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He world football is really good business for airlines? The harsh vision of THERE IT IS facing the myth of high demand in sporting events.
Within the framework of the 82nd Annual General Assembly of THERE IT IS on Rio de Janeiro, an unconventional but highly relevant topic came to the fore during the press conferences: the real impact of major sporting events, like the soccer world cup, in the operation and profitability of airlines.
The World Cup is not a gold mine
Far from the usual euphoria that surrounds these events, Willie Walsh, Director General of IATA, offered a technical perspective and, above all, realistic that could surprise more than one.
For Walsh, the idea that a world It is a gold mine for aviation., often, a misunderstanding. Based on your experience in the industry, These events usually have a clearly negative impact on airlines..
The reasons? The manager broke down three key factors:
- Disruption of the business traveler: Large events often disrupt the normal dynamics of corporate travel. Companies choose to postpone meetings or transfers due to operational complications, which directly impacts the premium passenger segment, which is vital for the profitability of companies.
- The hotel factor: The disproportionate increase in accommodation costs during these periods discourages demand, causing business travelers to avoid or delay their trips until the event is over.
- Traffic imbalances: The World Cup generates a massive flow of passengers in one direction. This makes flight management difficult., since the necessary balance is not achieved in return traffic, complicating the operational efficiency of aircraft.
"Ridiculous" prices and contained demand
Walsh was particularly emphatic about the current price situation. The executive noted that the "ridiculous" costs of both air tickets and hotels have curbed travelers' enthusiasm., which explains why traffic volumes are not meeting the expectations that many had initially projected.
«It is a disruptive event and, usually, net negative for the business», declared the Director General of IATA, suggesting that, at the end of the day, Airlines prefer the stability of scheduled traffic over the volatility and low profitability that accompany these global sporting events..
As the world prepares for football fever, the airline industry seems to look at the calendar cautiously, remembering that behind every flag and every goal, Behind-the-scenes logistics face challenges that, often, eclipse the expected economic benefits.
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