India directs airlines to offer free seat selection for 60% of seats
Change
India directed the Directorate General of Civil Aviation (DGCA) to require airlines to allow free seat selection for at least 60% of seats on every flight.
Why it matters
Airline pricing teams face a binding restriction on charging for seat selection on a majority of inventory, removing a targeted ancillary revenue stream. Commercial teams must now recalibrate fare and ancillary packaging to comply with the new allocation requirement.
Implications
- • Airlines' revenue management and pricing teams must revise fare structures and rebalance ancillary bundles to recoup lost seat-selection income or accept lower margins.
- • Airlines' reservation and IT teams must update booking interfaces and distribution rules to make 60% of seats selectable free of charge or risk regulatory non-compliance and passenger disputes.
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