What kind of price rises should you expect next year when it comes to airfares? The annual American Express Global Business Travel Forecast predicts prices will increase “conservatively” in North America and Europe, and a bit more robustly in Asia.
In a prepared statement, American Express says it “expects steadfast capacity restrictions [by carriers] will likely boost airline prices, even in the face of a potential economic slowdown.”
American Express expects North American short-haul economy fares, the kind used by business travelers, to rise between two and 5 percent next year, and long-haul economy fares by as much as 3.5 percent.
At what point will price rises turn people off to flying? “Fifteen percent to 17 percent of all small business travelers have already decided that they’re going to use GoToMeeting or some other form of communication…rather than travel,” says Kate Hanni, founder of Flyersrights.org.
She says though fare hikes “have made a difference,” flight delays, cancellations, and TSA security procedures also have “consequences for the travel industry. Every time another barrier to entry rears its ugly head business travelers try to find alternatives.”
She contends the same applies to leisure travelers – and that their frustration is compounded by the increased proliferation of ancillary bag, preferred seating and change fees.
Despite the projected rise in prices, comparative bargains still exist. Witness discount airlines Southwest and AirTran’s recent winter sales which saw some seats go for as little as $35 one-way, exclusive of taxes and fees. Other carriers were forced to match.
The upshot: if you can, adjust your schedule to fly when others don’t – such as the first two weeks of December, or mid-January through mid-February. Then, instead of thinking beaches and sunshine like everyone else, consider a trip to Europe during its oh-so-low season. Sure, carriers are cutting capacity, but there are still airplanes out there that push back from the gate with empty seats. Airlines hate that, and they still offer decent deals to fill them.
What’s your strategy to beat the rising cost of getting from A to B? Share some of your secrets.
Story by Jerry Chandler
(Image: Miss Turner)
