Airlines over-charging 40% on Greek fares
Hundreds of thousands of persons travelling each year are falling prey to a major rip-off orchestrated by the airlines, who are charging about CYP 12.5 per person in hidden costs that are never revealed to the public, charged Akis Kelepeshis Managing Director of Top Kinisis and the Chairman of the Association of Cyprus Travel Agents (ACTA).
In an exclusive interview with the Financial Mirror, Kelepeshis said the rip-off should stop immediately, otherwise it risks damaging the prospects of the industry, one of the few bright spots of the economy.
“We (travel agents) cannot tolerate the fact that while airlines are advertising rock-bottom rates to attract customers, they are charging excess fees on the unsuspecting public without informing them,” said Kelepeshis.
Citing an example, Kelepeshis noted that while the airport tax at Larnaca airport is CYP 9 per person and CYP 20.5 at Spata (Athens), airlines here are charging CYP 41.5 per person in airport taxes on people travelling to Athens, the most popular destination for Cypriots.
The difference in price is significant considering the fact that some airlines are advertising round-trip fares of CYP 30-50 to Athens. Kelepeshis, who was recently elected to head ACTA, said the Association will file a complaint with the Consumer Association and other relevant authorities in order to put a stop to this practice, in order to bring increased transparency to the market and not give in to accusations that the surcharge is being made by the travel agents.
A random call to Cyprus Airways and Helios Airways confirmed the airport tax of CYP 41.50 while Aegean Air quoted CYP 20.5 for airport taxes, but their fare was significantly more expensive.
TRUSTING THE FIGURES
Referring to incoming tourists from abroad, and when asked to comment on the fact that there is a moderate increase in the number of arrivals yet revenue is declining, Kelepeshis said this trend is likely to continue.
He blamed the steady deterioration in the tourism industry on the fact that the CTO strategic plan on tourism is not being implemented.
“I cannot understand why the strategic plan is not being implemented.”
Kelepeshis also has his doubts about the accuracy of the tourism statistics reported by the Statistics Department, adding that a more correct strategy would be to take the exact number of hotel stays by the tourists.
“I suspect that included in the arrival figures are thousands of expatriates who have purchased a home here and an increasing number who arrive through the government controlled airports but then head to the occupied areas,” said Kelepeshis.
OUTGOING TRAVELERS
Kelepeshis is bullish on the prospects of outgoing tourists — Cypriots travelling abroad, adding that helped by easier financing from the banks, a record number of Cypriots are expected to travel abroad this year.
“I expect 7-8% growth in the number of packages sold to 600,000 from 560,000 in 2004,” said Kelepeshis adding that he expects the value of the packages to be unchanged due to the reduction in prices of airfares as a number of charter flights have started operating to the popular Greek islands at very affordable rates.
The current mix of 40-45% heading to Greece and 15% to the UK is expected to remain constant, with Egypt and Constantinople the fastest growing destinations for Cypriots.
Cypriots love to travel to Greece because of the same language and ethics as they basically feel at home, with the majority being very price sensitive, while an increasing number looking to explore new places are more quality demanding, with central and eastern Europe increasingly attracting good numbers.
