Thanksgiving is coming up and with it, the busiest travel season of the year. With more people flying than ever before, airlines are facing increased demand for seats, leading to sky-high airfare prices. If you’re thinking about flying this Thanksgiving, there’s good news: air travel may not be as expensive as you think.
According to Bloomberg (via CNBC), thanksgiving air travel is already near the 2019 level, which means that airfare prices are likely to rise gradually over the next few months. Nevertheless, if you’re looking to save money on your holiday travels, there are a few things you can do. Check out our list of tips below to help get started.
Thanksgiving airline travel may rise to near 2019 level
Thanksgiving airline travel may rise to near 2019 level thanks to a recovering economy and increasing demand. Airlines have seen an increase in passenger traffic as the economy has slowly started to improve. This will continue into the holiday season, which is typically one of the busiest times for airline travel.
The Guardian reports that 2017 was the third-busiest year on record for air travel, with passenger traffic up 7% from 2016. Delta Air Lines says it expects 2018 to be another strong year for travel, with forecasts of 5%-7% growth in passengers.
Delta anticipates this growth in demand to lead to higher prices for tickets during the holidays but notes that there is still room for price increases since not all flights are full at this time of year.
American Airlines predicts that Thanksgiving and Black Friday will be some of its busiest days ever when it comes to booking flights. Amtrak anticipates that thanksgiving week will be its busiest week ever when it comes to ridership.
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Why are airline prices rising?
As the holiday season approaches, more and more Americans are anticipating air travel to get them home for Thanksgiving. Unfortunately, this year’s prices may be higher than you’re used to. Airlines have already started increasing airfare rates, and it seems like they’ll only continue to go up from here.
One reason for the increased prices is that airlines are now required to pay a new round of taxes: $6 billion in airline taxes went into effect on January 1st.
This money is supposed to help improve airports and support other transportation infrastructure projects, but airlines argue that it will also increase their costs. In any case, the cost of flying will likely continue to rise as long as these new taxes remain in effect.
Another contributing factor to the rising prices of air travel is the global economy. The recession has caused a number of people (especially in Europe) to abandon their vacation plans, which has led airlines to reduce capacity in order to maintain their profit margins.
Consequently, fares must be raised even more in order to cover the increased costs associated with lost revenue.
So if you’re thinking about booking your Thanksgiving flights this year, be prepared for sticker shock! If you can’t avoid air travel altogether, at least try to avoid expensive last-minute tickets by planning ahead and booking your tickets well in advance.
How soon will we reach the 2019 level?
According to the latest report from the NPD Group, air travel is anticipated to reach its all-time high for the year 2019. This forecast was based on data collected between October and December 2018. The key factors that are contributing to this trend include economic growth, passenger traffic trends, and airline capacity utilization.
The most recent forecast predicts that total air travel will increase by 2.6%. This increase reflects a rise of 1.1% in domestic air travel and a 2.5% gain in international air travel.
Combined, these increases result in predicted passenger volumes reaching 307 million passengers in 2019. Additionally, the average fare is expected to reach $998 per traveler, which would be an 8% increase from 2018 levels.
With such robust growth predictions, it’s no wonder airlines are preparing for future demand by expanding their fleets and scheduling more flights. Airlines have also increased prices for tickets as well as added new fees or charges such as baggage fees or reservation changes.
As long as economic conditions remain strong and traveler preferences stay stable, there is little indication that air travel will slow down anytime soon.
What can we do to prepare for the increase in air travel costs?
There is no doubt that air travel is becoming increasingly expensive. Domestic airfare prices have already increased by an average of 10% this year, and the cost of international flights has followed suit. In addition, many airlines are increasing their ticket prices for the holiday season.
Given these increases, it’s important to be prepared for the added costs associated with air travel. Here are a few tips to help you save money on your holiday travel:
- Do your research. Compare different airline options and find the best deal for what you need. Use websites like Cheap Flights or The Points Guy to find the best deals on flights.
- Book your flights as early as possible. Airlines tend to increase their ticket prices significantly in the last few days before a flight, so booking early can save you a lot of money. It’s also important to note that some airlines offer “last minute deals” which may be even cheaper than regular tickets!
- Make use of online travel tools. Many airlines now offer online reservations, allowing you to make your trip without ever having to talk to a live person! This is great if you’re not comfortable making large financial decisions over the phone or if you have trouble traveling during peak times (like Christmas Eve or New Year’s Eve).
- Bring along your own bag check allowance. Most airlines now allow passengers to check one additional piece of luggage free of charge – this can be a great way to bring along extra
Conclusion
Thanksgiving may be around the corner, but air travel could very well rise to near 2019 levels as a result of global trade wars. According to The Wall Street Journal, “Ongoing tariffs on China and other countries are driving up prices for raw materials, such as aluminum and steel, that airlines need to build new planes. Tariffs on those products also have increased costs for aircraft engines and other parts.” If you’re planning on traveling this holiday season or anytime soon, it’s important to keep these escalating airfare costs in mind.
