People who still want to see family or take a vacation during the holidays must act quickly and be prepared for sticker shock.
Based on bookings, airline officials anticipate a high demand for flights over Thanksgiving, Christmas, and New Year’s. According to travel professionals, the best airfare and hotel prices have already passed.
On social media, many passengers believe they are being overcharged. When official data shows that airfares in October were up 43% year-over-year and U.S. airlines recorded a combined profit of more than $2.4 billion in the third quarter, the mood is understandable.
Even though passenger counts are nearly back to pre-pandemic levels, airlines continue to operate fewer flights in 2020 than they did in 2019.
“Less flights and more people wishing to go home for the holidays or take a vacation implies that prices will increase and flights will sell out for both holidays,” said Holly Berg, chief economist for travel-data service Hopper.
Yulia Parr understands precisely what Berg is referring to. The woman from Annandale, Virginia struggled to locate an affordable trip for her little son, who is spending Thanksgiving with his grandma in Texas while she joins her husband, who is on active duty in California. She discovered a Southwest one-way ticket for $250, but it’s not available until the Tuesday following the holiday.
Parr believes she booked her flight too late.
She stated, “My husband’s children are travelling home for Christmas.” These tickets were purchased in advance, so they are not too awful.
shorter journeys to save money
It is customary for airfare and lodging rates to increase as the holiday season approaches, and this year was no exception. According to Axel Hefer, CEO of Germany-based hotel-search website Trivago, this is prompting some European travelers to arrange shorter visits.
“Hotel prices have increased everywhere,” he stated. “If you have the same budget or even a smaller budget due to inflation and you still wish to travel, you just eliminate one day of your trip.”
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Hotels are experiencing labor shortages, another factor contributing to pricing increases. One hotelier told Glenn Fogel, CEO of Booking Holdings, which operates travel-search sites including Priceline and Kayak, that he cannot fill all of his rooms due to a lack of employees.
Consumers in the United States are experiencing the greatest inflation rate in four decades, and there is rising anxiety about a possible recession. This is not reflected in travel statistics, though.
Holiday travel may surpass levels before the outbreak.
According to October data from the Transportation Security Administration, the number of passengers passing through airport checkpoints has rebounded to about 95% of 2019 traffic. Officials in the tourism sector predict that holiday travel may surpass pre-pandemic levels.
Even though they have been hiring staff to replace those who left after the COVID-19 outbreak, airlines have not always done a good job managing the large crowds. This summer, the number of canceled and delayed flights exceeded pre-pandemic levels, prompting airlines to delay plans to add more flights.
Cirium, a provider of travel statistics, reports that in December 2019, U.S. airlines expect to run roughly the same number of domestic flights that they did in December 2018. This year, airlines are utilizing larger aircraft with more seats, which somewhat compensates the decline in flight frequency.
Andrew Nocella, chief commercial officer of United Airlines, stated on the company’s October earnings call, “We are clearly seeing a lot of Christmas strength.” “As we approach the Thanksgiving period, our bookings are really robust.”
In the summer, airline CEOs and Transportation Secretary Pete Buttigieg placed blame on each other for severe flight disruptions. After adding additional pilots and other employees, according to airline CEOs, they are prepared for the holiday crush.
The advice provided by travel experts for saving money and avoiding being delayed by a canceled trip has not altered significantly from prior years.
When traveling to grandma’s place, be flexible with dates and even destinations. A recent search revealed that the cheapest flights from Los Angeles to New York during the holiday season were on Christmas Eve and New Year’s Eve.
Consider discount carriers and other airports, but be aware that smaller airlines have fewer choices for rebooking canceled customers.
Fly early in the day to reduce the possibility of a flight delay or cancellation. Chuck Thackston, general manager of Airlines Reporting Corp., an intermediate between airlines and travel agencies, stated, “If something goes wrong, it tends to escalate throughout the day – it becomes a domino effect.”
There are numerous theories on the optimal day to arrange travel. Sunday, according to Thackston, is the most popular day for price-conscious people to purchase, and airlines adjust their offerings accordingly.
While airlines have, for the most part, avoided the accusations of price-gouging that have surrounded oil companies, the President announced in September a new initiative that would eventually allow consumers to see a more comprehensive price on airline tickets, including baggage and change fees, prior to purchase.
Accountable US, a nonprofit that criticizes corporations, has linked this summer’s airline delays and cancellations to job losses during the pandemic and bad worker care. The group’s spokesman, Jeremy Funk, stated that the aviation business is not now on par with the food, energy, and retail industries in terms of extreme profiteering.
Meanwhile, tourists are making sacrifices to reduce their travel expenses.
Last week, Sheena Hale and her daughter Krysta Pyle awoke at 3 a.m. and left their house in northwest Indiana an hour later to catch a 6:25 a.m. flight from Chicago.
Hale stated, “We are exhausted” as the jet landed in Dallas, where Krysta was competing in a cheerleading competition. “We departed early because early flights were significantly less expensive. Flights are prohibitively expensive.”
They will not travel for Christmas.
“We are not required to travel. We are staying with family at home “Hale remarked.