Lebanon remains connected to the world as travelers continue to depart from the country and return to it seamlessly, thanks to Middle East Airlines (MEA), the national carrier and sole operator at Beirut Rafic Hariri International Airport (BRHIA). However, ticket prices have skyrocketed, and travel agents attribute this increase to the elevated costs associated with services during wartime.
Lebanese authorities are resolute in their commitment to maintaining the “intact” reputation of BRHIA, ensuring stringent security measures, order and adherence to the law.
Furthermore, caretaker Minister of Interior and Municipalities Bassam Mawlawi and caretaker Minister of Transport and Public Works Ali Hamiye emphasized on Monday that any landing aircraft requires authorization from the Lebanese Army. They also highlighted that inspection operations are carried out rigorously to eliminate any risk of security breaches.
Ongoing Israeli airstrikes in several regions throughout the country, particularly in the southern suburbs near the airport, contribute to rising ticket prices, among other factors. However, Mohamad el-Hout, the CEO of MEA, refuted on Monday claims of exaggerated fare increases. He also presented the press with a list of the maximum prices charged by the airline since the beginning of summer.
Yield Management and Allocations
However, Hout’s advisor, Mohamad Aziz, explained that given the current circumstances in the country, customers may encounter rising ticket prices due to optimal commercial management practices, commonly known as yield management.
This commercial practice is a pricing and capacity management technique primarily used in the airline and hospitality industries, which operate with limited capacity and aim to maximize revenue while minimizing costs.
In other words, due to the high demand for MEA tickets, the airline will continue to set prices at the upper end of the range.
Similarly, travel agents are also taking measures. Many have adopted the practice of allotments, which involves advance reservations or pre-sales based on a quota of bookings allocated to them. This strategy allows them to resell tickets at inflated prices, capitalizing on high demand and the urgency of customer requests.
https://thisisbeirut.com.lb/articles/1298459/airline-tickets-wartime-premiums#