So, what’s the major cause for the price hike?
It’s delays in the delivery of new aircraft.
Have you jolted yourself awake from a mid-day doze at work, transported in your mind from the Amalfi Coast and back to your workstation recently? Well, you wouldn’t be the first to admit to dreaming of escaping to sun-drenched European beaches or epic adventures in Asia in the summer ahead. Your daydreams of vacationing are all part of the continued interest and growth of international travel which shows no signs of slowing since we came out of shutdowns in early 2021.
Though the stats show that our travel spirit is willing, our wallets are weakened by the storms on the horizon. All indicators are pointing to airfares going up and remaining high, with fewer deals and special offers available to consumers. Yikes!
Airline manufacturing delays hit passengers in the pocket
So, what is the major cause for the rising prices? It’s delays in the delivery of new aircraft. Yep, all those shiny jets you see on runways across the globe…well, just about every major airline is having trouble getting their hands on them, thanks to supply chain disruptions and some major quality control issues at one of the two biggest aircraft manufacturers. The certification (for safety, of course) and delivery of new aeroplanes is far behind where it needs to be.
This perfect storm of mess-ups and bureaucratic oversights means one thing for travellers: fewer seats to fill the ever-growing demand for summer escapes, leading to an expected price surge across most regions. Don’t you just hate supply and demand economics??
A look at peak travel seasons around the world
So, how will these delays affect different parts of the globe? Let’s take a look, region by region.
Europe
From relaxing Mediterranean cruises to tours of historical towns and world-famous landmarks, Europe is still the ultimate summer travel destination for millions of tourists. But limited seat availability against high demand is sure to push prices higher than usual. People flying popular routes – through the major tourist hubs of London, Paris, Rome, Amsterdam and Istanbul – could experience the biggest price jumps during the peak travel months of June, July and August.
North America
Just like Europe, North America is bracing for a travel surge with limited seat numbers during peak seasons. Internal travel within the US will be a particular focus for price bumps. Expect family summer escapes to Florida’s beaches and California’s sunshine as well as package tours to the slopes in Colorado and Montana in winter to be more expensive. The general rule is to be prepared for the price shock – with flights to and through the major hubs of Orlando, Atlanta, New York, Denver, Dallas, LA and Las Vegas certain to be affected.
Asia
Get ready to explore the vibrant streets of Tokyo or embark on a spiritual journey through India! With the Asia Pacific region experiencing a strong travel rebound, delays in new aircraft deliveries could exacerbate price hikes during major travel periods like Lunar New Year (February) or Songkran in Thailand (April). Airfares to Tokyo, Bali, Hong Kong, Seoul, Goa and Shanghai will only rise in 2024 as demand outstrips seat capacity.
South America
Planning that dream adventure of a guided tour in the Amazon rain forest or perhaps a road trip through the breathtaking landscapes of Patagonia? South America’s peak travel season coincides with the European summer and could potentially lead airlines to allocate their limited resources to more profitable European routes. The net result of removing assets will be the higher prices for popular South American destinations like Rio, Buenos Aires and Santiago that serve as both destinations and hubs for air travel.
Africa
Who hasn’t considered the thrill of a safari adventure or a relaxing beach getaway in Africa? The continent’s travel sector is the fastest growing market in the world. With domestic demand rapidly rising, the impact of the new aircraft delays – once thought to be less pronounced compared to other regions – exerts the same upward pressures on pricing. Inbound tourists now compete with locals for seats in and out of the busiest ports of Cairo, Cape Town, Casablanca, Addia Ababa, Lagos and Nairobi.
Middle East
From the new-built landmarks and opulence of Dubai to the rich cultural tapestry of Saudi Arabia, the region promises an unforgettable experience for vacationers. Though demand is always high, the Middle East’s peak travel seasons coincide with religious holidays. Limited aircraft availability could lead to steeper prices for travel during Eid al-Fitr and the Hajj, with millions of pilgrims looking for tickets to coincide with these events.
Australasia
Calling all sun-seekers and adventure junkies Down Under! Australasia experiences high travel demand during its summer months (December-February) which are the major break for schools, and at Easter. The delays in new aircraft deliveries could lead to a bumpy ride for your ticket price when it comes to popular destinations like Sydney, Melbourne, Brisbane, and Auckland or Christchurch in New Zealand.
Don’t let your travel dreams get grounded!
While the news might sound a bit unsettling there are a few tips to help you navigate these potential airfare hikes:
Be flexible: Consider traveling during shoulder seasons (the periods between peak and off-peak seasons) when demand is lower, and you might snag some better deals.
Book early: The earlier you book, the more likely you are to secure a seat before prices soar.
Explore alternative routes: Consider flying into a less popular airport or taking a slightly longer route with a layover to see if you can find a more affordable option. Just be mindful of the costs of flying to destinations a little further away from your accommodation.
Look for deals and promotions: Airlines and travel websites often offer deals and promotions, especially to loyalty programme members. Be sure to sign up for email alerts and keep an eye out for last-minute bargains.
With a little planning and savvy searching, you can still turn your travel dreams into reality, even amidst these airfare uncertainties.
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