Few months ago I had listed 6 innovative ways through which RyanAir generates extra revenue. Today while I was booking flight tickets through Indigo, I discovered that this culture has started in India too.
Almost everyone I know has a preference for seat. I personally like one close to the emergency exits, where the aviation regulations prescribe extra large legroom to facilitate movement of passengers. A lot of people prefer window/aisle seats. Some of them want to be close/far away from the toilets and bars (in case of international flights). Now Indigo allows the passengers to book seats according to their preference for a fee.
I believe it is these innovative revenue schemes that would allow these airlines to stay abreast of the fierce price competition.
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