October 30, 2008
Will travel be more expensive in 2009?
This article talks about American Express predicting lower prices for hotels and airfare in Australia for the rest of this year but higher prices next year.
I don't know how they came up with this forecast but I am pretty curious. What do they think will change between now and next year when prices might increase?
If prices really do go up in Australia I would expect them to go up elsewhere as well. Has anyone seen any predictions for travel costs for international flights or US domestic flights, or hotels anywhere in the world other than Australia?
Posted by James Trotta at October 30, 2008 11:17 PM
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Given the recent financial "melt-down" and the decreased price of fuel, I don't see how costs could go up for 2009. If the agencies want to fill the ships, trains, planes, hotels, etc., they are going to have to lower prices significantly. The fixed cost of equipment will not change and it goes on whether it is operating or idle. They can't afford to operate half full.
Posted by: Old Nav30 at October 31, 2008 5:59 AMAccording to NY times, the travel industry will be hit hard by the economic slowdown.
Airlines reported sharp declines in passenger traffic for September. Hotel occupancy rates are down, and corporate travel managers are demanding new concessions on previously negotiated deals. Cancellations are starting to rise even at four- and five-star hotels, which previously seemed immune to the economy’s travails.
Deteriorating business conditions mean fewer business travelers, so airlines compete more fiercely for those who are still flying. They will have to offer lower price to survive in the shaken economic situation.
Therefore, prices for hotels and airfair will go down for the rest of this year and 2009 as well.