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Wednesday, August 21, 2024

30% of Air India Express domestic bookings are for hand bag only fares

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In Short:

Air India Express introduced cheaper hand bag only fares on its website, which now account for 30% of domestic bookings. Passengers can save money by opting for this fare, but must pay extra for check-in bags. This has led to fewer check-in bags, shorter queues, and better on-time performance. The XpressLite fares are especially popular in Southern states and for round-trip journeys. Other airlines have also experimented with zero bag fares.


Revolutionizing Air Travel with XpressLite Fares

**Air India Express** has introduced a game-changing initiative in the aviation industry by offering **XpressLite fares** on its website. These fares, which do not include check-in bags unless purchased separately, have garnered significant popularity among passengers, constituting 30 per cent of domestic bookings on the airline’s website.

Enhancing Operational Efficiency

By opting for the XpressLite fare, passengers can enjoy **lower than normal fares** which are priced ₹500-1000 cheaper. While customers have the option to add check-in bags for an additional fee, only one out of five travelers choose to do so. This has not only simplified the boarding process but has also reduced queues at check-in counters and baggage claim areas.

Furthermore, the Directorate General of Civil Aviation data suggests that since the launch of XpressLite fares, **Air India Express** has consistently ranked among the top airlines for on-time performance, affirming the positive impact of this innovative pricing strategy.

Southern States Embrace XpressLite Fares

The appeal of XpressLite fares is particularly strong in routes to and from the Southern states of India. Interestingly, round-trip journeys witness a higher uptake of these fares compared to one-way trips, indicating a preference for cost-effective travel options.

While the concept of zero-check-in bag fares was first introduced by **SpiceJet** in 2015, it failed to gain traction initially due to minimal discounts. However, with the evolution of regulations allowing airlines to unbundle fares and charge separately for baggage, the market has witnessed a shift towards innovative pricing models like XpressLite fares.

As the aviation industry in India evolves, the success of XpressLite fares highlights a shift towards consumer-centric pricing strategies that prioritize affordability and operational efficiency.

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