As we all know, coronavirus risk disrupted life and all other social activities worldwide, including traveling and trip planning.
Therefore, those are disrupted since the start of the pandemic. So, none can tell how much will the disruption last because of Coronavirus risk.
Coronavirus risk responsible for plummeting price of flight tickets
All-around world prices for flight tickets are plummeting. That’s normal due to the risk and a huge drop in demand for flights.
Therefore, Coronavirus risk since the pandemic contributed in bad ways. Many airline companies are now offering cheap flights to a myriad of destinations.
Furthermore, some people, like a lawyer from Texas, Sery Kim saw the opportunity to engage in a flight arbitrage.
When Kim had seen that AAdvantage miles needed for May flight to Barbados dropped by 77%, she started her hunt for future flights.
Therefore, she purchased 6 round- trip tickets to Washington DC. And, for later in March for 99$ per ticket which usually costs 189$ up.
Additionally, she spent 93$ for a late-April-Miami flight instead of 330$. Also, she booked safari vacation round-trip for 900$ to Cape Town extremely cheaper.
Moreover, many people are using the newly relaxed airline change and cancellation policies caused by the coronavirus risk.
Nonetheless, Scott Keyes, Founder of Scott’s Cheap flights said that something like this has never happened before.
Not only that fares are ultra-low, but there is also the opportunity to cancel or change the trip, which is rare for modern air travel.
What will happen with the airline industry?
Substantially, offering cheaper tickets for future travels due to coronavirus risk is a good strategy for airlines to generate sales and keep the customer’s trust.
Therefore, many people are planning trips from August and onwards, when hopefully the coronavirus risk should become lower.
However, due to increased risk, airlines can get out of business in the worst-case scenario. Which is a treat for passengers also.
Therefore, governments are taking steps worldwide, to aid airlines financially.
Anyhow, despite the recent change in airline policies worldwide, passengers should be careful when engaging in flight arbitrage.
Furthermore, airline companies are reducing their services and the risk is cutting down the demand, so the policies might be different in practice.
Therefore, passengers are eligible for cash refunds for cancellation due to coronavirus risk, but the ones who cancel themselves might get a voucher.
Notably, the world is going to see the consequences in every sense and hopefully, they won’t be fatal for airlines or any other industry.