by Karen Teng

WITH the global recession aggravated by the threat of Influenza A (H1N1) flu, airfares are at their lowest in years and now is a good time to buy your air tickets or go on tour packages, say experts in the industry.

Airline fares could be up to a few hundred dollars less, compared to the boom times in recent years.

Now that the flu outbreak is not as deadly as it was initially feared, travel demand is expected to pick up.

According to Chan Brothers Travel, the popular destinations for the June school holidays are China, Europe, South Korea and Taiwan.

Its spokesman, Ms Jane Chang, says that seats for some tours with specific dates are still available. These include travel packages to Beijing, Shanghai, Vietnam and the Gold Coast in Australia.

"Taking advantage of the new, lower and ad hoc promotional airfares, we are also better able to offer value packages at pocket-friendly prices, which is much appreciated by our customers in the current sluggish economy," says Ms Chang.

If you prefer to venture out on your own and are flexible about your travel dates, the major carriers offer cheap airfares that you may find hard to resist.

For example, Singapore Airlines (SIA), SilkAir, Thai Airways, Garuda, Jetstar Asia and AirAsia all offer special promotional fares to fill up their planes.

SIA flights to Beijing, Taipei or Osaka cost $598 per person. For Paris, its $1198, and you can fly on its A380 plane from next Monday.

Thai Airways' ticket to Dubai or Kathmandu costs $775.

For Garuda, a seat to Bali costs $284 while its direct flights to Ho Chi Minh City are priced at $266.

SilkAir is charging $168 for Penang, its latest Malaysian destination, when it begins flying there next Monday.

Of SIA's special offers, its spokesman Mr Nicholas Ionides, says: "Demand for travel has dipped with the onset of the global economic slowdown, and this has affected not only airlines but also countries dependent on tourism.

"Having promotional fares is a way of directly stimulating latent demand.

"Fares are dynamic and vary according to various factors, for example, fare conditions, the type of aircraft used, the route and the time of the year when travel is taking place."

The airlines are counting on the cheaper fares to get more business.

AirAsia's spokesman says: "We promote various destinations to strengthen and grow their tourism industries which, in return, ensures sustainability for our business and economy as a whole."

To sweeten the deal for its travellers, Jetstar Asia recently introduced a discount of $15 off its fares per way for those without check-in bags.

The budget carrier also removed fuel charges and administrative fees so that passengers pay only for the airfare and airport taxes.

For the promotional fares, terms and conditions apply.

For example, you may need to make your booking only online or within a limited time, be willing to travel during a stipulated period or only on selected flights.

Two people may also be required to travel together to seal the deal, as with the recent offer from UOBTravel with Cathay Pacific.

For a limited period only, the travel agent's online portal offered an all-in return airfare to Hong Kong for two at $698.

An expert in services marketing, Dr Jochen Wirtz of the National University of Singapore's Business School, says he is not surprised by these marketing strategies.

"These are standard revenue management practices in the pricing of any type of service with high fixed costs, fixed capacity and fluctuating demand."

He says that experienced travellers who are familiar with the mechanics of promotional fares are the main beneficiaries of such deals.

Ms Esther Tan, 29, a civil servant, and her fiance recently flew to Australia for their wedding photography.

The couple each paid $800 for their return SIA tickets to Melbourne.

She says: "It was a two-to-go offer with limited seats on a limited choice of flights but it was a good all-in deal, though last month, there was an even better one with Emirates at only $500 per ticket!"

This article was first published in The Straits Times' The New Market. It is produced by the Special Projects Unit, Marketing Division, SPH.