A major travel organization reported in early Nov. that travelers plans this holiday would be on a par with last years. Kayak had also reported that 73% of travelers will continue with travel plans even if costs are up 20-30%. Meaning the 'recession' might still affect the Travel and Leisure sectors but it won't affect holiday travel in 2008. But on the other hand, the Air Transport Assoc of America reported that Thanksgiving travel would be down 10%, marking a decline in passengers for the first time in 7 years. So who was right?
Results for Thanksgiving were xxx as reported by XXX. This could mean BOTH were right - the same number of people planned to travel but fewer were going to fly. It is too early to know if Christmas will match Thanksgiving stats as well.
There is one thing however that can't be disputed: the airlines purposed to raise fares and make more money this fall and instead people stopped booking. Travel everywhere was down as expected and even the safe havens from the past (Las Vegas, Hawaii) were hurting. So the airlines did what they always do and slashed fares plus announced discounted fares for what many thought would be not available seats. And consumers responded by traveling.
Whether the airlines losses will shrink remains to be seen next year. But it's obvious they were sinking more than they expected in early fall so they cut fares and I mean dramatically. The LATimes reported lower domestic and said fares to Europe were down 25% versus last year.
So my advice if you are planning a trip after the first of the year, like to Asia or Europe, the strengthening dollar (apparently everywhere else other than the US!) means that in 2009 you will be able to get the greatest fares to be seen in years. It might be your Christmas gift to yourself.