Monday, March 23, 2009

Airlines Keeping Prices Cheap

According to recent reports from ARC (Airlines Recording Company) airline ticket prices are the cheapest they've been in years. So why?

Last summer the airlines were reeling from the prices of oil with prices getting as high at $147 per barrel. Ever since this scare, the airlines have begun cutting flights, adding fees for just about everything, and cutting back on anything they could, all just to save a few bucks. While most airlines in 2008 lost money, the oil scare of 2008 helped the airlines reduce expenses and capacity just in time to watch the economy implode. As the economy suffered, the airlines were actually turning a profit due to the capacity cuts and fees implemented last year.

Since the airlines were luckily set back with oil, they ultimately dodged the bigger bullet, the economy. While most businesses are struggling to get by, the airlines are doing better then ever. Demand is up since capacity has been cut! With all this going on, the airlines are helping travelers by lowering fares. This year I've seen incredible deals all over. Deals that you normally would not find.

Most major airlines have introduced sale fares and discounts just the encourage travelers to travel. To top that, most hotels and destinations are also feeling the effects of the economy and have been aggressively trying to get capacity up. A good example is Las Vegas, where mostly all hotels have seen dramatic decreases in volume. Right now, they can't even give the rooms away because there are not enough visitors.

With everything that is going on, the airlines, hotels, car rental companies, destinations, and just about everyone else associated in the travel industry, travelers should have no trouble finding great deals to just about anywhere. Take advantage of the times and travel!

1 comment:

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