A Study on Pricing Strategies of Indigo Airlines at Coimbatore City

Abstract

The airline industry in India has experienced rapid expansion and intense competition over the last decade. As one of the leading low-cost carriers, IndiGo Airlines plays a significant role in shaping airfare pricing behaviour, particularly in regional markets such as Coimbatore City. This study investigates the pricing strategies adopted by IndiGo Airlines on routes originating from or terminating at Coimbatore Airport, aiming to identify how pricing influences demand, customer satisfaction, revenue generation, and competitive positioning. Data were collected through a structured questionnaire distributed to passengers, airline staff interviews, and secondary sources such as fare charts and industry reports. The study employs descriptive and inferential statistical tools to analyse fare variations based on factors such as seasonality, booking lead time, competition, and service differentiation. Findings reveal that dynamic pricing, fare bundling, demand forecasting, and competitive match-pricing are central to Indigo’s strategy in Coimbatore. The airline’s pricing approach significantly impacts traveler decision-making, with passengers highly sensitive to fare fluctuations and ancillary charges. The study recommends enhanced transparency in fare composition and the adoption of customer loyalty incentives to improve market share and customer retention. Policy implications include the importance of regulatory frameworks that protect consumer interests while allowing airlines the flexibility to innovate pricing structures.