ELAL Campaign Offers Benefits for Early Bookings (Insight)

2024-07-04 · epsilontal · Symbols: ELAL.TA
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Lock in "attractive" prices now, as they will become standard once foreign airlines return. This strategy helps $ELAL.TA to maintain its market share for the remainder of the year.

  • $ELAL.TA campaign calls for travelers to book earlier to secure attractive prices.
  • As a result, travelers fear that everyone else is booking in advance, leading them to book even earlier to secure prices.
  • However, booking too far ahead makes travelers feel the need to insure their tickets for cancellations. The cost of insurance per flight is $19 ("ELAL Protect").
  • This flow leads to a cyclic inflation trend.

Impact:

  • Early bookings generate interest income for the period without any associated costs.
  • Income from insurance goes directly to the income statement's bottom line.
  • In case of a cancellation, rates are already high due to the majority of seats being taken in advance, allowing the company to sell the canceled seat at a higher rate.

Great move and decision-making by ELAL's management.

Holding, not a recommendation.