It took only a few clicks of the mouse to book flights and accommodations that made the customer and his wallet happy. Ah, those were the days. Now fuel costs break records daily and as we move into the heavy summer travel season, consumers will have to do much more clicking and way more research to find deals that meet their budget.
University of Central Florida Economist Sean Snaith expected fuel costs to drop as the economy slowed but instead they keep rising, staying above $100 a barrel this week. “It has been a bit paradoxical what is happening with fuel costs.
We were not expecting them to go through the floor to $25 a barrel, but we were anticipating around $75. Instead they keep setting new records,” he said. “We still expect to see those prices easing with the economic slowdown, but we also expect a bounce up during the upcoming heavy travel season.
If it is at $100 a barrel now, we could approach $4 a gallon for gasoline.” The average domestic trip this year, including airfare, hotel accommodations and rental car, will cost 6 percent more than in 2007, according to a March report in Forbes Magazine. Consumers as well as the airlines are responding to price surges.
Smaller is better According to SmarterTravel.com Contributing Editor Ed Perkins, booking with smaller, less known airlines can save a large chuck of change as opposed to using big-name airlines like US Airways.
Even deals on discount airlines like Southwest Airlines or AirTran Airways are drying up. Last year, when fuel prices were making record surges, the Orlando Sanford International Airport had its first increase in passengers since 2004, with 1.7 million passengers in 2007 from 1.6 million in 2006.
Domestic ridership has been modestly increasing since the mid-1990s but saw a 200,000 passenger jump in 2007, from 630,000 to 840,000, while international ridership has been steadily decreasing. OSIA Marketing Director Greg Dull said riding the airport’s only domestic carrier, Allegiant Air, provides Central Florida a low-cost alternative.
The airline can provide cheap flights by charging for things added into the price of mainstream airlines like beverages, pretzels and checked baggage. Allegiant now flies to 27 cities in the U.S., with 15 departures and 15 arrivals daily to and from 27 cities nationwide.
According to AAA Auto Club South, which assists consumers with everything from travel and lodging to auto buying, rising fuel costs have bumped up flight costs for all airlines. “There is no doubt though that fuel prices are affecting all airlines, big and small,” said local AAA spokesman Randy Bly. “People might make some changes to their summer vacation because of it, but in the past we saw very few people canceling trips because of high fuel prices.
I think that is what we will see again this year.” Instead of foregoing a summer vacation, many folks will get creative when planning their trip, Bly said. Booking in advance, flying during offpeak hours when fares are cheaper, and using a travel agent can all save money on the flight.
But to offset higher prices in the air, travelers can book accommodations that include a kitchenette to save on meal costs, or choose a destination with public transit to avoid a car rental and additional fuel costs. Next to major holidays, the springbreak season (this year the busiest week for spring break is March 16-23) and summer (July 4, the last two weekends in June and the first weekend in August are most popular) are the busiest travel times for fliers.
Added fuel costs can also be figured in this time of year because oil supply is reduced each spring, when U.S. refineries shut down for annual maintenance and to make the switch to the costlier summer blend. “Orlando, along with the rest of the nation, keeps setting record highs for fuel costs that are lingering above $3.20 per gallon.
If last spring’s trend continues this year, that cost will raise another 68 cents by summer,” Bly said. Pack light The Wall Street Journal reported that in an effort to offset fuel costs, airlines will reduce the number of discounted flights offered by companies like Expedia, Hotwire and Travelocity.
This will hike costs to consumers but will keep the airlines more competitive than if they raised base prices. Consumers should prepare to be nickel and dimed instead of seeing higher ticket prices. In order to compensate for higher fuel costs, this May United Airlines will start charging passengers $25 to check a second bag and $100 for any additional checked luggage.
US Airways is considering a similar measure. Peak-hour flights will increase in price because airlines recently got the goahead from the U.S. Department of Transportation to increase landing fees during busy hours to encourage passengers to book flights more evenly throughout the day.
In order to decrease in-air traffic, many airports plan to reduce the number of flights per hour, which will decrease flight supply and drive prices up. In addition to increasing fuel costs, suppliers are also expecting a slower summer for travel due to the weakening economy. In response, Perkins said airlines and hotels are likely to cut prices. In his online column, he recommends booking flights only two to three months ahead of time to catch last-minute deals.
Some airlines are employing measures that will not cost consumers but help with their bottom lines. For instance, to reduce aircraft weight some airlines are not filling their fuel tanks all the way or cutting hundreds of pounds by removing provided reading material from the cabins.
To maximize profits, most airlines have already swapped larger planes for smaller ones so fewer seats are left empty per flight. “Airlines are trying to offset these costs. They are doing all they can to keep in competition with other airlines,” Bly said. “Sometimes these measures do affect the passenger’s cost, so be aware of which airlines are doing what and pack light.”
