As a companion post to my last one regarding the outlook for hotel and airline fares in 2010, I use this post as support for some of my premises stated int the last post.
Southwest Air, the bell weather airline for discount fares, recently announced their next GREAT sale. But if you look over the last few quarters of airfare sales, you would notice the 'sales' are not nearly as high as they used to be. A great article from USA Today shows you why.
Even though I suggested fares WOULD rise more than the 5% American Express Business travel expects for next year and that seems to be exactly what Southwest is indicating, it is far to early to call this a trend or even call it "solid gold". Remember, airlines and hotels (as a general rule) put forth future rates that they HOPE to get. If and when the demand does not meet their expectation, prices are slashed. Southwest may be posting these fares HOPING to get these fares but they have proven to be the quickest with a sale and can change their rates on a dime. Which is what I expect will happen.
As a barometer, let's keep an eye on those cross country fares that USA Today noted. I fully expect to see fares back in the under $100 range before this fare 'sale' runs it course. As always, it is a waiting game and this game is played by both sides. Airlines wait to see how bookings are and people react and travelers wait to see how much the airlines are willing to lower fares. If you haven't the stomach to wait it out, feel free to book now but those who have played this game through the years will likely come out the winners once again when SUPER airfare sales result!
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