Travel Fares Will Rise As More People Book Flights and Hotels
It is as simple as supply and demand.
Among more and more people being vaccinated, combined with the growing demand for travel, the number of travelers is increasing.
As a result, the same goes for ticket prices and hotels.
Slowly, but surely, the cost of travel is increasing, to the point where CNBC noted that travelers should not expect these $ 30 much more airfare.
For the most part, the rate of positive COVID-19 tests is declining, and President Joe Biden has achieved his goal of 100 vaccinations in 100 days with 42 days left, creating a sense of confidence that trips can be repeated more strongly.
CNBC reported that travel search site Kayak said that searches for summer travel had increased by 27 percent over several weeks and that airfare to the top 100 most searched destinations in the US had increased by 7 percent month-on-month.
“Airline tickets are on the rise. “While there are still discounts, they are no longer in the consumer circle,” said Jamie Baker, an analyst at JP Morgan. “Reduced fares require more and more hunting, and for many consumers who have been locked in for a year, it is probably not up to the effort.”
Travel consultants predicted that unexploited demand would lead to higher prices. The cheapest domestic leisure airline tickets, which include the promotional fares that airlines send to your inbox, were $ 59.48 as of March 15, still 26% lower than a similar week in 2019. However, this should be deleted. fast enough as fares have risen six percent in the past week. If it continues at this rate, offer fares will return to 2019 levels.
Airline executives said Monday that bookings were rising in March and extending into the summer, but that US airlines were well on their way to losing an average of $ 150 million a day this quarter, according to Airlines for America. But again, if the increase continues, both United Airlines and Delta Air Lines have said the increases will eventually increase their cash in the spring.
“As long as there is no setback we are on the road to recovery and we can put those days in the mirror talking about cash burnout, layoffs and things like that,” CEO Scott Kirby told CNBC’s Squawk Box on Tuesday.
Hotel occupancy in the U.S. this month through March 13 averaged more than 51 percent, the highest in more than a year, according to hotel data analysis firm STR. In hot vacation spots like Miami, occupancy is almost 70 percent with average prices of $ 228 a night, the highest prices since February 2020.