Posted September 07, 2018 17:20:56 A surge in air ticket reimbursements is expected to boost airline profit by as much as $1 billion in 2019, according to a study.
Key points:The study predicts air ticket refunds could be as much at $1.2 billion in 2020A report from the National Australia Bank says air ticket reimbursement will grow to $1 trillion by 2019A study from the Australian National University has found air ticket refund rates could grow from just $1 to $2 billion by 2019.
Key point:Air ticket reimbursement could grow to as much $1B by 2019Air ticket reimbursement is a relatively small part of the airline industry, accounting for less than 1 per cent of revenue, according the study.
However, the study suggests a return to an air ticket rebate could boost the airline’s profits.
The study by the Australian Academy of Public Health and the Australian College of Medical Toxicology suggests that a return of the air ticket voucher to a cash rebate of 20 per cent is feasible.
Air ticket vouchers can be used for all kinds of things, including food and beverage, but the study found they can be very difficult to use for medical purposes.
“The current medical benefit is just not there for the medical consumer,” Dr Jennifer Meech, a professor of medicine and public health at the University of New South Wales, said.
“We need to consider this and make sure that medical benefits are there, and if we do not, we need to look at other options.”
Dr Meeech said the current medical reimbursement system is not working for the public.
“What we really need is a voucher scheme that allows the medical system to actually help us with these medical expenses,” she said.
Air travel is one of the biggest costs for Australian families, with an estimated 1.7 million people going to hospital every year.
The National Australia Group, the country’s largest travel company, estimated air ticket revenues for the past year could be around $1,600 million.
Air trip reimbursement is the cost of the refund for a flight that was cancelled or delayed by the airline, such as a cancellation of a flight or the loss of an aircraft due to an emergency.
The report said a voucher could potentially increase air ticket revenue by about $1bn a year, which would be the same as the total value of a typical air ticket.
The total value is $2.2 trillion, according a report by the Federal Treasury published in December.
However the study did not give any figures for the value of the rebate itself, instead looking at how many people would receive it.
Dr Miech said the total amount of money a voucher can generate was uncertain, and could vary from individual airlines.
“If it’s the same amount of voucher that people are getting, you may see a different amount of revenue for that individual airline,” she explained.
“However, if it’s significantly different, you could potentially see an increase for that particular airline.”
Dr Anne Lefkowitz, a lecturer in the Public Health Sciences at Monash University, said there was a lot of uncertainty around the amount of cash that could be generated by air ticket vouchers.
“You’re not really sure how much is actually available, so it’s hard to say how much the total benefit is going to be,” she told the ABC.
“It’s difficult to say whether that voucher is going the same way or different.”
The Australian Institute of Health and Welfare (AIHW) has a calculator on its website to help determine the value for medical services.
“In Australia there are about 30,000 medical service providers and more than 15,000 pharmacies.
The value of this voucher is about $50,000 for each person, so that’s about $200,000 in value,” AIHW deputy director, Professor Peter Kettle said.
Professor Kettle warned that the increased value could be misleading.
“When you go into the calculator and you see the value that we’re giving you, you’re going to think that it’s a lot less than it actually is,” he said.
The AIHw said it was working with other health organisations to develop a voucher plan.
“As a matter of policy, AIHWs can be reimbursed up to 30 per cent for out-of-hospital or emergency care services,” it said in a statement.
“They can be provided at no cost to patients, regardless of the cost to the health system.”
Topics:health,medical-research,health-policy,health,travel-health-and-safety,travel,air-transport,airport-security,airline-industry,travelers,australia,united-statesFirst posted September 07.2018 19:42:51Contact Paul Jelinek