SP-Rio tickets with free reschedule can raise aerial revenue by up to 77%

by Andrea
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A flexible -dated airline ticket system can increase revenue per customer customer by up to 77%, as well as contribute to the reduction of lawsuits between customers and companies in the sector and, at the time, reduction of ticket prices. This is what shows the unprecedented study “Contracts, Risks and Flexibility: Rethinking the Air Bridge in Brazil”, from the Sphere of Studies and Innovation Institute, the academic front of the think tank Sphere Brazil, prepared by researcher Maurício Bugarin, from the University of Brasilia (UnB).

The study proposes a modernized model of air bridge in Brazil, based on a more flexible tariff system with free flight reschedule – a product with a kind of unforeseen events already built into its price.

According to the survey, the new arrangement could represent up to 77% for the airlines as expected by a client, who would choose to pay a little more expensive to gain additional flexibility and benefits.

SP-Rio tickets with free reschedule can raise aerial revenue by up to 77%

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The chart below shows the relationship between the probability of changing an emergency passage and the company’s expected revenue variation by client in three scenarios defined by the author: Pessimistic, intermediate and optimistic.

See below:

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Source: Calculations by researcher Maurício Bugarin, from the University of Brasilia (UnB), in the study “Contracts, Risks and Flexibility: Rethinking the Air Bridge in Brazil”, from the Sphere of Studies and Innovation Institute. The pessimistic scenario corresponds to the air bridge model where the only benefit is insurance; The intermediate scenario includes the benefit to the consumer of the flexibility of reschedule; And the optimistic scenario also includes the financial benefit for the early purchase company.

In the pessimistic scenario, it is considered only free reschedule, without additional gains. In it, gains in the company’s revenue start with a probability of change in tickets due to an emergency of 12%. In the intermediate scenario is incorporated the psychological benefit of consumer tranquility when he will not lose his passage in an emergency, and there are revenue gains even with a probability of change in the 30%passage. Already in the optimistic scenario, it is also added the financial gain of the early purchase, which allows the company to receive the resources in advance and use them more efficiently.

It is in the last two scenarios that the positive effects of the new contractual arrangement become more expressive and comprehensive.

Gradual adoption

The study suggests a gradual, voluntary and incentive adoption for this new system and a pilot project implemented in 50% of flights on the São Paulo Route (Congonhas)-Rio de Janeiro (Santos Dumont), aligned with a temporary reduction of ICMS (Tax on Circulation of Goods and Services) of aviation kerosene, without direct subsidies, for the companies they want to join.

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According to Sphere Brazil, the survey data will be presented in the coming days to the governor of São Paulo, Tarcísio de Freitas, and Rio de Janeiro, Claudio Castro.

Judicialization – and its impacts on ticket prices

In addition, the new contract models would bring encouraged extrajudicial resolution clauses, which would aim to reduce the judicialization of customer dissatisfied with airlines in the country – who spend $ 1 billion, or 98% of the amount spent by airlines around the world with expenses with legal teams, costs and payment of court indemnities, according to the Brazilian Association of Air Companies (ABEAR).

The proposed clauses offer simplified channels for conflict resolution, with automatic compensations and additional benefits to the passenger who chooses the non -litigious pathway, but without restricting his constitutional right of access to justice.

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According to the study, this type of contractual measure “can significantly reduce the volume of repetitive and low value actions, contributing to a more balanced and predictable institutional environment.”

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This predictability can directly impact on the air of air and, at the limit, the consumer. Legal costs, estimated by the International Air Transport Association (IATA) are passed on to users, raising tariffs for $ 10 to $ 12 per ticket sold, creating a kind of “invisible tax” that is embedded in ticket prices and penalizing “passengers that have never triggered justice”, especially the most sensitive to price, and compromises “the efforts to massage air transport”.

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“Today there are two main buying dates for a flight: the early purchase, whose price is lower, and the last -minute purchase, when you pay more for the ticket. With the possibility, tickets would be cheaper on average, as last -minute purchases would decrease. And, on the other hand, the amount spent by companies in the indemnities – around $ 6,700 per share, the average price of a home passage in the country At R $ 670 – it would fall, opening margin for a potential price reduction, ”explained Fernando Meneguin, academic director of the Sphere of Study and Innovation Institute.

Is the quality of service provided by air in Brazil good?

Is the fact that Brazil is a leader in litigation between consumers and airlines would not be explained by the bad service provided by companies in the sector? According to the study, no.

The prize, Latam Airlines and Azul Linhas Aéreas on the list of the 100 best airlines on the planet – 43rd and 71st place, respectively. In addition, sectoral statistics cited by the study show are better in Brazil compared to the world: and only about 3% of flights are canceled – numbers compatible with international standards – while in terms of luggage loss, Brazilian airlines register approximately 1.6 passengers, while the global average is 7.6 lost materials.

The study points out that the high number of disputes in Brazil does not result from lower services, but from internal factors, such as pro-consumer jurisprudence, which facilitates the objective responsibility of companies, even in cases of failures without significant material prejudice; The presumed moral damage, which says that contractual non -compliance (a delay, a cancellation) already configures in itself an indemnifiable moral damage; The existence of Special Civil Courts, which offer a quick, free and simplified access to justice for less value causes, and even the Brazilian culture to resort to the judiciary as a natural means of resolving consumer conflicts.

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