Air fares predicted to go up in 2012 but how much?
Everyone in the prediction business sees higher airline fares this year, mainly due to greater demand and fewer seats. But how much more?
The numbers predicted are all across the board but one indicator should be how much oil prices go up.
An increase in oil prices in early 2011 helped push fares up 8.5 percent during the second quarter of last year, accoring to figures from the US Department of Transportaion.
Some experts say fares will only “inch up.” But they could go climb much faster, 10 to 20 percent, predicts others such as Anne Banas, executive editor of Smarter Travel.
Major reasons include more regulation and mergers that have cut back on competition that in the past kept fares down.
Carlson Wagonlit Travel forecasts airline pricing to increase from 3.5 to 4.1 percent in 2012 in North America.
“This is primarily due to rapidly increasing demand and limited supply in the region,” the site says.
American Express predicts prices in North America will increase up to five percent for economy and up to seven percent in business class.
These increases should stick even if some Americans opt to stay home amid fears of another recession, as airlines target travelers that are willing to pay more, the forecast said.
“Things look more bleak for Eruopean travel,” writes dealnews.com. A new “green tax” implemented by the European Union aimed at reducing emissions will levy a fee of aboaut $15 per passenger, each way, for flights to the US.
US fees on shorter fights within the EU will be taxed somewhat less.
By David Wilkening
David
Vegas’s Billion-Dollar Secrets – What They Don’t Want Tourists to Know
Visit Florida’s New CEO Bryan Griffin Shares His Vision for State Tourism with Graham
Chicago’s Tourism Renaissance: Graham Interviews Kristin Reynolds of Choose Chicago
Graham Talks with Cassandra McCauley of MMGY NextFactor About the Latest Industry Research
Destination International’s Andreas Weissenborn: Research, Advocacy, and Destination Impact
Graham and Don Welsh Discuss the Success of Destinations International’s Annual Conference
Graham and CEO Andre Kiwitz on Ventura Travel’s UK Move and Recruitment for the Role
Brett Laiken and Graham Discuss Florida’s Tourism Momentum and Global Appeal
Graham and Elliot Ferguson on Positioning DC as a Cultural and Inclusive Global Destination
Graham Talks to Fraser Last About His England-to-Ireland Trek for Mental Health Awareness
Kathy Nelson Tells Graham About the Honour of Hosting the World Cup and Kansas City’s Future
Graham McKenzie on Sir Richie Richardson’s Dual Passion for Golf and His Homeland, Antigua
ADS PRO 
Phocuswright reveals the world's largest travel markets in volume in 2025
Higher departure tax and visa cost, e-arrival card: Japan unleashes the fiscal weapon against tourists
Cyclone in Sri Lanka had limited effect on tourism in contrary to media reports
Singapore to forbid entry to undesirable travelers with new no-boarding directive
Euromonitor International unveils world’s top 100 city destinations for 2025