  • Passengers who’ve not booked any toilet slot but are having ‘urgency’ should pay 1000 INR for priority usage.
  • Boarding pass will be issued only after you show to the counter agent that you’ve enough cash/credit limit to pay for onboard toilet usage or you’ve already paid for your slots.
  • Passengers who have pre-booked the lavatory slot but don’t want to use it can give it to other passengers in need. But a Lavatory swap fee (LSF) of 50 INR will be charged to both passengers.
  • Note that all usages are on a per minute basis. If you paid for 1 minute and didn’t come out within 60 seconds the door would automatically open at 61st second. You’ll get a notification to pay extra and extend your stay when 50 seconds have crossed.
  • Airports will charge an extra 200 INR per person as “Lavatory usage fee”- as almost everyone will try to use airport toilets as much as possible to save paying for toilets onboard. This cost will now be added to ticket fare by default.

Airlines will also incorporate technology to measure how much waste a passenger has released into the lavatory. Once that technology is available a limit of how many ML urine a passenger can pass or how many grams of the other thing one can release will be announced. Anyone crossing this limit will be charged a penalty.


Business Analytics and Market Intelligence kicks in

Seeing that toilet usage revenue is exceeding profit from ticket sales, those who paid maximum for toilet usage will be upgraded to business/first class, but their toilet usage charges will remain the same as economy class because the airline doesn’t want to lose that revenue.


Passengers will start carrying portable toilets in their cabin bag to save on paying exorbitant fare for usage of inflight toilets. Once this starts, airlines will start measuring cabin baggage when you exit the plane as well, just to check if the weight has increased compared to what it was before you boarded…


Sensing the opportunity, some ticket booking startup will emerge offering complementary toilet pass as their unique selling proposition, funded by VC money. Everyone will rush to this website to make it a unicorn. Once they exhaust VC money they will be forced to increase “convenience fee” and other charges silently to make up for cost of complementary toilet pass. The startup will also negotiate with airlines for wholesale rate so that they can save some money..

Friday, June 24, 2022

Hidden city pricing in India- should you try?

I noticed that Indigo’s Mangalore (Mangaluru) to Belgaum (Belagavi) flight which is one stop via Bengaluru (Blr) is cheaper than a flight to Bengaluru which is half the distance on same day, same route.

Above: Mangalore-Bengaluru is 4467 INR
Below: Mangalore -Bengaluru on same flight as above+ Bengaluru-Beagavi is 3011 INR. Double the distance but cheaper.

IXE-BLR +  BLR-IXG costs 3011 on Indigo website for a random date in July while a flight from Mangaluru (IXE) to Bangalore (Blr) on same day, same flight is priced at 4467 INR. Because Blr flight is half the distance of Belgaum flight we would expect it to be cheaper than the longer Belagavi flight. But aviation pricing doesn’t work like that. Airline pricing is largely a demand supply game and what airline pricing managers think they can extract from passengers.


Effectively, if I want to go to Blr but book a ticket to Belagavi and get off at Bengaluru, I save more money compared to booking a flight only till Bengaluru.


This process is called hidden city pricing or skip lagging. It was popular in USA where some smart individuals started using this information to their advantage and then airlines started coming down heavily on such customers.


Part 1: Why do airlines price some destinations cheaper?

There are many reasons. Airline pricing is not a direct function of distance/cost.

  • When a new destination is launched, airlines keep price to this destination cheaper to attract more customers
  • When a flight is empty, airlines may sell a few seats for loss to ensure there is some revenue coming in for that flight
  • If a destination is not that popular, no one is flying, airlines keep the price low. If demand is high, price is kept higher
  • Competition: Destination where there is good competition fares might be lower compared to destinations where airline has monopoly
  • Direct flights cost more- Many people value their time. A direct flight to a destination is charged a premium compared to a one stop flight which takes more time

Risks of hidden city pricing

  • Your checked baggage will be tagged for final destination. So you won’t get it automatically at Bengaluru if you don’t board Blr-Belgaum leg. Of course airlines need to take off your bag from the hold once you don’t board, that way you may get your bag, but you could be caught trying to game the system.
  • Airline may reroute you. If Indigo’s IXE-BLR flight is canceled, they may reroute you via Mumbai to Belgaum. Then your purpose of going to Bengaluru gets compromised
  • Airline may blacklist you or take away your miles. Not well known in India but abroad airlines penalize individuals who game their pricing models.

Is it worth trying to exploit hidden city pricing?

It is for every individual to decide. Hidden city pricing are hard to find. You have to keep checking several combinations manually and should be lucky to find a hidden city pricing that suits your travel needs and saves you money.


You can assess if the risk vs reward is worth. Is the savings just a few hundred rupees or runs into thousands of rupees? What are your plans if airline routes you through another city?


If the savings are worth, you don’t have a checked bag and would love to save some bucks with the risks involved, then go ahead. A tweet I put on this topic recently attracted lots of traction. Do check the tweet and reply by various people..

Wednesday, June 8, 2022

Lufthansa Swiss Air complicated ticket booking process for Indians

Recently I tried booking a ticket on Lufthansa and Swiss Air. My previous flight in Lufthansa was booked by my company via a travel agent so I didn’t have to worry about booking the ticket. This time I saw a cheap return ticket to Europe so I decided to book.

To my surprise, the ticket booking process on Lufthansa and their partner Swiss were pretty complex. Amadeus is their GDS partner. Many international airlines have a complicated process for Indian customers- probably because their global payment gateway is not working for Indian cards or some other technical reasons. In 2019 it was near impossible to book a ticket on American airlines from Chennai, India (American Airline solution was that I give all my card details to their customer care on email and they will charge it...) so I decided to ignore them and book on SouthWest.


This time I tried booking on Lufthansa, the transaction would fail at the final step and I would get an error message on screen, asking me to contact customer service. No email, no SMS.


At first I thought it could be some issue with my card. Checked balance, limit etc and tried again- no luck. At the office I tried again once with a colleague’s debit card and with another colleague’s credit card. Same error. No luck.


Thankfully no money was debited from their account- life would have been hell if money was debited but the ticket is not issued.


There is no email/SMS about attempted booking, no call from customer care (many websites/companies track user activity and if you exit at payment stage call centers call you to check if there is any issue).


Decided to call the airline helpline. The Swiss Air helpline had a 10 minute wait but was finally able to speak to a human. They managed to recover by booking based on dates I had given and promised to send me a payment link. I was also given a PNR. (when I attempted booking the PNR was created, but not shown to me or sent via email).


Payment link came after 3-4 hours and I could make a payment using netbanking. It is a local payment gateway hence supporting all modes including UPI.


As of now I have paid the money but yet to get a confirmed ticket. Hopefully it comes in soon.


Update: Confirmed ticket was sent same day late night.


I also tried following up with Lufthansa- there also the same case- because 11 hours had passed, I was told they can’t retrieve my booking and I should try again. Their payment link email came after I had paid for Swiss Air itinerary, so will be ignoring the same.

I've booked tickets on Singapore Airlines, Qatar Airways, FlyDubai, AirAsia Malaysia and other international airlines from India. Didn't face issues like this. Singapore airline even accepts UPI payment.


If Lufthansa/Swiss Air are not able to accept direct payment from Indian customers they can call it out on their website, save all the trouble and trauma for the customers. After trying 3-4 times, troubling many of my friends to help me with booking, I had almost made up my mind to abandon this trip plan. If I had not called airline customer care, I wouldn’t have booked this trip.


Not sure how the payment will work if customers chose to buy some add on services later.


Anyway, this is just the start. Still several months to go before the trip starts. Hopefully everything goes fine.


Update: My Europe trip went well and within budget. Read more here.

Tuesday, June 7, 2022

Europe return ticket for 38000 INR- 2023

Flight tickets to Europe (and most parts of the world) are now insanely expensive. It was possible to get a Europe return ticket for 50k or less under normal circumstances pre-covid (I’ve seen cheapest at 28k to 33k), but these days we’re looking at spending 70-80k for a return flight to Europe. I was thinking about Europe but wasn’t keen to spend so much.

Accidentally I spotted a return ticket to Europe for under 40k INR, which is a really tempting price. Lufthansa and Swiss are offering Mumbai-Amsterdam, Mumbai-Paris flights for around 38000-39000 INR return, for travel dates in Feb, March, April 2023. You can check on official websites of Lufthansa and Swiss for the deals that interest you. I have given sample screenshots and data pointers below. You can explore more trying more destinations and date combinations on Lufthansa and Swiss Air websites.


Sample prices on Lufthansa/ Swiss Air for 2023


#

From

To

Travel Date

Price

1

Delhi

Paris, Amsterdam, Madrid, Venice

Feb, March, April 2023

37000-38000

2

Mumbai

Paris, Amsterdam, Madrid, Venice

Feb, March, April 2023

38000-39000

3

Bengaluru

Paris, Amsterdam, Madrid, Venice

Feb, March, April 2023

39000-40000


Ticket prices vary a bit on daily basis depending on Euro-INR currency fluctuation. Also I saw the lowest price 38007 for Mumbai-CDG at a time but within hours it went up to 39000 INR. I think they are manipulating the pricing using cookies.


This is not the cheapest fare I've seen. Pre-pandemic I've seen Qatar air offering 33k return to Paris. Air Italy had 28k return. But those are pre-pandemic scenarios. Right now Qatar is pretty expensive. 38k is decent fare under current circumstances.


These fares are mostly NOT visible if you check on 3rd party sites..



The good things about this cheap flight to Europe deal

  • 40k INR return is half of current cost. So it is a good deal even if we have to wait 9 months for it.
  • Enough time to apply visa, plan your trip etc
  • Hopefully things normalize over the next 6 to 9 months and the overall trip can be organized in comfort and budget if no new surprises pop up before the trip.
  • September to Feb is winter in Europe- not the best time. March, April is relatively better time.
  • Lufthansa/Swiss Air are reliable airlines. Hopefully no major schedule change/crisis popups in next 9 months

Risks

  • These low rates are for Feb, March, April 2023. 7-9 months from now. A lot can change by then. Another covid wave, some other rules and restrictions etc. You’ve to take a gamble and book.
  • This is the non refundable fare. 150 Euro for any change of date + fare difference extra. 
  • This lowest fare only gets you an 8 kg cabin bag and meals. Check-in bag and many other things extra.
  • Currently there is a huge queue for Schengen visa. Hopefully things will ease a bit. Applying too early is also a risk, if your visa validity expires before your trip ends. You’ve enough time to plan but don’t delay your visa application for long. 
  • February, March are the end of winter and beginning of summer. Hopefully the weather will be favorable. But do expect some snow spoiling your plans or some tourist places closed because it is off season.

Europe trip budget:

  • Return flight: 40000 INR
  • Schengen Visa: 10000 INR
  • Stay for 1 week, budget option: 20000 INR
  • Food, sightseeing and other expenses for 1 week: 50 Euros per day= 30000 INR

Total: 1 lakh rupees per person under normal circumstances

You can save a bit more if staying in cheaper hostels, eating cheaper food and visiting less expensive/free to visit places using public transport. If two people share accommodation, if staying longer per day expenditure may come down a bit.


Update: I tried to book but failed at payment stage. Tried with 2 different debit card and a credit card, got an error all the time. Had to call airline website, get a payment link from backend and then pay.


March update: My Europe trip went very well and in budget. Read details here.


Are you excited?