The law of supply and demand is alive and well in the travel industry. People are reluctant to travel or can’t afford to travel. Demand is down on the weaker vacation packages and the prices drop to entice more sales. A current case in point is Mexico. The H1N1 flu has reduced travel greatly. There are plans afoot to entice people back to Mexico when the flu problem is resolved. One way to do that is to make the costs less and therefore more inviting.
But just as the prices drop in one area, they may be rising, or at least holding steady, in another destination. Popular destinations and cruise packages can usually fill themselves in normal economic times and prices normally go up as the departure dates grow near and bookings spaces become scarce. Below is an actual case in point for an airline ticket from Toronto to Europe.
| Flights You’re Watching: | 5:30pm one-stop Toronto to — on —– |
|---|---|
| Original quote: 04/09/09 | for return flight to Europe $1072.62 |
| Jump: 04/14/09 | Current Price: $1263.62 (up $191.00 since tracking started on 04/09/09) Purchase it now for $1263.62 |
| Jump: 04/24/09 | Current Price: $1074.77 (up $2.15 since tracking started on 04/09/09) Purchase it now for $1074.77 |
| Jump: 04/28/09 | Current Price: $1462.99 (up $390.37 since tracking started on 04/09/09) Purchase it now for $1462.99 |
| Now: 07:38 05/09/2009 | Current Price: $1484.88 (up $412.26 since tracking started on 04/09/09) Purchase it now for $1484.88 |
| Over one month, as the flight date grows nearer and demand holds steady or increases, the price quoted has gone up about 40%. Supply and demand works both ways. | |
Think about it!
If it’s a popular destination at peak travel times do not expect bargains.
These are unusual times as airlines adjust inventory and attempt to cut costs, but be aware that you are expected to pay the going rate at any point in time.
- Do you wish to pay any increases in price after purchase?
- Do you expect to have a refund if prices go down after purchase?
- I don’t think you can expect to have it both ways and still have a viable airline business.
Watch the prices and buy what you need when you need it. It’s that simple. If your destination and travel time frame are flexible then you can make more choices.
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