The holidays are a busy time of year to travel - and the airlines know it. While cheap flights and vacation travel deals were available last year, don't expect many deals this year. There are a number of reasons why airfares will increase for Fall and holiday travel.
Right now, there are some last minute travel deals for Labor Day and some airfare sales for the Fall. There may be some deals for Thanksgiving and Christmas next week. However, expect the airfares to go up for holiday travel.
Why airfares are increasing
Holiday travel is always a busy time and airfares for Thanksgiving and Christmas are always higher than other times of the year. However, a number of factors may mean a huge increase in airfares for this year.
1. Demand for travel is up - People are traveling more this year than last year and the airfares are reflecting that. Labor Day travel is expected to be up nearly 10 percent over 2009, following a similar increase in summer travel. In 2009, many people stayed home during the holidays due to the economy. If summer travel is any indication, expect people to be traveling for the holidays - and airfares to reflect that.
2. Airlines have noticed the increase in travel - Airlines realize that people have been traveling more this summer and so prices are going up as demand is going up. For the holidays, airlines also expect a modest increase in traffic over 2009 so airfares will reflect that increase in traffic. Also, business travel has started to pick up again and that is a big boost for the airline revenues.
3. Fewer flights - In order to fill the planes, airlines have cut down on the number of flights. With the Continental and United merger, there will be fewer flights as well as they are consolidating their flights out of cities. Rather than spend money on more flights, they are filling up the flights that they have. With supply down and demand up, simple economics are a main reason airfares will be up this year.
4. Higher fees - While many people may moan about the fees airlines are charging, holidays are the one time that people will pay them. For those who may not travel much, many people may not be aware of baggage and peak day travel fees. And some of these fees are built into the price of the airfare. Delta has allowed their platinum members to check the first bag for free. Others, like AirTran and Spirit Airlines, have increased baggage fees or started charging for checked bags.
5. Demand for international travel is up - Aside from business travel, international travel is where airlines make their money. Demand for international travel is up and airfares are at their highest levels since 2005, some as much as 30 percent. Don't expect this to change.
6. It's the holidays - Fall is typically the low season for travel. However, after many people skipped holiday travel plans last year and stayed home, demand for Thanksgiving and Christmas is expected to be up this year. These are always some of the most expensive flights of the year so expect prices to be high.
The good news
There is some good news for travelers. Fall is shoulder season and is one of the best times of the year to fly. There will be some cheap flights and travel deals for September, October, and early November. Also, news of a double-dip recession may scare the airlines and keep things in check. So while airfares will be higher, it could be worse.
Traveling during the holidays can be busy and stressful. There are many things about air travel that annoy passengers. With the weather forecast for winter looking bad for some parts of the country, travel delays could play a factor in holiday travel as well. The number of passengers getting bumped is on the rise as well.
So if you do plan on flying for the holidays, save money wherever you can. Check out the holiday travel tips and look for travel deals and cheap flights for Fall and the holidays. They may not be great deals like you've seen in the past but with the busy holiday travel season, increased demand, and fewer flights, finding the best deal you can will save you money when you travel.
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Comments
Road-trips keep looking better and better.
Well, at least there is some "good news"! Bummer...
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