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Air, hotel rates bad omens for holiday season
Airline seats have been cut in 39 states but demand is still dwindling as biz travelers cut budgets and leisure travelers are resistant to higher prices, say industry insiders.
“That does not bode well as we approach the holiday season,” writes Sougata Mukherjee, editor of the Triangle Business Journal.
As a business, airlines are facing fading demand and various other problems, analysts say.
They’re reporting “lackluster demand, as some nervous companies trim travel budgets and vacationers pull back,” says USA Today.
With the exception of Europe, second quarter profits worldwide are down, reports the International Air Transport Association (IATA). Passenger demand fell 1.6 percent in August over July, said IATA.
Where will air fares go next?
Up despite the lower demand, predicts George Hobica of Airfarewatchdog.com.
As for hotels, get ready for hotel rates to rise above pre-recession prices, writes the LA Times.
In the first week of September, the average room rate in the US rose to US$107, just short of the high mark of $110 set in March 2008, according to the latest statistics from Smith Travel Research Global in Tennessee.
In Los Angeles, room rates climbed to an average of $127, short of the $133 peak set in summer 2008, says Smith Travel Research.
By David Wilkening
David
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