Buy Early and Place Your Bets!

[SelectSys]

I saw this article the near to mid term future of air travel and thought about it in the context of all the threads regarding the escalating prices and extra charges being applied ("You think Flying is Bad Now"):

 

http://www.businessweek.com/bwdaily/dnflash/content/may2008/db20080527_408257.htm?campaign_id=rss_daily

 

The bottom line is that we have yet to see the full impact of $130.00 oil and excess capacity in the US industry. I for one had a great time experiencing extremely low cost travel (loss leader?), free upgrades, easy access to FF passes, etc. Unfortunately these days are likely now over and we'll need to get used to a new travel environment - especially in the US.

 

My recommendations:

1) Get your tickets early before prices go even higher. I am not expecting too many last minute deals as US airlines chop domestic capacity

2) Get ready for even more charges as airlines attempt to raise revenues

3) Look at the financial health of your carriers when buying tickets as the next round of bankruptcies will likely result in hard shut downs.

 

We had a thread a while back discussing the "end of low cost airlines". While the fares aren't going any lower, the strategies of these airlines in terms of charging for all extras is certainly becoming the norm.

 

We should be in for a fun decade! I hope I will be able to keep up with the prices ...

[johnjen]

My recommendations:

1) Get your tickets early before prices go even higher. I am not expecting too many last minute deals as US airlines chop domestic capacity

2) Get ready for even more charges as airlines attempt to raise revenues

3) Look at the financial health of your carriers when buying tickets as the next round of bankruptcies will likely result in hard shut downs.

 

Your advice is well-heeded! We booked cruise air for our cruise next June (2009) and locked in to our tickets to/from Rome at $1523 pp. I've been checking the latest air fares and they've went up - now as low as $1671 and upwards to $2984 pp.

 

I think we're perfectly fine with "cruise air" for now - but will definitely consider other options.

 

But a question - what if, miraculously, air fares tumble next year - do we get compensated for air fare prices, or are we locked in, no matter what?

[cruisintwinsmom]

Your advice is well-heeded! We booked cruise air for our cruise next June (2009) and locked in to our tickets to/from Rome at $1523 pp. I've been checking the latest air fares and they've went up - now as low as $1671 and upwards to $2984 pp.

 

I think we're perfectly fine with "cruise air" for now - but will definitely consider other options.

 

But a question - what if, miraculously, air fares tumble next year - do we get compensated for air fare prices, or are we locked in, no matter what?

 

 

If you mean by "cruise air" that you are letting the cruise company book your air, then you have 60 or 70 days before final payment to cancel the air. At least that is my experience on Celebrity and RCCL.

[PennyAgain]

Prices for air tickets are not going to tumble. We travel a great deal in our company. We have expanded our budget for 2009 and may have to do so again.

 

It is going to be a bumpy ride!

[Globaliser]

3) Look at the financial health of your carriers when buying tickets as the next round of bankruptcies will likely result in hard shut downs.

"Place Your Bets!" is absolutely right about this aspect!

 

It'll be an interesting time watching to see which airlines go under in the next 12-18 months, if the price of oil does not retreat quickly. I personally hope it's all the airlines that should have gone bust permanently in the last round.

[kenish]

If airfares on an airline "tumble" it's a big red flag. It means they are sacrificing the long-term and trying to generate short-term cashflow just to survive.

[chipmaster]

I saw this article the near to mid term future of air travel and thought about it in the context of all the threads regarding the escalating prices and extra charges being applied ("You think Flying is Bad Now"):

 

http://www.businessweek.com/bwdaily/dnflash/content/may2008/db20080527_408257.htm?campaign_id=rss_daily

 

The bottom line is that we have yet to see the full impact of $130.00 oil and excess capacity in the US industry. I for one had a great time experiencing extremely low cost travel (loss leader?), free upgrades, easy access to FF passes, etc. Unfortunately these days are likely now over and we'll need to get used to a new travel environment - especially in the US.

 

My recommendations:

1) Get your tickets early before prices go even higher. I am not expecting too many last minute deals as US airlines chop domestic capacity

2) Get ready for even more charges as airlines attempt to raise revenues

3) Look at the financial health of your carriers when buying tickets as the next round of bankruptcies will likely result in hard shut downs.

 

We had a thread a while back discussing the "end of low cost airlines". While the fares aren't going any lower, the strategies of these airlines in terms of charging for all extras is certainly becoming the norm.

 

We should be in for a fun decade! I hope I will be able to keep up with the prices ...

 

 

Exciting times :eek:

 

Booking early will help if you happen to pick a carrier and flight still in business :D

 

As the report and others noted no airline can support the current fare and route structure they are operating. Even if you book now for a flight 9 months out, you could pick a carrier that goes under like Aloha, or you could pick Southwest and be on a flight/route they elminate. I'm sure in the latter case they will get you on an alternate but will it be 5 legs and a day late who knows.

 

The days of cheap travel are over :eek:

 

Its ironic that it was all driven by the walmart effect :confused: