Webjet Slams Airlines Over Airfare "Panic"

[Nigelinoz]

From:
http://www.travelweekly.com.au/dirplus/images/travelweekly/TravelTodayPDF/11_03_2009.pdf

Webjet has launched an extraordinary attack on airlines as it accused them of crucifying the market by needlessly cutting fares and creating a late booking mentality among consumers.
The online retailer said airlines are failing to hold their nerve and panicking in the face of poor
forward loads.
Managing director David Clarke argued that constantly reducing fares was unnecessarily
damaging yields with airlines creating a "self fulfilling prophecy" of doom and gloom

Of course it wouldn't have anything to do with reduced fares meaning lower revenues for Webjet would it ?

 

[anat0l]

I don't understand why the attack. So what if the other airlines are doing something which is economically unsustainable? Let them wallow in their own blunder.

For the consumer, it's been more of a mixed bag. Besides, no one can tell when we're going to see either no more price drops, or whether the prices will go back up to pre-GFC times.

As for Webjet, the hypocrites can really talk. Booking with Webjet incurs a hefty booking fee. I thought QF were being hard ball for introducing their substantial credit card charges which is steadily increasing. Webjet are gougers in comparison.

 

[jakeseven7]

i just use webjet to contrast and compare then off i go to the airline to book directly... thanks webjet!

 

[Nigelinoz]

i just use webjet to contrast and compare then off i go to the airline to book directly... thanks webjet!

Me too,if I have to pay a credit card fee I'd rather pay it to the airline than a third party,it's crazy I know but I still stick to it.

 

[Aray]

i just use webjet to contrast and compare then off i go to the airline to book directly... thanks webjet!

Hehe .. same here !!

And knowing one of the director/owners of webjet through a personal connection - they can suffer their losses for all I care .. .

 

[yo yo ma]

i just use webjet to contrast and compare then off i go to the airline to book directly... thanks webjet!

Yes... and I do the same when booking accommodation when using wotif.

 

[Mal]

I don't understand why the attack. So what if the other airlines are doing something which is economically unsustainable? Let them wallow in their own blunder.

I agree. Why is it Webjet's issue? They really have no clue.

Their share price is actually quite high compared to recent lows in the market.

Do they think consumers buying tickets are bad? Or are they more concerned about the fact that airlines are more aggressively marketing their tickets... hence people are less likely to book through WebRipoff (Webjet)?

 

[JohnK]

I don't understand why the attack. So what if the other airlines are doing something which is economically unsustainable? Let them wallow in their own blunder.

Webjet is only interested in their own profit margin.

I use online travel agents to compare airfares and will only book with them if the airfare is cheaper than any other airfare I have found or I am interested in the routing but cannot book anywhere else....

 

[straitman]

Webjet is only interested in their own profit margin.

I use online travel agents to compare airfares and will only book with them if the airfare is cheaper than any other airfare I have found or I am interested in the routing but cannot book anywhere else....

I'd say that most 'educated' people would follow this method (or a variation). I most certainly do so.

 

[ethernet]

Any online shop selling expensive discretionary purchases is going to take a hit in this financial climate. Same for most services.

Airlines ARE holding. Cheap June and December purchases are NOT available. Bargains in most popular timeslots.. not available.
Airlines know what things were like 1,2 years ago, so they are not panicking, they know they have to beat the drums loudly - just ask Virgin.

Webjet,Wotif are off my surfing radar. Total Airline miles and airport visists will be down this year (as will be OS tourists). Fleeting bargain illusions have turned me off, so I have decided to rest by staying at home, and either spend nothing, or pay down bills.

Judging how Greyhound Buses have record loads - I'd say airlines are missing the point - (Football match gorging come to mind). Works teleconference facilities are chokka - less travel.

You would think 8-9 months payment upfront would be handy - but not so.
Last December there were no 2 for 1 deals prior, and some planes only had a very low numbers of bums on seats. And of course, the fuel surcharges and taxes, and airport hassles hurt long term trends, along with aussie dollar dropping AND local hotel price increases.

I've pre-paid for CNS return in May (Airline direct, not web whatever) and August meaning 2 less OS trips at any price. Gut feeling is after the stimulus payment, the wallet will be battened down, hard. If Eastern Europe or an Asian currency devaluation eventuates, that may change things.

 

[albatross710]

I thought the original idea with the low price point fare was for the airlines to maintain awareness and interest in travel. Two people traveling on a multi-leg might get some of the legs at the discount but pay more for other legs. On the entire journey, it is up to the airline yield managers to make it so that you can't get all of the good fares all of the time.

When AirasiaX ran their free seats sale, it was difficult to find a free seat both ways. Possibly many people got a free seat in one direction and paid a fair price in the other direction.

I see Webjet as having a place in the market where people can book multiple airlines, hotels and cars. For the convenience, the customer pays a booking fee to cover that convenience.

Certainly time of 'recessionary' business when Customers (webjet) and Suppliers (airlines) start having slanging matches.