24 September 2009

Good travel deals extend to next year

There are plenty of bargain travel deals out there but will they be around next year? A growing number of travel experts say don’t panic…the deals will continue in 2010.

"I realize nobody knows the future, and predicting travel prices is a fool’s game. Still, it seems to me the real question isn’t whether there will be more deals, but where they’ll be," suggests travel commentator Christopher Elliott.

Some examples of why next year may be as good for deal-making as 2009:

Ã¯Æ’Ëœ Travel sales will basically remain flat in 2010 (they fell a projected 2.2 percent, to $123 billion, this year), says Mintel, an international market and consumer research firm.

Ã¯Æ’Ëœ Air travel and hotel sales will drop by roughly 2 percent each, reports Christopher Eilliott, a move that will also lead to cheaper competitive pricing.

Ã¯Æ’Ëœ Research by Deloitte & Touche paints an equally bright outlook for bargain-hunters. Leisure travel should pick up. "Leisure travelers will continue to seek out specials in 2010," said analyst Adam Weissenberg of Detoitte & Touche. "With hotels fighting to hold their rates as much as possible, they may offer an additional free night, complimentary spa treatment or discounted meals."

Ã¯Æ’Ëœ For its part, the airline industry is also boosting incentives for leisure travelers by offering such things as a monthly pass.

Ã¯Æ’Ëœ Hotel capacity is expected to grow as major chains such as Hyatt and Four Seasons open next properties, forcing prices down. Some hoteliers will want an immediate return.

Ã¯Æ’Ëœ Lackluster demand from leisure travelers may very well keep airline fares low, experts say. Only when "business and business travel picks up again, we’ll see air prices go significantly higher," said Chris Lopinto, president and co-founder of Expertflyer.com.

Why else should good deals be available? Peter Yesawich of Y Partnership has an answer:

According to his research, just over half of all active travelers say they plan to "stay fewer nights" on an upcoming vacation than they did this year.

The implications are of "considerable concern" to the travel industry, he says, because they could push prices lower.

By David Wilkening