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As recession dwindles, travelers next year face higher prices
Whether you’re a vacationer or a business traveler, one trend appears obvious for next year: your costs will go up.
"Travelers won’t be as much in the driver’s seat in 2011 as they were this year," said Bruce Baltin, Los Angeles-based senior vice president of Colliers PKF Consulting USA, a hospitality consulting firm. He told the LA Times:
"There still will be deals in 2011."
Trends, condensed:
Hotels
Last year was the biggest downturn in the US lodging since 1935 when statistics were first put out.
But occupancy is up now, so higher prices are expected. PwC US, a New York-based consulting firm, forecasts rates will rise nearly 5 percent in 2011.
Another reason for escalating prices is few new properties are expected to open in the next couple of years.
Airfare
Travelers generally will probably pay more for foreign flights in 2011 than in 2010, and about the same for domestic flights, according to Rick Seaney, chief executive of FairCompare.com.
Some fares soared almost one-third or more this year.
Although such big increases aren’t in store for 2011, American Express is forecasting that fares will increase as much as 9 percent on routes to Europe.
Industry analysts say consumers should watch out for new fees and more surcharges for peak flying dates.
Cruises
The biggest change in cruise costs is more a la carte pricing, says Smarter Travel. “The mass-market cruise lines have seen the huge profits that airlines are reaping from various fees and charges, and I think they’d like some of the same,” it says.
Observers say mass-market cruise lines are sharing airline price pressures and seeing the easy-picking pricing opportunities in fees. Mass market lines will add fees next year, though luxury cruises will probably resist them.
By David Wilkening
David
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