Most economic analysts were projecting an economic recovery in 2010 (albeit late 2010) and into 2011. Most travel experts knew the airlines would increase what they considered pathetically low airfares as soon as they saw ANY recovery begin. In the yearly outlook report that I started back in November 2009 (but never published), I also predicted increased airfares in summer of 2010, if not by Spring.
According to the Wall St. Journal, that is exactly what has happened. In an article titled "Travel Watch", they warned that airfares had risen 22% over 2009 levels and 4% higher than 2008, when fares and capacity had not been reduced as yet. Not so surprisingly, airfares to Europe have risen almost 30%. (Well, at least I'M not surprised. I predicted a pent up demand for travel - both to Hawaii and overseas coming in 2010). And the end is not nearly in sight. Next year forecasts to being a blockbuster year in travel - only held in check by a balky economy. But that very economy is strengthening daily so I see fares rising another 25% next year to boot!
Which means it is actually a BARGAIN to travel this year. (At least compared to what is coming over the next few years). You may well have seen the lowest fares you may see in your lifetimes over the last few years and now it will be time to pay the piper. The airlines will make sure of that!
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