As Romanian tourists have more money available to spend on holidays, the number of charter flights has doubled to around 1,500 return charter flights operated by travel agencies in partnership with airlines during this summer season, according to the preliminary data released by the National Association of Travel Agencies (ANAT).
Given that most of the aircraft used for charter flights have between 100 and 150 seats, travel agencies will sell almost 200,000 travel packages including charter flights. Thus, against an average price of 400 euros for an all-inclusive trip to Antalya, the total value of charter flight packages sold during the summer season is likely to hit 80m euros.
"The number of charter flights rose as Romanians' living standards have improved, (...)" said Traian Badulescu, ANAT representative.
Thus, though charter flights are not their core business, airlines get higher profit margins by operating such flights. In the case of charter flights operated in partnership with travel agencies, aircraft are entirely rented by a travel agency or several partner agencies. An agency booking such seats has the obligation to pay for them even if it does not manage to resell them to tourists.
As far as airlines are concerned, this translates, in profitability terms, into a 100% occupancy rate, while in the case of travel agencies profitability depends on the number of customers they manage to win. Generally, travel agencies get an occupancy rate of around 90%. "The busiest period starts from early August and ends around September 10," says Ondina Dobriban, a programme manager with Paralela 45 agency operating 11 charter flights per week.
The cost of renting an aircraft for a charter flight is computed by multiplying the cost of a ticket by the number of seats. However, it is worth considering travel agencies get certain discounts making plane tickets cheaper and travel packages more attractive.
According to ANAT figures, including only member travel agencies (around 800), TAROM operated around 233 return charter flights during the last summer season, ranking second after Carpatair.
The airline to have achieved the biggest increase in the number of charter flights this year against 2006 is Blue Air.
In principle, say players, charter flights mainly target medium-income tourists, being a cheaper way for them to travel abroad.
This does not mean, though, that there are no expensive packages. However, big turnovers are derived on the back of average tourists on this segment.
According to Badulescu, charter flights account for some 50% in the overall summer travel market. Market players have budgeted around 25% higher revenues from charter flights this year against 2006, with the overall charter market likely to reach 80m euros at this end of this year.
Charter flights
Their number doubled, to around 1,500 return charter flights operated by travel agencies jointly with airlines during this summer season as Romanian tourists can afford to spend more on holidays
Particularly target medium-income tourists, but there are also expensive packages aimed at luxury tourists; the biggest turnovers are derived from average tourists on this segment
The overall charter flight market is likely to reach 80m euros at the end of this year
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