Cheap fares, particularly cheap vacation packages, and discount hotel rooms, are expected to remain plentiful in 2010. However, if as forecasted, more people start traveling this year, prices, particularly for airline tickets, are expected to inch upwards. The good news is that airline ticket prices are not expected to end up as costly as they were prior to the recession.
Future travel price expectations vary by industry:
Car rental rates reached their highest levels ever in 09. Car rental companies have the ability to reduce their fleets in the face of falling demand, which was off almost 25 percent last year. Although current rental rates are lower than they were last year, car rental prices are forecasted to rise 5 to 8 percent this year. Customers would be best served by making car reservations early vs. paying more later or even possibly finding out than no cars are available for last minute reservations.
Average daily hotel rates are projected to fall 3 percent in 10, on top of an 8 percent decline in 09. Rates tend to increase as the end of the year is approached. The trend in prices does vary by location, with some cities offering substantially better deals than others. Great deals can be found in Phoenix and Houston, whereas New York Citys hotel rates are on the rise. Countries facing economic problems, including Greece, Italy, Portugal and Spain are experiencing declines in hotel rates.
Fare comparisons of one way prices on 280 major routes over a two week period in March showed a year over year increase in airline ticket prices of 17 percent. Airline ticket prices are forecasted to be at least 10 percent higher than in 09.
The best way to minimize the impact of rising airfares is to purchase vacation packages, which typically include purchase of both airline tickets and hotels, because once the price of the individual service is masked (i.e., bundled), airlines and hotel often are willing to sell their services for lower prices than when they price them separately.
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