Tag Archives: airfare

Questioning The Advance Purchase Airfare Axiom

Is it still a bad idea to wait until the last few days before a flight to buy a ticket? Yes. However, extra capacity and low-fare competition is causing some counterintuitive pricing. Walk-up fares, for example, are not always the most expensive. For the most part, travel management pros continue to advocate advance purchasing. It’s a common component of… Read More »

Signs Point To Rising U.S. Airfares

Executives at American Airlines, Southwest Airlines and Delta Air Lines are optimistic. For corporate buyers, many of whom are now in the throes of budgeting for next year, that may mean higher airfares into 2018. Determining which way airfares will move is never easy. On top of the upward and downward pressures that observers routinely watch — supply,… Read More »

Offsetting Trends To Keep 2017 Airfares About Flat In North America

[UPDATE, June 28, 2017: BCD Travel’s Advito slightly raised several of its 2017 airfare projections, owing to strong global demand and improving economic conditions. It also increased to $52 per barrel from $50 its assumption for the price of oil, due to geopolitical tension. “Efforts by airlines to push up prices have so far had only limited success,”… Read More »

Fare Combinability Issue Cools

After a chaotic six weeks, the brouhaha around fare combinability has simmered down. American, Delta and United have settled on a middle ground, but differed in how they got there. The bottom line seems to be that fare combinability again is permissible for circle trips and when stringing together multiple one-way fares, except for the very lowest fares.… Read More »

Fare Fracas Lingers

The fare combinability fracas isn’t over. American, Delta and United at the end of last week said their recent changes on one-way ticketing went further than intended. They are making revisions to bring back some normalcy. But live travel agents still seem to be the only ones capable of booking circle trips and some other itineraries on a… Read More »

Airline Rule Change Abruptly Hikes Circle Trip Costs

[UPDATE, April 1, 6:29 p.m. EDT: Delta now says that while “end-on-end combinability of non-refundable fares has been restricted,” booking within one passenger name record “multiple one-way tickets for the purpose of constructing legitimate circle trips” is again possible. “You can book any one-way ticket we offer for sale, but we do not recommend using multiple one-way tickets… Read More »

London, China Among International Fare Soft Spots

Businesses are paying less for some international airline tickets than they have in years, according to corporate travel benchmarks. It’s not because airlines have cut published pricing. Instead, they have kept selling more low-bucket inventory closer to departure. That brings down passenger yield, a proxy for fare paid. Some U.S. routes to London and China are showing sharply reduced average fares paid.… Read More »

Airfares Are Down In Most U.S. Markets, But Some Pay More Or Get Less

Airfares around the United States generally are falling compared with last year, but exceptions include some pretty big markets. Even where prices aren’t rising, years of capacity reductions in some places mean much less choice, fewer nonstop destinations and lower overall value. This forces travel buyers to rethink their air contracting strategies. Where the loss of air service is extreme, there’s also an… Read More »

Competition Pushing Airfares Down

At the beginning of the year, this publication laid out reasons why airfares may not follow dropping fuel costs. Nine months on, it’s clear they have, but it’s not all because of oil prices. Demand growth this year isn’t as robust as expected, dragged down by sharply reduced volumes from the energy sector. There’s been some pick-up in overall capacity led by increases at Alaska, JetBlue, Southwest… Read More »

Big Airlines Rein In Capacity Amid Fare Softness

Air travel demand is fairly strong and airplanes are pretty full. Airlines are raking in profits. Fares are flat or down. Where will they go from here? Predicting airfares is risky, with wild cards in the form of fuel prices, competition and the economy. Fundamentally, fares are a function of supply and demand. An imbalance there created some… Read More »