Airlines are expected to increase airfares by some hundred rupees on every ticket for a possible reduction in the revenue if they have to refund the amount to passengers who cancel their bookings.
According to an executive with a private airline, the full refund proposal in case of a customer cancelling a ticket within 24 hours after the booking will hamper the revenue strategy that would help in low airfares for customers.
As per the government’s estimate, 7% off tickets in India get cancelled. All the cancelled seats are not usually filled by the time the journey begins and there is a loss in funds. Hence, there may be an increase in the fare by Rs. 200-400.
The government is firm on its stance to allow passengers to amend or cancel tickets within 24-hours of booking without any additional cost. Beyond 24-hours the same would not be entertained.