THE rising popularity of budget airlines is causing a reduction in the volume of passengers among shipping operators in Cebu, an official from a Cebu-based shipping company said.
“All shipping lines in Cebu are affected by budget airlines. Most of the operators who are complaining are those servicing the Luzon area,” Pinky Sy, Trans-Asia Shipping Lines Inc. vice president for marketing and sales, said.
Although she said that while the company is servicing mainly the Visayas ports, they too “felt the losses.”
In an interview with Sun.Star Cebu, Sy reported a three to four percent reduction in Trans-Asia’s volume of passengers last year.
“Customers are taking advantaged of the very low (airfare) rates but slowly, we are picking up,” Sy said.
Most airline companies have been offering promos on lowered rates to attract more passengers.
Sy said that apart from the advent of budget airfares, the roll-on roll-off (Ro-ro) is also competing with the industry.
Under the Ro-ro system, cargo and vehicle owners drive their cargo and passengers on to a ferry, stay on board for the duration of the voyage and then drive their cargo and passengers off after reaching at their destination.
According to Sy, while budget airlines and Ro-ros pose a risk to the shipping industry, she said that changes in weather condition, high maintenance and fuel costs; the emerging growth of telecommunications; and the change in the travel behavior of Filipinos are still considered the industry’s major threats.
“Filipinos don’t travel that much compared to five years ago because NDD calls (national direct dialing) are cheaper now and broadband makes it even easier for them to communicate,” she said.
That is why, Sy said, the company is hiking its marketing and advertising efforts to level with the competition by offering promotional discounts.
She said the company is offering discounts for advance bookings, and a 50 percent cut in sea fares.
“These are sacrifices we have to make,” Sy added.
However, she remains optimistic that traveling by ship, which is the oldest and once the most popular mode for domestic inter-island transport, will continue to be the “most economical” way to travel around the country.
“Our country is made up of many islands and there is still a market for sea transportation,” Sy said.
According to her, Trans-Asia is looking at new trade routes in Visayas and Mindanao to service a bigger number of passengers in the region.
Trans Asia is currently serving eight ports in the VisMin area including Cebu, Cagayan de Oro, Iloilo, Ozamis, Masbate, Tagbilaran, Tacloban City, and Zamboanga. (MMM)
