Push back please

Traveling has never seemed more costly. An usual Volvo customer I found a big difference last week. Most of the seats in Volvo were empty!

The sales at private travels in AP has registered a 10% decrease in demand for Volvo ticket sales. Most of the times the A/C Volvo travels costs 80 to 100% more than a regular push back bus. So where does this population go? Most of them have shifted to trains which provide a more convenient comfortable option at a cheaper price. Call it cost cutting, recession, job losses or just a change in trend.. it is visible. With in the bus all items have become costlier, DVD choices wider, staff friendlier... The last ten seats are what get converted to profit in a Volvo and if they aren't filled its a loss trip. Hence travel service owners are considering a reduction in prices to keep the charm and traffic consistent. The pain is reduced as the fuel prices have come down a bit. Or else I need to book a train ticket or push back.

"Bangalore busses are never vacant," I hear, "as they are full of IT personnel." The staff are hoping it would pick up faster... may be by Deewali. Amen.

Garibh Radh

Vijay Mallya's loss is Lalu's gain. Aviation industry is witnessing a huge slump as the economic crisis hits Indian shores. The cost of travelling by plane is very high when compared to rail and hence rail is the new fashion. Lalu is ensuring that the ambience in first class matches to the taste of the elite executives who are habituated to the service on the plane. Clean linen, 24*7 water, AC, security, power sockets, quality food and Internet connection are in the offing. The passengers are not complaining. 

The same applies to roadways. 

Bus ticketing company Ticketvala.com has also seen a 15-20% growth across all networks in weekend bookings in December and January compared to the same period a year ago. “Due to the tightening of budget, people are now travelling more and more in buses as it is one-third the cost of an air ticket,” says Mr Haranath Lokanathan, CEO, Ticketvala.com. 

With the economic slowdown, people are becoming a lot more conscious about their travel budgets. Consumers cascade when certain changes effect the market. This is a strategic inflection point and the firm should be ready for the same. Are you ready for the inflection?