14 DAY TRIAL // Microsoft indicated that the 2009 holiday fares would be approximately at the same level as back in 2007 and certainly lower than in 2008. Information provided via Bing Travel, a vertical of the Bing decision/search engine, reveals that travelers would be able to enjoy fares that are more than 17% lower than for the 2008 holiday season. The Redmond company said that, for Thanksgiving, airfare for domestic destinations would cost on average $327, namely a 22% drop compared to the same period of last year, and at 2007 levels. Travellers who are looking to jump on a plane for Christmas will pay 17% less than in 2008, 8% more than in 2007, on average some $353.
The lower prices can of course be associated with the weakening economy. The global economic downturn has impacted customer demand, with airlines among the heaviest hit. Cutting airfare is nothing more than a strategy to attract more business, but don’t expect the trend to continue as the economy will start to strengthen again.
“In last year’s holiday travel forecast I talked about the ‘perfect storm’ of record-high oil prices, fuel surcharges and very high airfare. Oh, how quickly things change,” explained Bing Travel Fareologist Joel Grus. “As the economy fell into recession last fall, fares came down dramatically and have remained low through 2009. Airlines have cut capacity to the point that we will see pretty full planes, but at least for now, fares are still depressed. Early signs of a rebounding economy could increase consumer demand, pushing fares back up.”
Grus advised travelers to buy their tickets as soon as possible as the probability for prices to go up will increase as the holiday season approaches. At the same time, he noted that the best month for hunting airfare discounts is October, especially the first two weeks.
In addition to lower airfares, Bing Travel data also reveals that travelers will be able to take advantage of cheaper hotel rates. In this regard, Microsoft indicated that in September, October and November hotel rates would be 13% lower compared to the same months in 2008.