Airfare rise causes changes in leisure travel

Leah Zanolla | Posted: Aug 4, 2008 | Updated: Oct 19, 2014 - 9:25:27 AM

With airline rates increasing by 15 to 200 percent, the travel industry is speculating that the cost of flights may stop all but the affluent from flying.

In response to the near double cost of jet fuel, many airlines have applied surcharges that can vary from a few dollars upwards to several hundred dollars. Some airlines have extended the advance purchase requirement and are mandating that travelers stay at their destination a minimum number of days. This is in addition to new fees for checked luggage, roomier seats and flight changes.

Recent reports show fares have risen more this summer than they have in any quarter of the past 25 years. Rick Seaney, CEO of FareCompare.com stated "Consumers are already shell shocked by higher prices, but their wallets are going to be hit harder than ever before on their next vacation or business trip."

With some routes doubling in price, many leisure travelers are either cutting back or flying during less popular times of year.
While there are still some bargains to be found, the traditionally lowfare carriers have raised their rates. Southwest is reporting a 8.4% increase while Jet Blue's fares went up by 13.1% as compared to the flight cost from the same time last year.

Many airlines have announced a drastic cutback in the number of flights they schedule starting this fall. This is in response to decreased demand due to the current cost of flying. With fewer flights, it is anticipated that rates will rise even further.

According to Seaney, one of the six major carriers, American, Delta, Continental, United, Northwest and US Airways, has raised their rates by a minimum of $10 twenty one times this year, with fifteen of the other airlines following suit. This is in comparison to 23 increases in all of 2007 with 17 airlines matching the new rates.

Travelocity editor Amy Ziff reported that airfare averaged $366 for travel from Memorial Day through Labor Day, 15% higher than the $318 average rate in 2007. FareCompare's studies report an increase of more than 20% for more than half the flights. According to the ATA, these are the highest increases since 1979 when average fares went up by 28%.

Business travel has also seen cutbacks in response to the increases in air fare.