Paper Less Economy

The government of  India has taken a lot of initiative to cut down the usage of paper. The biggest effort to cut the usage of paper was undertaken by IRCTC for internet ticket booking.  Almost 5 lakh A4 size papers were used daily for taking print out.  Now with a declaration that SMS is valid for ticketing is a boon for travellers as well an eco friendly feature in the right direction.  The department of company affairs has mandated that hard copy of annual reports need not be published and circulated to shareholders instead soft copies can be shared. There is no need of hold share certificates in physical form which is under Demat, which has also lead to greater savings.

I feel the day is not far off when we get into the habit of reading newspaper on the net or viewing news on TV channels.  Further maybe even reading novels in PDF forms.  If this logical step is taken forward how long will it take school text books, research papers, examination etc are conducted online.  This would ensure that tonnes and tonnes of paper being saved along with the need for storage.  This will eliminate the need to slaughter trees, reduce chemicals in form of ink production and save storage space for the same.

The most essential credentials such as school marks card, degree certificates, property documents, recognition & awards etc which are vital needs to have hard copy, so that manipulation can be avoided.  The only flip side of these moves is that legally there can be manipulation when it comes to evidence production.  The present system of preserving the evidence in hard copy format helps in court matters.  However finger printing and retina technology will ensure that fake signatures are not incorporated.

Cash less economy too will help in bringing down crime rates.  The introduction of  internet transfer of funds, cellphone transfers and wire transfer of funds helps in reducing paper less transaction.  This will eliminate fake currency under circulation and eliminate crimes in the form of mugging to an extent.

I hope the day is not far when we are able to use less and less of  paper which will help in reducing deforestation.  This will in turn ensure that rainfall does not get disturbed due reduced green cover.  It will help us maintain the balance in flora and fauna too.  Overall moving toward paper less economy should be endeavour at each and every level of enterprise.  Only the accountants will have an issue in accounting I presume.

Startle Rattle and Battle

My aunt arrived in Mumbai en route to Paris to attend my sister's childbirth in 2001.  We discussed about various relatives and exchanged information regarding their status and whereabouts.  After a sumptuous dinner we hit the sack hoping to get up next morning and go for some shopping and sight seeing in Mumbai.  Alas our sleep was broken by a telephonic ring tone.  My aunt received the bad news that her son-in-law was no more.

Aunt was in agony that by hook or crook she wanted to be at her daughters side to pacify her.  She had lost her husband in a tragic railway accident while travelling to coastal Andhra at night.  He was trying to board a moving train and was caught between the platform and train gap.  He was killed in this tragic circumstances.  The cops had identified his body with the help of the identity card in his wallet.  They requested the family member to come over and collect the body.

Meanwhile we ran out of option to send my aunt quickly to Chennai.  The midnight air India flight was a blessing in disguise.  When we reached the airport the plane was still 3 hours from take off.  The Air India counter clerk was rude and asked us to come after half an hour, despite explaining the tragic circumstances.  We waited outside consoling our Aunt.  After half an hour we again approached the counter clerk, he asked us to wait some more time.

This infuriated me and I uttered they want to make money out of the tragedy also.  This got the clerk's attention and he was furious.  He thought i was accusing him of  trying to make money by expecting bribe.  I was worried whether the fares would be hiked up.  Than I clarified that he was trying to make money for the airline concerned.  He was kind enough to explain that this is unlike private airlines.  The midnight flights are heavily discounted.  At last the misunderstanding was sorted out.  He issued a flight ticket for Rs 2200 which was much lesser than Rs 3600 which is the normal fare.  We paid for the ticket through credit card and ensured that my aunt boarded the flight at 3 am.  She was thankful that we sponsored her ticket to Chennai in the hour of crisis.  We got of the clutch of being targeted by the airline official for accusing them of making money.  Thus quick witted think got me out of a sticky situation.

Where is the Party Tonight ?

I remember in early 1980's New Parties was full of fun with booze and dance flowing freely among the youths. The crowd which used to gather in and around the pubs in Brigade and M.G. Road was limited and manageable  We used to park our vehicles discreetly, so that we can get away quickly get back home after the new year countdown is over and greeting the friends is over.  Hotel Imperial used to be famous for parties with their famous Kebbabs.  Booze was never officially served over there, we are supposed to bring in our own bottle and serve ourselves.

Cops used to enjoy the revellers antics and celebrations.  It was never a crime to booze and ride or drive.  But one of the new year we had a tragic news that our common friend passed away in a bike accident, after that at least i decided that i will never drink and venture out in general.  All the New Year celebrations either used to before on 30th instant and used to encourage others too be along with their family members on New Year Eve.

The situation had changed so drastically in Bangalore that the crowd swell at Brigade and M.G.Road was tremendous, i happened to out in 2008, and to my surprise i found all the roads leading to bridges were closed by the cops.  It was the fear that 2 wheeler riders might have an accident on the flyovers which are mostly curvy in design.  Further the cops have started fining heavily if anybody is caught drinking and driving.  It is not worth paying the fines and getting humiliated on a new year day.  Some of the pubs and bars have drop arrangements too on paying the price to overcome this factor.

Timings for the bars have been relaxed this year upto 1 AM, which is a good sign.  Even the metro trains are supposed to up and running upto 1 AM.  In Mumbai too the bars will be open upto 5 am officially, and by that time the local train is ready to drop one to their sub urban home.  We never used to feel the pinch of partying in Mumbai particularly with the fantastic sub-urban train service linked with auto facility at the station.

Hopefully Bangalore will witness better celebration this year.  The weather too seems to be chilled out due to cyclonic effect on the Bay of  Bengal. Guys have a blast during this new year whether at home or outside.

Wishing you all a happy and prosperous New Year.

Flying Straight

The common sense approach to my earlier post in resolving the crisis faced by various airlines after a systematic study are presented herein below :

Scenario 1 :  If the International airline had code sharing arrangement with Air India which was scheduled to depart in another 2 hours time, they would have saved the accommodation cost and reduced the inconvenience caused to the passenger.

Scenario 2 :  The airline concerned could have charged the difference in the fare which amounts to 37 k and accommodated the passenger since he was using their own flight.

Scenario 3 :  It is very to replicate this type of gesture unless the executives are trained to spot the crisis.

Scenario 4 :  Almost all passengers could have been accommodated in the four flights which took off on that day.  All the flights had 30 to 40% booking even assuming 8 flights were cancelled, if there was co-ordination among airlines all passengers would have flown without cancellation.  Majority of the passengers cancelled their flight because the rates charged were exorbitant.

Scenario 5 : Atleast accommodation could have been provided by the airline for the passenger who had to return to their hotel for overbooking.

Scenario 6 :  When airlines are unable to find customers or manage their schedules by code sharing some private enterprises would take charge of their business and messing it up further.

Scenario 7  :  If this airliner can cancel one flight and club two flight passengers they have saved valuable fuel and reduced their losses by 50%. The same logic can be carried forward in code sharing arrangements.

Scenario 8 :  The concerned airliner could have charged the difference and offered the customer the benefit of frequent flyer.  The regular tariff for this route is 25 k and the difference amounts to 13 k.

Scenario 9 :  Travel portal needs to pass on the benefit of no fees for postponement of ticket to frequent flyers

Scenario 10 :  Clarity on ticket pricing should be prevalent.  Dynamic pricing when there is demand amounts to black marketing which should be avoided.  Cancellation and postponement policy should be clearly mentioned on the ticket.

Considering the facts that airline industry is undergoing serious demand crisis, it is time for introspection of their policies.  Pricing of the tickets is the primary issue :

Basic cost without over heads :     Rs 2000/            60 days plus in advance      15%     30 seats

Costing with overheads covered:   Rs 2500/           30 days plus in advance       15%     30 seats

Cost plus profits                           Rs 3000/-          15 > 30 days plus                30%     60 seats

Premium Profits                           Rs 4000/-           Less than 15 days                40%     80 seats

An average realisation of              Rs 3175              100% occupancy

Cancellation charges                                              10% to 25% of the ticket value
Postponement                                                        No levy or 2% or difference in fare.

Well another scenario in case of  low demand equivalent to only 15 to 25% occupancy.  Than it is ideal to club the flights or use code sharing with other airlines.  This would result in grounding of 3 aircrafts and effectively only one airline will be flying turn by turn.  This would mean that losses for all the airline are cut, and it provides an opportunity for maintainence and upgrading skills of pilots.  It will cut fuel consumption by 3/4th which in turn will put pressure on the demand for crude.  Lesser the demand the crude prices are bound to plummet.  The pollution in the air will also be reduced considerably.

All the head honchos of the airline industry need to ponder over how they are going to manage their affairs during recessionery trend.  During boom times no one will be bothered to look into costing and code sharing.  Rather it would be a situation of managing over bookings.  When the flight is being over booked like in railways, it should be known that the passenger is aware in advance that he is booking against RAC.  Who knows safety norms permitting, We may find takers who are willing to stand and fly too for short distance Lolz.

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FLYING BLACK & BLUE

Scenario 1 : Mumbai Chatrapathi Shivaji Airport : 2004 After a nice holiday, shopping and dining experience at Taj Mumbai, my brother-in-law and family of 5 members were to take off to Paris on a reputed international flight next day early morning.  I was surprised to receive a call from my sister stating that they are staying back in Mumbai and they invited us to join for Lunch at Juhu Centaur.  We were surprised that the airline had been overbooked by 20 odd seats.  I believe during holiday season cancellations too are high.  The airline offered free boarding and lodging and next day their tickets were confirmed on priority, lest the airline incurs expense on boarding on lodging again.

Scenario 2 : Bangalore Old Airport :  2007:  Once again my brother in law and family were on a vacation to home town, in between he receives an emergency call from the office that there is a crisis because of  client default.  He had to cut short his holiday and return to Paris.  There was no refund of  ticket and instead he was charged double the price of  the ticket for using the same airline under code sharing arrangement.  He ended up paying 55 K for a fresh ticket and lost 18 K in unutilized ticket.

Scenario 3 : Mumbai Domestic Airport :  1996 :  We receive an emergency call from my mother at 6 am, that my father was no more.  We did not carry sufficient cash, nor could we disturb anybody from borrowing money early morning.  In those there were limited ATMs for drawing cash from the bank.  Ultimately we reached airport and flashed the credit card for booking ticket.  The employee at the booking counter rudely told us to come back later.  We were crestfallen whether we will get the ticket, whether the credit card will be approved, and filled with tension.  Suddenly a Jewish executive of the airline comes and enquires, on knowing our plight, he issues an order to release the ticket and offers us a complimentary breakfast in their lounge.  We were relieved from travel tension and delighted at the response of  a foreigner.

Scenario 4 : Gauhati Airport :  2009 :  We were literally on a last leg of our holiday trip to North East Trip.  When we checked in at the airport we found that the airport was bustling with passengers.  Suddenly we realized all flights are delayed due to pollution from the river bed of  Bramhaputra.  There was no ILFS landing system, I doubt with the simulator too flights would have been able to land.  There was enmass cancellation of flights announced as the day progressed.  I was watching the plight of the passengers some were on emergency trip, some were on personal trip and some were on official trip.  Suddenly in the evening it was announced that probably 4 flights will be able to land and take off instead of  12 flights.  Being an off season ( exam season ) I was sure that only  30% to 40% occupancy of flights.  Suddenly the ticket price shot up to 18 K for a business classs instead of regular 5 K.

Scenario 5 :  Port Blair Airport : 2005 :  We were surprised to find that our co-travellers returning back to Hotel at YMCA Port Blair.   They had to return because their flight was over booked .and the airline concerned did not offer them an accommodation nor conveyance.  They had paid 13 k and whereas had paid only 5 k by the same airline. The same airline was supposed to be reporting Red in their balance sheet. Next day both our families took off in the same flight on time without much hassles of cancellation due to overbooking.

Scenario 6 : Trivandrum Airport : 2010  :  My friend narrated his travails which was hilarious to listen to, he had booked his ticket through a travel portal.  They issued him a ticket subject to confirmation 24 hours prior to departure. I believe the travel portal had chartered a flight from Mumbai to Trivandrum and return.  So when my friend called up the travel portal, the employee concerned told him to stay at the airport, he will announce which airline to board.  He reached the airport at Trivandrum and found to his dismay that there was no sign of his flight departure nor any information.  He called up the employee once again and he told him that he is already in the airport, he re-confirmed that he is in Trivandrum, but the employee is in Mumbai to receive him.  We burst out laughing, than he coolly told him to stay put, he will be arriving by Mumbai flight to Trivandrum which they had chartered and return to Mumbai by the same flight with a different coding.

Scenario 7 : Pune Airport : 2011 :  I had booked flight ticket by a reputed airline from Bangalore to Pune return.  To my surprise I received a SMS on my cellphone that his flight has been preponed.  It was a real tension how to contact him and let him know that instead of  10pm departure his flight will be leaving at 5 pm.   He had switched off his roaming cellphone being on a holiday trip and was using his brother in laws local cellphone for a week.  On the final day of his departure I conveyed my message that he has to depart early since his flight has been cancelled and instead he has to catch an earlier flight.  He was relieved and thankful that his holiday did no go burst.

Scenario 8 : Abu Dhabi : 2011 :  A return ticket booked from Abu Dhabi to Mumbai was not subject to cancellation.  There was no indication on the ticket that it was Non-Refundable ticket.  My friend had to forgo his entire money.  Despite my advice to book in low fare airline which would have costed him 17 k with a provision for open ticket on return, he chose to fly a reputed International Airline at nearly 23 k just because he had a frequent flyer membership.

Scenario 9 : Bangalore BIAL Airport : 2011 ;  A return ticket to Vadodara was to be postponed.  I contacted the travel portal, who said postponement charges would be levied.  When my friend called up to the airline they confirmed that there is no postponement charges applicable.  I confronted the travel portal with this info, they obliged not to charge cancellation since the airline was not charging the same. 

Scenario 10 : Bangalore :  Live fares :  This was astonishing software manipulation from the travel portal concerned.  I was booking an airline ticket two months in advance.  The initial fare featured as 14 k, suddenly next minute fare jumped to 15 k.  The final experience was when I visited a reputed airline to enquire group ticketing to Port Blair from Bangalore I forgot to mention 30 pax.  I thought I had made a blunder, the counter girl who quoted 26 k return per pax.   I was damm pleased that it would fall within their budget.  Next day when I wanted to reconfirm the counter gal said sir the cost now is 33 k for a return for 30 pax.  A jump of nearly 7 k, and my clients cancelled their trip.

Now if one were to read between experience and decipher how the airline business operates, no wonder one can understand what a messy affair and complicated affair it can be in the rat race to scorch up the number game.  When there is an option of  code sharing, fuel prices have breached the threshold of more than 50% cost of operation and majority of tickets are booked on advance payment,  The fundamentals of scale of economy is over-ridden in group bookings, promotion coupons tariffs are charged higher than regular fare and frequent flyers are sometimes taken for a ride.  Under the above mentioned circumstance I am wondering whether I am in the right business ?  If one were to ethically thrive in tourism how does one go about getting involved in this business.  The height of heights was a comment from one five star group manager that Hotel business is like Airline business, nowerdays they don t reveal their tariffs on their portal.  I am 100% sure that the Head Honchos of airline and Hotel industry are not aware what is happening in their domain on day to day basis.   If they combine and put their heads to-gether within 2 days an appropriate solution can be arrived and ensure their business thrives even during bad times.  Guys if you were to analyse the above case study scenarios, what will be your solution to the problems created.  Let us debate for good times to be back again.

Disclaimer :  I have refrained from naming the airline or hotel group inorder to ensure that sanity returns in the industry rather than continuing this trend of  unethical practice. This is just an attempt at introspection to extract appropriate solutions to an industry which is hurt and striving to keep its head above water.