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20 percent rise in air ticket prices likely
By Hamdan Al-Harbi
Published in The Saudi Gazette on 07 - 02 - 2010

The price of airline tickets is expected to rise by 15 to 20 percent this year as the Kingdom witnesses an increase in the number of people arriving to perform Umrah, according to Fakadnil Tawfiq, manager of an Asian airline company.
A number of airline experts say that the drop in air ticket prices last year was due to the effects of the world economic crisis and the fear that people had of contracting swine flu. Those who had planned to travel last year but did not are expected to travel this year. This, experts say, will increase the demand for airline seats which will have an impact on the price of air tickets.
Tawfiq said that some airline companies have started raising their prices even before March, when the prices are expected to begin to rise due to the beginning of the Umrah season. He said those who did not perform Umrah last year would do so this year in addition to those who were already planning to perform Umrah this year.
Ahmad Al-Idrisi, manager of a Gulf airline company, said that last year's drop in air ticket prices was due to the forecast that the Saudi market would witness a decline in the number of visitors due to the economic crisis and the swine flu pandemic. However, he pointed out, that more airline passengers arrived in the Kingdom last year than in 2008. Al-Idrisi expects 2010 to witness a further increase in passengers in the Middle East region in general and the Kingdom in particular. This, he feels, will be due to the general recovery that is taking place in the travel and tourism market.
However Abdullah Al-Rajhi, member of the Tourism Committee in the Jeddah Chamber of Commerce and Industry (JCCI) does not feel that air ticket prices will necessarily increase. He said that travel this year would be completely different from last year. While he expects more people to travel this year, he said that airline companies will use systems that ensure early booking of seats and that guarantee that all the seats on a plane are booked. This, he said, will lead to a successful 2010 season which might actually result in a slight decrease in prices. He stressed that in the end, it is the law of supply and demand that determines whether prices rise or fall.
Al-Rajhi expects the Umrah season to be excellent, as those who changed their mind and did not perform Umrah last year will come to perform the rituals this year. He expects a 20 percent increase in the number of Umrah pilgrims this year.


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