Israeli airlines offer flexible tickets for higher fares

• Published date: 25 March 2024
• Author: Stav Livne
• Publication title: Globes (Rishon LeZion, Israel)

Despite the high prices and the uncertainty surrounding the war and a potential escalation in the north, many Israelis are not foregoing overseas vacations and are already booking their summer flights

Israeli airlines have adapted to the situation to make their tickets more attractive and flexible. ISSTA VP marketing and sales Tali Noy says, "There have always been advance sales promotions with flexible terms for cancelation and changes. We have seen good terms in past years, usually in January, but in March, which is usually a very active month, the companies no longer allow flexibility because occupancy is rising. Today, companies are extending the flexible terms with demand for fares with free cancellation for Israeli travelers has increased.

But flexibility comes at a cost, which is today more expensive than ever. Prices for protecting products are derived from the cost of the plane ticket. According to experts in the aviation industry, the cost of a protected ticket ranges from 8%-20% of the cost of the fare, and since these have become more expensive, protected tickets have also become more expensive.

Israel Association of Travel Agencies & Consultants CEO Tali Laufer says, "Economic logic means that the difference in the cost of a flexible ticket compared with a regular ticket is expressed in the level of risk that the airline invests in the customer. If the customer cancels a flight at the last minute, the airline risks being left with an empty seat. On the other hand, tickets that do not allow flexibility do not jeopardize the airline at all."

Cancelation until the day before

Laufer says that Israeli airlines are trying to express their understanding for the situation and allowing postponement of tickets until a later date. She explains, "Nobody is to blame for the situation but this is an economic business. The solution that the airline companies have found is to make the terms of cancellation more flexible and in certain cases the passenger cannot receive a refund but can use the ticket in the future."

Genesis Tours CEO Amir Halle says that although the prices of cancellation have risen but the terms are better with Israeli airlines that are aware of the sensitive security situation and the concerns of people.

ISSTA's Noy explains that El Al allows cancelation or postponement of tickets up to 24 hours before takeoff for passengers departing from Israel before the end of April. "In addition, it's possible to add a safe product that costs $19-20...