Holiday Travel: Is It Always Expensive?

is holiday travel always more expensive

Holiday travel is often more expensive than travelling at other times of the year. Demand is high, and airlines take advantage of this by charging more for flights. However, there are ways to find deals and save money on holiday travel. Booking in advance can help, as prices tend to increase the closer it gets to the holidays. Being flexible with travel dates can also keep costs down, as flying on certain days, such as the Monday before Thanksgiving or Christmas Eve, is typically cheaper than flying on the days immediately before and after the holiday. Additionally, considering less popular destinations and using travel agents can also help travellers save money.

Characteristics Values
Holiday airfare compared to pre-pandemic Most expensive in 5 years
Holiday airfare compared to 2023 Up by 10% for Thanksgiving, 4% for Christmas
Holiday airfare compared to 2022 Up by 40% for Thanksgiving, 26% for Christmas
Holiday airfare compared to 2019 Up by 22% for Thanksgiving, 33% for Christmas
Average airfare during the second quarter of 2022 $397
Average airfare during the second quarter of 2020 $295
Average airfare during the second quarter of 2019 $406
Average domestic airfare for trips over Thanksgiving $350
Average international airfare for trips over Thanksgiving $795
Average domestic airfare for trips over Christmas $463
Average international airfare for trips over Christmas $1,300

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Demand for holiday travel is high

Demand for holiday travel is "very strong", according to Delta CEO Ed Bastian. He states that advance holiday season bookings are significantly up from last year, and "demand for air travel remains very strong". This is echoed by chief commercial officer Andrew Nocella at United Airlines, who also sees "incredibly strong" bookings.

The high demand for holiday travel is causing airfares to soar. Nonstop flights from Chicago to New York for Thanksgiving are priced at over $500 round trip, and flights from Los Angeles to Seattle on the same dates are well above $500 round trip. Average domestic airfare for trips over Thanksgiving is $350, and international round trips are $795 on average—a 22% increase compared to 2019, before the Covid pandemic.

The high demand for holiday travel is partly due to people being "pandemic-weary" and "getting out and seeing the world" after years of restrictions. People seem to be prioritizing spending on experiences such as travel, and are willing to pay higher prices for flights.

The demand for holiday travel is also causing a strain on resources, with airlines having fewer flights available than in previous years. Hayley Berg, lead economist for the travel search and booking app Hopper, states that there will be "fewer flights available and more travelers", which will result in higher prices and a lack of availability.

To get the best deals on holiday travel, it is recommended to be flexible with travel dates and to book in advance. Traveling outside of the busiest days, such as the Wednesday before Thanksgiving, can result in lower prices. Booking holiday flights at least 21 days in advance is advised, as many airlines require a 21-day advance purchase for the lowest fares.

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People are spending more on experiences post-pandemic

Holiday air travel is expected to be more expensive than ever before, with pandemic-weary travellers willing to pay higher prices for flights. However, it is important to note that people's spending habits have changed post-pandemic, with a greater focus on experiences.

Post-Pandemic Spending on Experiences

The pandemic has altered our society in numerous ways, and one notable shift is the change in consumer spending habits. People are now prioritising experiences and events over material goods. This trend, known as the "Experience Economy", is not new but has been accelerated by the pandemic.

Research has shown that millennials, in particular, are choosing to spend their money on experiences or events rather than physical possessions. This shift in consumer behaviour has significant implications for businesses, as customers now value memorable encounters and personalised experiences that make them feel like active participants rather than just a number.

The impact of the pandemic has made people value experiences more than ever, and this is reflected in their spending habits. People are willing to pay for experiences that bring them happiness and create lasting memories. This trend is expected to continue in the post-pandemic world, with unique and immersive experiences driving customer loyalty.

The Impact of the Pandemic on Social Habits

The pandemic has also had a lasting impact on people's social habits. Many individuals are socializing less and spending more time online and at home. This has resulted in reduced foot traffic for restaurants, bars, and retailers, contributing to the decline of city centres. People are also drinking at home more often, which has further impacted the hospitality industry.

The pandemic has caused a sense of loneliness and isolation for many, and even as restrictions have eased, some continue to feel anxious about socialising and prefer to keep their worlds small. This has made it challenging for people to expand their social circles and connect with others, particularly those with differing perspectives.

The Future of Travel

Despite the increased cost of air travel, people seem willing to pay for the experience of travelling, especially after the pandemic delayed many people's plans. This suggests that the demand for travel will remain strong, and prices are expected to continue rising.

Overall, while holiday travel may be more expensive, it is part of a larger trend of people prioritising experiences and being willing to spend more on them in the post-pandemic world.

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Airfares are rising due to operational issues and staffing shortages

Holiday airfares are typically more expensive than usual, and this can be attributed to various factors, including operational issues and staffing shortages.

Firstly, the COVID-19 pandemic caused a wave of retirements and forced the Federal Aviation Administration (FAA) to close its training academy, resulting in a significant staffing crisis. The FAA has struggled to meet the demand for air travel as it has around 1000 fewer air traffic controllers in 2023 compared to 2012. This has led to an increase in flight delays and cancellations, causing frustration among travellers.

Secondly, airlines have also faced challenges in retaining and recruiting staff, with about 40% of new hires dropping out during the training process. The training process is lengthy, taking one to three years to get new employees trained and certified, which has further exacerbated the staffing shortages.

Moreover, issues such as overtime use, absenteeism, lower productivity, and increased fatigue among existing staff have also contributed to the problem. Overtime use within the FAA is at an all-time high, leading to more absenteeism and fatigue among employees. This, in turn, affects their productivity and increases the risk of errors.

Additionally, airlines have improved their control over seat sales, making it harder to find cheap fares during the holiday season. They have reduced the number of flights, especially on days with lower demand, such as Christmas Day.

The combination of high demand, limited capacity, and operational issues has resulted in soaring airfares during the holiday season. Travellers are advised to be flexible with their travel dates and consider travelling on less busy days to find more reasonable fares.

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Air travel prices are highest during peak-demand days

Air travel prices are indeed highest during peak-demand days, such as the Wednesday before Thanksgiving or the days leading up to Christmas. This is due to a combination of strong demand and limited capacity. As a result, travellers are advised to be flexible with their travel dates and consider travelling outside of these busy periods to find more affordable airfares.

For example, data from Google Flights suggests that the average price of airline tickets for domestic Thanksgiving trips is lowest 45 days before departure, with a low-price booking range of 26 to 59 days in advance. Similarly, for Christmas travel, prices are historically lowest 58 days before departure, with a low-price booking range of 36 to 72 days in advance.

It is also worth noting that airfares tend to be higher during the holiday season in general, not just on peak-demand days. This is influenced by factors such as increased fuel costs, staffing challenges, and high demand as people seek to travel after the pandemic. As such, booking as early as possible is recommended to secure the best prices.

Additionally, there are other strategies travellers can employ to save money on air travel during the holidays. These include considering alternative airports, being flexible with travel dates, and using points or miles for last-minute bookings. By being strategic and proactive, travellers can increase their chances of finding more affordable airfares, even during peak-demand periods.

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Some airports have seen larger increases in airfare than others

Holiday airfare is expected to be pricier this year, with some airports experiencing larger increases than others. According to data from the Bureau of Transportation Statistics, the average airfare in the second quarter of 2022 rose to $397, up from $338 at the start of the year. While this is higher than the average of $295 during the pandemic-restricted second quarter of 2020, it is lower than the pre-pandemic average of $406 in late 2019.

Airports in the Western US, including those in California, Washington, Arizona, and Idaho, have witnessed the most significant year-over-year price hikes. Pensacola International, Fresno Yosemite International, Seattle/Tacoma International, and Los Angeles International are among the airports with the largest increases in airfare between the second quarters of 2021 and 2022.

The rising costs of air travel can be attributed to various factors, such as expensive fuel, staffing challenges, and high demand. While experts predict a cooldown in airline prices, some airports continue to experience substantial increases.

To save money, it is recommended to consider travelling on less popular days, such as the Monday before Thanksgiving or returning a few days later. Additionally, exploring alternative airports that are a little farther away could also result in significant savings.

Frequently asked questions

It depends. While holiday flights are often more expensive due to high demand, there are ways to find deals and save money. Booking in advance, being flexible with travel dates, using travel agents, and considering alternative airports can help reduce costs.

It is recommended to book holiday travel as early as possible, ideally at least 21 days in advance. According to Google Flights, the average price of airline tickets for domestic Thanksgiving trips is usually the lowest 45 days before departure. For Christmas travel, prices are typically lowest 58 days before departure.

Yes, travel agents offer expertise, convenience, and access to exclusive deals and discounts. They can save you time and provide personalised recommendations based on your preferences. In some cases, they may charge service fees, but there are also agents who work on a commission-only basis.

Yes, consider booking flights on less busy travel days, such as the Monday before Thanksgiving or Christmas Eve/Christmas Day. Additionally, look into alternative airports that may offer lower-cost options. You can also try booking one-way flights on different airlines instead of a round-trip to find cheaper options.

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