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Will flight and travel fees go down this fall compared to summer rates?

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2 months ago

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Will flight and travel fees go down this fall compared to summer rates?

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Americans wary of spending a fortune to travel can take comfort in a new report that shows airfare costs dropping after a pricy summer.

Flight prices in August were down 1.3% from the amounts a month earlier as well as in August 2023, according to the most recent data compiled by the financial publication NerdWallet. The difference is even more significant dating back before the pandemic, with today’s costs 6.5% lower than in August 2019.

The cost of hotel rooms and rental cars also dropped month over month between July and August, the report stated. However, both areas have experienced much more severe price increases — 13.8% and 24.8%, respectively — since pre-COVID days.

It all adds up to an overall travel cost increase of 1% from last August, according to NerdWallet. But with inflation impacting virtually every cost of living category today, the company said, the travel industry should feel fortunate to emerge relatively unscathed.

The NerdWallet report did not break down air travel costs by airport or state.

“In short, expect the same trip taken this year to cost slightly more than it did this time last year, but not more than the overall rate of inflation,” the report stated. “That means other prices are rising faster than the cost of things like airfare and hotel rooms.”

The latest report is in stark contrast to a CNBC article from the beginning of the summer which stated the consumer price index for airline tickets increased by 25%. That figure marked the largest jump since the Federal Reserve began tracking the index in 1989.

Experts attributed the increase to a variety of factors, including greater demand for seats on planes and a higher cost of jet fuel over the previous year. The airlines are also dealing with higher labor costs combined with fewer pilots and flight attendants to staff the planes.

Despite the recent drop, travelers can still find other ways to save money. CNBC suggested several tips to consider when booking your next vacation.

  • Plan ahead: Going, a service that finds the best flight deals for travelers, suggests booking in the “Goldilocks Window” — in other words, not too early and not too late — to find the best prices. The window is normally one to three months before the travel dates for domestic flights and two to eight months for international trips, though consider adding a month or two when flying during peak travel periods like Christmas or spring break.
  • Be flexible: Consider traveling to an alternate airport and driving or taking a train to your destination if it results in a better overall price. Budget airlines such as Spirit, Frontier and Allegiant offer no-frills flights, which could save travelers money if they fly with only a small amount of luggage.
  • Redeem points and miles: Frequent travelers who have accrued lots of miles or have a travel rewards credit card can use their perks to pay less out of pocket for their tickets and other associated costs.
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