Aerolíneas Argentinas’ most affordable prices dropped by 20% in two years.
Buenos Aires, April 18, 2018. – Aerolíneas Argentinas lowered the price of its most affordable rates by 20% during the last two years. This makes flying available to more segments of society. At the same time, through a broader market segmentation, the company achieved higher revenue.
21% of the tickets sold by Aerolíneas corresponds to the segment of promotional prices. These prices dropped by 17% between March 2016 and March 2017; and an additional 3% between March 2017 and March 2018.
Promotional prices include specific discounts or reductions within the framework of promotions. This wane in prices makes it possible for more Argentine people to buy tickets.
“The drop in the price of the most affordable tickets is a part of the restless work of our commercial teams to offer more competitive tariffs in an increasingly challenging market with a growing supply and demand. Along with this growth, we incorporate more flights, new routes and intersegments operated efficiently, which allows us to lower the price of air tickets”,explained Mario Dell’Acqua, president of the company, in a press conference during the World Trade & Travel Council, a summit that brings together all major players in the tourism and business sector.
Apart from this, the lowest rate was reduced by 57% between January 2015 and March 2018. In this particular case, it matches the benchmark fixed as the minimum rate by the regulating authorities. In the case of certain companies or when buying the ticket earlier than the average buyer, passengers may also obtain these rates.
In turn, Aerolíneas Argentinas’ average rate experienced a significantly lower wane, hitting 8%, in the same period. This is due to the impact of the revenue management policy, which permits market segmentation in different sets of tariffs, depending on the moment of the purchase, among other things. Thus, users who buy their tickets in the last moment, or during the most demanded days, allow the company to continue increasing its income while the lowest tariffs keep dropping.
It is worth mentioning that during 2017, Aerolíneas Argentinas carried more than 13 million passengers, 13% more than during 2016. Furthermore, in Q1 2018, Aerolíneas Argentinas carried 6% more passengers than during the same period of the previous year.
Meanwhile, load rates exceeded 80% during 2017 and during this year they averaged 86%.