Thanksgiving Travel: Why Higher Reward Costs?

why is american reward travel more expensive during thanksgiving

Thanksgiving is one of the busiest and most expensive times to travel in the US. This year, the average price for a domestic flight is $681, up 5% from 2022. The increase in prices can be attributed to several factors, including high demand, limited supply, and increased operating costs for airlines. Demand for air travel during Thanksgiving has been steadily increasing over the years, and this year, nearly half of Americans plan to travel during the holiday season. Airlines are struggling to keep up with the demand as they deal with staff and aircraft shortages. Additionally, the cost of fuel and other operating expenses has increased significantly since 2019, causing airlines to raise ticket prices.

Characteristics Values
Average price of a domestic flight $681
Average price of an international flight $1,231
Average cost for a round-trip domestic flight $350
Average price for a domestic hotel stay $598
Average price for an international hotel stay $772
Average price for a domestic rental car reservation $590
Average price for an international rental car reservation $696
Average price for a domestic cruise $1,507
Average price for an international cruise $2,902
Average price for a domestic tour $1,058
Average price for an international tour $1,208
Number of people travelling by plane 4.7 million
Number of people travelling by cruise, bus, and train 1.55 million

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Demand for air travel exceeds supply

Thanksgiving has always been one of the busiest and most expensive times to travel in the US. This year, demand for air travel has exceeded supply, with demand increasing at a much faster rate than airlines are able to supply.

Demand for air travel has been steadily increasing over the past few decades as the nation's population has grown and technological advancements have made air travel more affordable and accessible. In 2019, air travel demand reached record highs. However, the COVID-19 pandemic disrupted travel plans as strict travel restrictions were put in place. During the pandemic, many airlines retired assets, including aircraft and crew members, to cut costs, and laid off staff members.

Now, as travel restrictions have eased, demand for air travel has surged again, but many airlines lack the necessary resources to meet this demand. The larger shortage, between staff and aircraft, is staff, as hundreds of US aircraft sit idle in storage with no crews to operate them. This limited supply is one of the main reasons airfare is more expensive this Thanksgiving than in previous years.

The increase in ticket prices can also be attributed to increased operating costs. Everything from fuel to aircraft parts has increased significantly in cost since 2019, and airlines have raised ticket prices to account for these added costs.

The high demand for air travel during Thanksgiving, coupled with limited supply and increased operating costs, has resulted in a dramatic increase in ticket prices. This has made it more expensive for Americans to travel during the holiday season, with airfare prices exceeding those of previous years.

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Airlines are struggling to get back to pre-pandemic capacity

Thanksgiving has always been one of the busiest and most expensive times to travel in the US. This year, however, air travel during Thanksgiving is set to be even more expensive, with demand exceeding supply. The average cost of a round-trip domestic flight in the US this Thanksgiving season is $350, a 7% increase over 2019.

Airlines are facing challenges in meeting the high demand for air travel during this period. One of the main issues is staffing shortages. During the pandemic, many airlines downsized their operations, laying off staff, including crew members and ground personnel. Now, as travel demand rebounds, airlines are struggling to find enough workers to meet this demand. This limited supply of staff is a significant factor in the increase in airfare prices.

In addition to staffing shortages, airlines are also facing a shortage of aircraft. Hundreds of planes are sitting idle in storage due to a lack of crews to operate them. This further reduces the capacity of airlines to meet travel demand.

The increased operating costs for airlines are another factor contributing to higher airfare prices. Since 2019, there has been a significant rise in the cost of fuel, aircraft parts, and other necessities. To offset these increased costs, airlines have been compelled to raise ticket prices.

The combination of high demand, limited capacity, and increased operating costs has resulted in a dramatic increase in ticket prices for Thanksgiving travel. Airlines are struggling to keep up with the surge in travel demand and are still working to rebuild their operations to pre-pandemic levels. As a result, travellers are facing higher costs and limited options during this busy holiday season.

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Jet fuel prices are rising

The price of jet fuel has been steadily increasing since 2019, and it is a significant factor in the rising cost of air travel during Thanksgiving. This increase in operating costs for airlines has resulted in higher ticket prices for passengers.

The rising cost of jet fuel is not the only factor contributing to higher airfare prices during Thanksgiving. Demand for air travel during the holidays has been steadily increasing over the years, and it has almost returned to pre-pandemic levels. This high demand, coupled with a limited supply of aircraft and staff, has led to a significant increase in ticket prices.

Airlines retired many assets during the pandemic, including aircraft and crew members, to cut costs. They also laid off staff in various departments. Now, with demand increasing, airlines are scrambling to find enough workers and resources to meet this demand. This limited supply is another reason why airfare is more expensive during Thanksgiving.

The increase in jet fuel prices has a direct impact on the cost of air travel, and it is one of the factors that make American reward travel more expensive during Thanksgiving. With airlines also facing staffing and aircraft shortages, the cost of air travel during this holiday season is expected to be high.

To save money on air travel during Thanksgiving, it is recommended to fly on less popular days and avoid the Sunday after the holiday, which is typically the busiest and most expensive day for air travel in the US. Booking in advance can also help secure better prices, as last-minute bookings tend to be more costly.

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Fewer scheduled flights

Thanksgiving is one of the busiest and most expensive times to travel in the US. There are several reasons why American reward travel is more expensive during Thanksgiving, and one of them is the fact that there are fewer scheduled flights.

During the pandemic, many airlines retired assets, including aircraft and crew members, to cut costs. Airlines also laid off staff members beyond the aircraft crew, such as office staff and ground personnel. This has left companies scrambling to find enough workers to meet the growing demand that came in 2022. In fact, the larger shortage between staff and aircraft for most airlines is staff, as hundreds of US aircraft sit idle in storage with no crews to operate them. This limited supply of flights is one of the reasons airfare is more expensive during Thanksgiving.

The demand for air travel during Thanksgiving has also increased at a much faster rate than airlines are able to supply. While demand is still lower this year than in 2019, many airlines lack the necessary resources to meet the current demand.

The combination of fewer scheduled flights and higher demand has resulted in a dramatic increase in ticket prices as demand has begun to outweigh supply. In fact, the average cost for a round-trip domestic flight in the US during Thanksgiving week is $350, a 7% increase over 2019.

To save money, travelers can consider flying on unconventional days. For example, flying on Cyber Monday is 17% cheaper than flying on the Sunday after Thanksgiving, according to Hopper's 2022 Holiday Travel Outlook. Similarly, the Monday before Thanksgiving is 15% cheaper than Wednesday, according to Expedia data analyzed by NerdWallet. On average, Black Friday fares are $175 less than the weekend days after Thanksgiving.

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Higher operating costs

One of the reasons for the high cost of American reward travel during Thanksgiving is the higher operating costs for airlines. This includes the increased cost of fuel, aircraft parts, and other resources necessary for their operations. These added costs are passed on to the consumers in the form of higher ticket prices.

The increase in operating costs can be attributed to several factors. Firstly, there has been a significant rise in fuel prices, which affects not only the cost of operating the aircraft but also the cost of powering airport infrastructure and facilities. Additionally, the cost of aircraft parts and maintenance has gone up, impacting the overall operating expenses for airlines.

Furthermore, the limited supply of aircraft and staff has also contributed to higher operating costs. During the pandemic, many airlines downsized their operations, retiring aircraft and reducing their crew members to cut costs. Now, as demand rebounds, they are facing challenges in acquiring the necessary resources to meet this increased demand. This has resulted in a situation where hundreds of aircraft remain idle due to a lack of crews to operate them.

The shortage of staff is particularly notable, with airlines struggling to find enough workers to meet the growing travel demand. This issue is not limited to pilots and flight attendants but also includes ground personnel and office staff who are essential for the smooth operation of airlines. The lack of adequate staffing leads to increased costs as airlines have to offer higher wages and incentives to attract and retain employees.

Moreover, the impact of the COVID-19 pandemic on the aviation industry cannot be understated. The restrictions and decrease in travel demand during the pandemic led to a significant reduction in the number of flights and available seats. As a result, airlines were forced to adjust their operations, and the subsequent increase in demand caught them off guard. The rapid rise in demand, coupled with the limited supply of resources, has resulted in a significant increase in operating costs for airlines.

In conclusion, the higher operating costs faced by airlines during Thanksgiving are a result of increased fuel prices, higher aircraft maintenance expenses, limited supply of resources, and the impact of the COVID-19 pandemic. These factors have collectively contributed to the surge in travel expenses during one of the busiest and most expensive times to travel in the United States.

Frequently asked questions

The demand for air travel during Thanksgiving usually exceeds the supply, causing a hike in airfare prices. This is further exacerbated by increased operating costs for airlines, including higher fuel prices and aircraft maintenance.

The average cost of a round-trip domestic flight during Thanksgiving week is $350, which is a 7% increase compared to 2019. However, prices can vary depending on the specific travel dates, with the Sunday after Thanksgiving being the busiest and most expensive day.

Yes, travelling on less popular days can help save money. For example, flying on Thanksgiving Day itself or the Monday before Thanksgiving tend to be cheaper options. Booking in advance and using reward points or credit card benefits can also help reduce costs.

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