Despite grim economic reports heading into 2009, Cheapflights.com predicts cheaper airfare and more efficient travel in the coming year.
In Travelnomics: Clearer Skies Ahead, Cheapflights.com interviewed industry experts from the Federal Aviation Administration, U.S. Department of Transportation, trade associations and airlines and hotels to get their insights and predictions on the coming year. Combined with advertiser deals from Cheapflights.com deals database, the Cheapflights.com travel experts predict that not only will airline prices continue to drop in 2009, but travelers will get more bang for their buck at airlines around the nation.
“People work so hard in the U.S. -they really value their vacation,” said Adam Weissenberg, vice-chairman of U.S. Tourism, Hospitality and Leisure at Deloitte & Touche. “Once the economy levels out, people are going to start spending more and that includes on vacation.”
Findings from this issue of Travelnomics include:
-Lower airline prices thanks to the decreasing price of jet fuel, revival of cut routes and more competition in the skies.
-New runways and taxiways making air travel easier for 2009
-Gate auctions at top-traveled airports to help increase the competition among airlines
-More airline and hotel loyalty programs that offer even more savings to travelers
Travel analysts agree the number one factor affecting the cost of air travel in 2008 was the price of jet fuel. Over a 6-year period, the price of jet fuel was up more than 300 percent against the cost of domestic air travel. To average out the costs, airlines had to make some drastic changes. Routes and seats were cut, new fees were introduced, and some airlines filed for bankruptcy. But the times are changing. From the gate to 35,000-feet in the air, the airline industry has poised itself for a beneficial 2009.
“The market sets the airfares; consumers set the airfares. Airlines do not set the airfares,” said Seth Kaplan, managing partner of Airline Weekly.
Thanks to a host of new activity including government grants, airlines efficiencies and a new administration heading to Washington, DC, the travel industry is ready to fly high. The FAA has officially launched its new satellite system program, which will make its way through all airlines and airports by 2013. New improvements are being made at airports nationwide to relieve congestion the tarmac, which results in airplanes spending more time in the air and less time at the gate. And, in what some might consider the most important initiative taking flight in 2009, airlines are offering more perks to travelers and retreating to the ‘customer first’ mentality.
What used to be first-class privileges are making their way to coach-class passengers. Discount airlines including JetBlue and Virgin America have made significant strides to help build up consumer confidence. By the end of Q1, Virgin America will be the first airline to install Internet access across its entire fleet. In addition, more airlines are adding seat-back entertainment including On-Demand audio and video for travelers.
“People are willing to pay for premium products,” said Abby Lunardini, director of corporate communications for Virgin America. “Travelers want and deserve more for their money.”
Read the entire Cheapflights.com Travelnomics report online.
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© Cheapflights Ltd Melanie Nayer
