Discussion on Gulf Airlines Competing for Market Shares

Travelers and tourists in the United Arab Emirates are reaping significant benefits from price war raging among Gulf airlines. The objective of this war is to get the most market share. On various Middle Eastern routes, the airlines are competing. Fares have been decreased because of the decrements in oil fares. Promotions have been launched by Qatar Airways, Etihad Airways, and Emirates for attracting more passengers and increasing their shares.

In accordance with the data from the Cleartrip travel portal, a significant drop was observed by customers in a single month from Emirates. For instance, in the last three years, a drop of 12.2 percent in fares has been imposed by Etihad Airways.

According to Cleartrip’s Chief Revenue Officer, traveling fares have been decreased by airlines because of the decrements in prices of crude oil. He explains that crude oil has been the main driver in decreasing prices. It has been observed by analysts that promotions have significantly increased this year in comparison with 2015. All of the airlines seek to secure bookings before others.

Even though prices are being decreased, average fares to Europe from the UAE have increased. The reason is that demand to Europe from UAE increases on an annual basis. However, the same fares are not increased by Qatar Airways. In addition to it, with the reduction of its fuel surcharge, it is capable of decreasing its overall pricing.

Overall, it wouldn't be wrong to say that competition is only increasing. As figures suggest, 2019 might experience even more promotions and decrements in cost. Ultimately, it depends on passengers and how they are attracted. For instance, it is possible that airlines might lower their prices even more to target them.

These steps are being taken to increase the market share by airlines.