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Money expert Clark Howard recently shared an article on X (formerly Twitter) referring to falling prices for domestic flights. Airline ticket prices usually go up in the summer when there are more tourists. But there are other factors driving flight prices higher, which are now leading to lower prices.
Why airfare prices are falling
“The way dynamic demand pricing works is that as demand increases on a flight-by-flight basis, the fare for that flight will increase,” Clark explained on the website. Clark.com. “Last year the airline went back to pre-coronavirus and used 2019 as the base year. Now they are using his 2020 data.”
Prices were higher in 2020 as flights decreased due to labor shortages and lockdowns. However, domestic travel demand will decline in 2023 compared to 2021 and 2022. This is likely due to people holding back spending out of fear of a recession. Or it could be due to the hassle of air travel, with airline-controlled delays rising from 5.2% in 2018 to 7.6% in 2023. Figures released by the New York Post.
For whatever reason, airlines are cutting prices as domestic travel demand declines. Clark says prices typically drop 30 to 45 days before he travels.
How to take advantage of price drops
It is wise to know the price as the price of the ticket may drop after booking. Set up alerts on your favorite travel websites to receive a text, email or push notification when prices drop. Apps like Expedia, Google Flights, Kayak, Hopper, and Skyscanner all notify you when the price of a flight you’ve viewed or purchased has dropped.
Clark warns, however, that the method is not foolproof. If you booked directly through the airline, you may not receive the notification. He explained to Clark.com that Southwest can’t easily see if the price of an existing reservation has dropped.
You should create a new booking and compare prices. If you find a cheaper flight, book it and cancel your existing booking. Make sure you don’t have to pay cancellation fees that may offset the amount you save. Fees can usually be avoided by joining the airline’s frequent flyer club.
Major airlines Delta, United, and American only charge fees on Basic Economy tickets.
Do this to save money on future flights
Finally, if you’re planning a Labor Day trip, a fall getaway, or any vacation plans ahead, book now. Experts say such low prices won’t last.
Hopper reported that domestic airfares fell 2% in August to an average of $267 per ticket. This plateau lasts until mid-September, but begins to rise as the holiday season approaches, reaching a peak in late November or early December.
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