The holidays are approaching, and would-be travellers are feeling a sticker shock. With demand higher than anyone expected and supply still below expectations, air travel is becoming increasingly expensive. Here are some tips for finding cheap flights:
Price hikes due to demand
For the past two years, airfare has been increasing for many international trips. The rising fuel cost may be one reason for these price hikes. According to the U.S. Bureau of Labor Statistics, airfare jumped 18.6 per cent from March to April 2022, marking the largest one-month jump in airline history. Airfares have already risen more than 33% from last year. The average airfare is made up of millions of individual fares, and it is difficult to tell what the exact price of flights will be when you’re looking for them.
Airlines executives attended a recent JPMorgan investor conference, which discussed the surge in air travel demand. Delta and American have reported record days of passenger bookings in recent weeks. These airlines are expected to pass on these increases to consumers by raising prices. The airlines are concerned that the price hikes will limit consumer spending, hurting the demand for cheap airfare. However, many analysts believe this surge in demand is a good thing.
As more travellers come back to the U.S., prices are also increasing for hotel rooms and airline tickets. But the good news is that budget carriers are making a comeback. For example, Norwegian’s two founders have recently started PLAY airlines and plan to start flights to the U.S. next summer. But as long as competition remains strong, the price of cheap flights is likely to remain low.
The airlines have two options for dealing with these increased costs: They can take a hit on fuel prices or hike fares. While the short term may seem stable, the increases in fuel prices may be unsustainable for many airlines. According to the BAA, airfares in the domestic market will rise by about 6% a month until August. The increase in fuel costs will only be partially absorbed, however.
Budget airlines’ low rates as a baseline price
The secret behind budget airlines’ cheap rates is their base fares, which are considerably lower than legacy carriers. Budget airlines typically unbundle the perks that come with legacy fares and charge separately to achieve such low prices. These costs can drive some legacy carriers to introduce the basic economy, or “bare bones” economy, to compete. However, using low rates as a baseline price can lead to some interesting advantages for the customer.
Legacy airlines have a leg up when it comes to price negotiation. Budget airlines often have little leverage when trying to make a deal because they need to use hub airports to maintain cash flow. Using smaller airports, typically farther away from city centres, gives low-cost airlines more negotiating power. Budget airlines’ low rates are often called “baseline prices.”
In addition to low base fares, budget airlines often include extra fees at checkout. These fees are often not included in the initial price, and many of them advertise free flights. A search tool to check flights and the low rates can lead to significant savings. The best approach to saving money by flying low is to use the lowest base fares and then check the other two options in the same search.
Last-minute deals
Last-minute flight deals can be great if you’re willing to adjust your travel plans. Airlines usually plan their seasons well in advance, putting last-minute deals back on the market at discounted prices. These last-minute offers can be found as early as a few weeks before you want to travel. Just make sure to be flexible with your travel dates and your destination. Here’s how to find them. But before you book a last-minute flight, check these tips first.
First, check the price. Typically, domestic airlines will allow you to book your ticket online until two hours before departure. Check with each airline to see what the policy is. If you’re cutting it close, call the airline reservation line on the way to the airport. If you can’t wait that long, you should go to the airport ticket counter to book your ticket. Be aware that these agents will charge a small fee for booking tickets.
Second, try to book your travel early. You can find cheap last-minute plane tickets if you know when you want to travel and how much time you have. Then, you can use a travel comparison site to see which one gives the best deal. It would help to compare airfares on various airlines, including low-cost carriers. Be prepared to compromise on amenities, leg room, and other perks.
Third, check for availability. Last-minute flights usually cost less than other times of the day. Because airlines are scrambling to fill their planes, they can sell the last few seats on a flight for a lower price. But remember that this does not always guarantee a lower price. But last-minute flights are cheaper than other times of the day, and you won’t be able to purchase them in time for check-in if you buy a flight minutes before the departure time.
