Bad news to them, good news for us - but don't get too comfortable with it
August 28th 2009 13:32
Category: No Category
So it seems that all these cheap airfares are here to stay for at least another 12 months, as it was reported in today's Sydney Morning Herald.
Perfect Storm creates cheap international flights from Australia
No, the economic crisis is not too blame, rather - oversupply. More and more carriers are offering flights out of Australia. V Australia who started last year flying to the US, now joined by the world's largest airline network Delta (a long established US company now flying to Australia as well) - there is too many seats, with too little bums to fill them.
So comes the cheap flights. Bad news for the airlines though - with majority of the world's airlines reporting heavy losses - Aer Lingus' loss almost quadruples; Japan Airlines records $1bn loss; Virgin's V flying at a loss ; and a Historic loss for Singapore Airlines ... etc
But you'll have to be quick and not be too choosy. It works this way - there may be 1000 seats on the flight. When they advertise something like $980 to LA return including taxes - it means if this price is available.
Often, they only sell 5-10% the amount of seats on the flight at the lowest price, and once that's sold out, it climbs to the next price range.
Next time you are at the travel agents, don't get all huffed and puffed when told the sale price is not available during the dates of your travel, because most likely - you are either too late, or have chosen a school holiday to travel when all the cheaper seats are not valid for sale.
Another thing - these prices ARE temporary. We are constantly hearing objections to $1900 airfares to Europe, clients complaining it's "too expensive, when it cost only $980 to fly to LA" (United Airlines sale - ends Monday - hurry) - but don't forget, last year, at this time, a flight to Europe normally cost on average $2200 including taxes.
But people are never satisfied until they get something for free.
Actually, forget that - people are never satisfied. Even if they do get something for free - there is always something to complain about.
Anyways, as it seems we can still pay less than $2000 to Europe and US for at least 12 months up to 18 odd months. So that's gotta be good news to intrepid travellers.
However, don't get too comfy with these prices, as eventually, as more and more airlines suffer financial hardship, some smaller ones may collapse and merge with other airlines, which means eventually there will be less airline options available which often results in less competition and then - they all bring up their fares to make up for what they are losing now.
Time to go on a holiday
Perfect Storm creates cheap international flights from Australia
No, the economic crisis is not too blame, rather - oversupply. More and more carriers are offering flights out of Australia. V Australia who started last year flying to the US, now joined by the world's largest airline network Delta (a long established US company now flying to Australia as well) - there is too many seats, with too little bums to fill them.
So comes the cheap flights. Bad news for the airlines though - with majority of the world's airlines reporting heavy losses - Aer Lingus' loss almost quadruples; Japan Airlines records $1bn loss; Virgin's V flying at a loss ; and a Historic loss for Singapore Airlines ... etc
But you'll have to be quick and not be too choosy. It works this way - there may be 1000 seats on the flight. When they advertise something like $980 to LA return including taxes - it means if this price is available.
Often, they only sell 5-10% the amount of seats on the flight at the lowest price, and once that's sold out, it climbs to the next price range.
Next time you are at the travel agents, don't get all huffed and puffed when told the sale price is not available during the dates of your travel, because most likely - you are either too late, or have chosen a school holiday to travel when all the cheaper seats are not valid for sale.
Another thing - these prices ARE temporary. We are constantly hearing objections to $1900 airfares to Europe, clients complaining it's "too expensive, when it cost only $980 to fly to LA" (United Airlines sale - ends Monday - hurry) - but don't forget, last year, at this time, a flight to Europe normally cost on average $2200 including taxes.
But people are never satisfied until they get something for free.
Actually, forget that - people are never satisfied. Even if they do get something for free - there is always something to complain about.
Anyways, as it seems we can still pay less than $2000 to Europe and US for at least 12 months up to 18 odd months. So that's gotta be good news to intrepid travellers.
However, don't get too comfy with these prices, as eventually, as more and more airlines suffer financial hardship, some smaller ones may collapse and merge with other airlines, which means eventually there will be less airline options available which often results in less competition and then - they all bring up their fares to make up for what they are losing now.
Time to go on a holiday
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