Filtered By: Money
Money

Airlines hold seat sales as lean season begins


Philippine air carriers are holding seat sales and cutting airfares to gain more customers as the country's lean flying season begins. And it's not just because airlines intend to encourage tourism into the country, which took a hit when a disgruntled ex-policeman held a bus hostage and killed eight Chinese visitors last week, but due to “the seasonality of travel." These sentiments were expressed by two of three airlines in various phone interviews conducted by GMANews.TV. Fare promotions were prepared even before the hostage-taking incident took place, Patrick Tan, South East Asian Airlines (SEAIR) vice president for commercial affairs, told GMANews.TV. Last August 23, a former policeman hijacked a bus loaded with Hong Kong tourists and killed eight after authorities botched moves to rescue the hostages. "Promotions were prepared in expectation of the seasonality of travel in the country," Tan said. "And traditionally, we're entering the lean season." The lean season starts in August and ends in November. On Tuesday, SEAIR announced substantial fare discounts for Batanes, Boracay, and Tablas in Romblon. Depending on arrangements, SEAIR passengers can enjoy as much as 75 percent off the cost of regular airfare to and from their chosen destinations. Boracay ranked as the third most-popular destination among Hong Kong tourists, attracting 3,853 visitors from the special Chinese administrative region, the Department of Tourism (DOT) said on its website, citing data from January to May this year. Of the 33,395 Hong Kong tourists who visited the Philippines during the period, nearly half or 13,775 visited Manila while 11,222 went to Cebu, the same data said. Separate data from the Bureau of Immigration (BI) indicated that visitors from Hong Kong also ranked 22nd in tourism arrivals from January to August 23 this year. Cebu Pacific Airlines — which has the highest number of flights to Hong Kong — shares SEAIR's view. Although the airline’s Hong Kong service — which flies from Manila, Cebu, and Clark — incurred almost 1,000 rebookings and cancellations for the next three months, it continued to offer fare discounts on 11 routes, including Manila to Iloilo, Cebu to Clark, and Davao to Cagayan de Oro. The discount remains in effect as long as travel is made from October 1 to November 30, the company said. The airline "is always in a constant sale environment anyway, since it is a budget carrier," Candice Iyog, Cebu Pacific Air's vice president for marketing. To further spur sales, the Gokongwei-led airline will be announcing seat sales anytime soon. Both Tan and Iyog also remained optimistic that the number of Hong Kong tourists visiting the Philippines will climb even before the year ends. "Flight cancellations on flights from Hong Kong came mainly from those traveling in groups," Iyog said. In a separate statement, Cebu Pacific said that "passengers scheduled to travel from September 1 to 15, 2010 from Hong Kong, Shanghai, Beijing, and Guangzhou to the Philippines may rebook their flights or store the value of their booking in a Travel Fund without penalties." Iyog added that the number of passengers who flew individually was "continuously climbing." "Forward bookings from Hong Kong to Manila and Clark, as well as Guangzhou to Manila are still climbing," the airline's same statement said. For its part, Philippine Airlines (PAL), the country's flag carrier, kept a "wait-and-see" attitude. Although it is currently offering roundtrip airfare to various Asian destinations for less than $200 — depending on date of ticket purchase and scheduled flight — PAL remains cautious as far as Hong Kong tourists are concerned. "PAL management is assessing the situation to determine if it is appropriate to entice Hong Kong nationals to fly into the country at this time considering emotions are still high," Cielo Villaluna, the airline's spokesperson, told GMANews.TV in a text message. As of August 27, PAL has received 1,100 flight cancellations by Hong Kong tourists and those from other parts of China, she added.—JV, GMANews.TV