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Business News/ Money / Personal Finance/  Airfares drop but is it safe to go abroad?
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Airfares drop but is it safe to go abroad?

It is difficult to predict if the situation will improve anytime soon, so choosing domestic destinations for your holiday plans may be a better idea
  • If you really want to travel abroad, consider destinations that remain unaffected as of now
  • Photo: iStockPremium
    Photo: iStock

    The Covid-19 is now spreading fast to countries other than China. According to data from the World Health Organization (WHO), as on 1 March, of the 87,137 cases confirmed globally, 7,169 were reported from outside China in countries such as Italy and Iran. On 1 March alone, 1,160 new cases were confirmed outside China.

    While the stock markets are feeling the pain, the aviation industry seems to have taken a hit as well. Airfares for many international destinations have been slashed compared to the same time last year. According to data from Ixigo.com, an online travel portal, airfares have dropped as much as 32-35% on most international routes. “It’s mainly due to travel advisories being issued by various countries post the Covid-19 outbreak. Drop in airfares can also be due to the recent international travel sales being rolled out by various airlines, including Air India and Indigo," said Aloke Bajpai, co-founder, Ixigo.com.

    The attractive fares may tempt you to plan an international holiday in the upcoming months, but should you travel amid the threat?

    Drop in fares

    A one-way flight from Delhi to Rome which cost 32,371 in March 2019 is now available for as low as 26,345, a drop of almost 19%. Flight fares on the Mumbai-Singapore route have seen a significant fall as well. What was priced at 26,000 in March last year will cost just about 8,727 if you were to book a one-way flight this month. Fares on this route are down by a huge 66%. “Fares are dynamic and based on demand. Usually, fares drop when demand goes down and vice-versa. Thus, the pricing movements are a reflection of how customer demand has reduced due to the travel restrictions imposed by many countries, low demand for corporate travel due to travel bans advised by many organizations and subdued customer sentiment for leisure," said Balu Ramachandran, senior vice-president, Cleartrip, an online travel platform.

    Demand for international travel, especially to countries around China, has gone down considerably. Ramachandran said there has been a 30-60% drop in bookings to China and some other countries in South-East Asia ever since Covid-19 cast its shadow. Even fares between Delhi and Dubai have come down by almost 53% compared to the same time last year, shows data from Ixigo.com.

    A closer look at individual airline fares shows that an Air India one-way flight from Delhi to Dubai, which was priced at 22,364 in March last year, cost only about 14,329 in February this year. Similarly, a flight on Italian airline Alitalia between Delhi and Rome which cost 36,424 last year in March now costs only 26,422, one-way. “Search results for Europe have gone down too after Italy reported a number of Covid-19 cases. South-east Asian carriers are facing a big challenge because people are becoming wary now. It’s a fluctuating and unstable situation. We didn’t expect Europe to get affected but that’s taken us by surprise," said Sabina Chopra, co-founder and chief operating officer, corporate travel and head industry relations, Yatra.com, an online travel platform.

    Should you travel abroad?

    According to a Reuters report, a growing number of patients in China and other regions who’d recovered are starting to test positive for Covid-19 once again. Ramachandran said it is difficult to predict when the situation will improve. “South-east Asia tends to be a large part of the travel plans for a whole bunch of Indians in general. If the spread of the virus is not contained, we may see a change in sentiment where Indian travellers will alter their plans and look for other options," he said.

    Many airlines have already reduced the number of flights to certain regions. Chopra said airlines have reduced their flight frequency to Thailand, Hong Kong and Singapore. “There aren’t many cases of Covid-19 in Singapore and Thailand, the focus has now moved to Europe. But airlines are being cautious," she added.

    If you do want to travel in the next few months, domestic destinations may be a better option. If you really want to travel abroad, you could consider destinations such as Sri Lanka, Mauritius, the Middle East, Maldives, South Africa and South America (which remain largely unaffected as of now), said Chopra. However, try and avoid taking flights that require you to transit through any of the Covid-19-affected regions. “Research will be useful. In fact, there are live online counters that are updating prospective travellers on the Covid-19 situation from various parts of the world. However, preventive measures should be taken when travelling to unaffected areas as well," said Ramachandran.

    Shweta Jain, certified financial planner and founder, Investography, said the situation is unlikely to stabilize anytime soon. “In a situation as delicate as this, I’d suggest you do not get tempted by the low airfares and avoid international travel."

    Monitor the situation closely for the next few weeks before planning a vacation abroad.

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    Published: 02 Mar 2020, 10:22 PM IST
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