Tourism, Buses and Planes: Is There a Price War?

Go to Cordoba by plane for only 400 pesos. This is the first offer that triggered a low cost after the government decided to remove the tariff floor for local flights, a measure that would take effect from mid-August. And this has generated concerns, especially in land transport, something that does not seem crazy, when the same trip in micro costs about 1500 pesos.

For some observers, the measure announces a price war between low-cost airlines, conventional airlines and bus companies. Others believe that this will not be the case. They claim that behind the cheap airline offers, there is more "marketing" than anything else and that only a tiny part of their pbadengers (those who buy from the airlines) are more likely to be in the market. in advance, do not carry luggage and do not take into account some seasonal factors) actually, promotional fares, while many others will pay prices closer to those practiced by conventional airlines and land transport.

The truth is that the government's decision is already making a splash in the local commercial aviation market. And for some, this could represent the definitive take-off of low-cost airlines in the country, a phenomenon that has been developing for years in the world.

AN OLD ASPIRATION

The minimum rate was an aspiration expressed by the low cost, which needed to display their business strategies at ease. In Argentina, for the moment, there is only one low cost airline that operates and that is Flybondi. But from October, the Norwegian will start operating, which will start selling tickets from the month of August.

In this context, the measure taken by the Government will begin to be implemented when it is published in the Official Journal. and the first offers will come into effect, without restriction, from mid-August.

In accordance with this announcement, Flybondi launched a super offer of 399 pesos in Córdoba.

that the measure will work with tariffs 40% lower than they currently have.

"Although the tariffs are subject to the road, seasonality and other factors, for example, the El Palomar-Córdoba road could begin They also indicated that they could carry out specific promotions with prices under 40% of current rates.

However, they pointed out that, for a value of 399 pesos per stump (plus baggage), is always keep in mind that the time of. anticipation is the most important thing to travel in a low-cost business: "the earlier you buy, the less you pay," they explain.

With the new scheme, the company is talking about discounts up to # They estimate that the floor would reduce most tickets by around 40%, to which should be added special promotions and "auctions" for less traveled destinations. a month in Córdoba has a total cost of 2,800 pesos and the difference with the proposed new price would be more than 70%.

However, some believe that beyond the concern it generates in conventional group companies and airlines, – without too much room to cut costs and lower prices – that the most enticing offers low cost will reach a few people.

From a travel agency consulted by this Everyday, it was considered that the impact of cheap offers might not be as strong.

In this sense, they considered that "the offers are more marketing than anything else" and that the lowest prices will reach Buy first tickets

"Some offers have a promotional purpose ", they said.

Otherwise, access to cheap tickets may have other apartments for platenses.

In this sense, the same agencies indicated that, as Flybondi aircraft depart from El Palomar, access to the platenses implies an impact on the duration of the trip and its price

"The problem is that a platense can pay 2,000 pesos in a discount to get to the plane that takes it for 400 pesos to Córdoba.or lose time to go to the capital by public transport and from there to El Palomar, when it would be more convenient to take a bus at night in the La Plata terminal. "