In Reply to: The dynamics are changing?? posted by Baldie on Thursday, 7. May 2009 at 11:38 Bali Time:
Air Asias name out there. Probably hasn't cost them anymore than a decent advertising campaign. With the added benefit of forfeited tickets, when customers find they cannot travel at the time they bought the tickets for, due to unforseen circumstances. Or better still, they change the ticket to a much higher priced one. And it gives them your custom instead of their competition. Win, win, win.
Hopefully the people taking advantage of these cheap tickets are people that would not have travelled to Bali otherwise. And hopefully these fares will produce repeat visitors with more friends and family. Otherwise there will not be enough custom for the amount of seats on planes and one or more airlines may have to fold this route.
Of course accommodation will go up in price, in line with demand. But there will be a ceiling for this, as many people holiday in Bali because it is cheap. If it no longer cheap, demand will drop and so will price. And THIS will be very telling for some. If it is no longer cheap will you still go, or do you love Bali for being Bali?