Travel agencies said airlines have recently turned to imposing new changes to the fuel tax on travel tickets, in light of the recent rise in oil prices, noting that fuel makes up a large part of the cost. operating of air carriers, at about 40.% in the current period.
She told Emirates Today that airline ticket prices have seen varying increases, depending on travel destinations and the level of demand for them, but on average they are still at acceptable levels during this time of year and are expected to rise. at high rates during peak times.
The Executive Vice President of Al-Rais Travel Company, Muhammad Jassim Al-Rayes, said that in light of the recent rise in oil prices, airlines have used the fuel tax adjustment for ticket prices, noting that some companies have made one adjustment so far, while Since companies adjusted the tax twice, and another three times recently.
He explained that the increase in fuel costs forced companies to review this tax more than once and in a short period of time.
Al-Rayes said airline ticket prices have seen varying increases, depending on travel destinations and demand levels for them, but on average they are still at acceptable levels during this time of year, indicating that travel demand is ende. strong, and is marking a steady increase, whether for visiting or entertainment purposes.
Al Rayes noted that air carriers are forced to face high oil costs as they make up a very large portion of the total operating costs, advising customers to plan the trip in advance and book early, especially on time. of peak, to control travel expenses.
For his part, the General Director of the Al-Faisal Travel and Tourism Agency, Yassin Diab, said that the airline ticket prices are marking a significant increase, in light of the increase in fuel prices over the last period, emphasizing that with fluctuations in fuel prices and the inability to predict their future levels, fuel prices have fluctuated, the burden exceeding the budget allocated by traders to travel during the summer.
Diab stated that the airlines recently addressed the change of the fuel tax for travel tickets, while other companies turned to the issuance of a new tax change, with prices continuing to rise, agreeing that fuel is a part of large of the operating cost of air carriers, and therefore its impact will be noticeable.in ticket prices.
Flexible pricing policy
Diab stressed that the airlines closely and continuously monitor the increase in aircraft fuel prices, to regulate ticket prices and to pursue flexible pricing policies that take into account several factors, including competition with other companies, and offer encouraging prices in at the same time as they work to control their operating costs.
Diab clarified that travel agencies receive a notice of fuel tax modification from some companies, while other companies use its increase without expressly announcing it, in order to add to the cost of the ticket as part of the total fare.
He stressed that these increases in fuel costs will be reflected in travel ticket prices, especially at peak times, as demand grows to record levels.
On the other hand, the head of Al-Abedy Holding Company for Tourism and Travel, Saeed Al-Abedy, said that the airlines have used new changes in the fuel tax in recent days, expecting that the fuel tax will continue to change from the air . carriers constantly, with fluctuating oil prices.
Al-Abedy pointed out that fuel accounts for a large share of companies’ operating costs, which can currently reach around 40% on some airlines, and therefore prices are constantly monitored to ensure cost-taking pricing policies. and availability. of tickets that encourage travel.
He stressed that the change of the fuel tax for travel tickets during the last period and its increase more than once, in case of new increases in the price of oil, will affect the average prices throughout the year, especially in time peak, emphasizing that this tax is a very important factor in determining the total price of a ticket.Travel.
At the same time, he mentioned that air ticket prices are subject to several variables and factors that depend on market conditions. He said: “Apart from the increase in the fuel tax, the level of available seats on flights, the travel destination and the power of demand for them, have a major role in travel costs, especially in peak times.”
• Air carriers monitor prices to ensure pricing policies that take into account costs and encourage travel.
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