Sunday, November 21, 2010
flying for the holidays won't be cheap
If you are thinking about waitng for the last minute to book tickets for airlines, that is not such a good idea this christmas. Some experts are calculating the airline travel to be a 17 % increase this year as opposed to last year. The last couple of years, many people could buy cheap tickets at the last minute due to the demand of air travel being down. This may be an indicator of how the economy is on the rise. People obviously have more money, and are more willing to spend it. Air travel usually is not a need, so any time a luxury item increases, it can be good for the holiday. People are starting to spend more money, and that is a good sign.
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Is this necessarily a sign that people are spending more money? Also, I would argue that air travel is more often than not a need because of time restraints or distance that must be traveled.
ReplyDeleteWhile this article could be an indication of consumers increasing their spending, the more justifiable reason for increased air travel is likely a result of the holiday seasons. I would be surprised to see consumer spending remain at these levels after the holidays.
ReplyDeleteI agree that this is a sign of increased consumption. I know many people do not fly and instead suffer long drives when money is short. Going home for the holidays is a necessity in American culture.
ReplyDeleteI agree with Tyler's comment. Ticket prices are more likely to be increasing due to the holiday season. Everyone wants to go home or for a vacation during the holidays and because most people get a break during this time, airlines are aware that demand will be higher.
ReplyDeleteJust a note: Airline tickets during thanksgiving break actually dipped closer to the date. If this might happen during the winter break, is this a sign of low consumer confidence? Are people avoiding travels or are they using other methods?
This is classic supply and demand example. With the airline industry decimated by the economic rescission many airlines cut back on supply of fights in general laying off thousands and taking many airplanes out of the sky. Airlines cut supply below demand to insure that every flight would be filled and that they would be able to sure up there finical statements. With airline's reporting some of the largest profits in years, some say its time for airline industry to expand to meet this new demand. If prices remain high it will only be a matter of time till new airlines are launched to insure that prices remain at fair level for consumers.
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