Saturday, September 4, 2010
After Bargains of Recession, Air Fares Soar
During recent months, all air fares have increased a lot, even the economy has improved and demand has picked up. For leisure travelers, domestic fares increased by more than 20 percent; international fares increased by 30 percent. For business travelers, prices increased by 12 percent. Airlines use many ways to increase ticket prices: reduce the number of seats they offer; find a variety of new services worthy of a fee; charge for items they once provided for free, etc.. Experts expect prices will continue to increase in coming months because of year-end holidays. The past low point of industry put big pressure on the airlines: consumers cut back on air travel spending and airlines struggled with high energy prices at the same time. But now, airlines is turning small recovery into big profits, and those methods do improve fortune to airlines.
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That is so true. Every single time I look for air fair prices it looks like they keep increasing. Even for short flight distances you have to pay a couple of hundred dollars.
ReplyDeleteThe airline industry is just adapting to the same model other companies have been using. Cut as much as you possibly can to keep costs down, while at the same time using your resources as efficiently as possible. Especially in an industry like air travel which is always in demand.
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