IndiGo to charge ₹2,000 per seat in select categories: Here are the pricing details for every seat
IndiGo’s New Seat Selection Pricing: ₹2,000 for Front Row Comfort
IndiGo, India’s largest airline by market share, has introduced a significant change in its pricing strategy, particularly for seat selection. The airline, operated by Interglobe Aviation, has announced that passengers will now need to shell out ₹2,000 for the privilege of selecting seats in the first row. This decision follows closely on the heels of the airline’s move to eliminate the fuel surcharge, marking a notable shift in its revenue approach.
Increased Charges for Preferred Seating: What You Need to Know
- Front Row Pricing: Selecting a window or aisle seat in the first row of an A321 aircraft, which boasts 222 seats, will now cost ₹2,000. The aisle seat in the same row is priced at ₹1,500.
- Second and Third Row Charges: All seats in these rows will be uniformly priced at ₹400.
- Variation Across Fleet: In the A320 and A320neo aircraft, which form the majority of IndiGo’s fleet, 18 XL seats are available. These come with extra legroom and are priced between ₹1,400 to ₹2,000, depending on the seat.
- Revised Seat Selection Charges: The updated charges, reflecting the new pricing, are already visible on IndiGo’s booking engine and website.
- Comparison with Previous Pricing: Earlier, seat selection charges ranged from ₹150 to ₹1,500. The revision represents a 33% increase at the upper end. However, IndiGo continues to offer free seats, usually located towards the rear of the aircraft.
Impact on Ancillary Revenue and Market Strategy
IndiGo reported an impressive ancillary revenue of ₹1,551 crores in the last quarter, inclusive of seat selection, meal choices, and other service combinations. The revised seat pricing is expected to further boost this revenue stream. Interestingly, the airline maintains a dominant 60% market share in India, with a substantial presence on monopoly or near-monopoly routes. This dominance, coupled with a price-sensitive market, raises questions about the potential impact of these increased charges on passenger choice and competition.
Competition’s Response: A Wait-and-See Approach
Competitors like Akasa Air and Air India Express have similar but varied seat selection charges. Akasa Air’s charges range from ₹150 to ₹1,500, with first row and emergency row seats branded as “A+”. Air India Express follows a similar pattern. The industry is now keenly observing whether these airlines will follow IndiGo’s lead or capitalize on the difference as a marketing advantage.
Challenges for Passengers: Keeping Families Together
The revised seat selection policy poses challenges, especially for families traveling together. While IndiGo offers a free seat selection option at web check-in, families might struggle to secure adjacent seats. This issue is not new; it has been a point of contention in Western countries where seat selection fees were introduced earlier. Airlines like United, Frontier, and JetBlue have committed to ensuring families booked on the same PNR are seated together, a practice that might gain traction in India.
Government Stance and Future Outlook
The government has refrained from intervening in this matter, as the new charges do not violate Civil Aviation Regulations (CAR). However, with decreasing oil prices leading to the removal of fuel charges, IndiGo’s increased seat selection fees appear to be a strategic move to balance potential revenue loss. Despite these changes, IndiGo’s market position remains strong, with expectations of closing 2023 with over a 60% market share, a new record for the airline.
Conclusion: IndiGo’s Bold Move in Airline Pricing
In conclusion, IndiGo’s decision to charge ₹2,000 per seat for preferred seating marks a significant shift in its pricing strategy. While it aligns with global trends in airline ancillary revenues, it remains to be seen how this move will affect passenger choices, competition dynamics, and the overall aviation market in India.
