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Summer travel costs
Pain at the pump extended to pain on the plane. Experts say prices are rising and passengers say it's been tough to avoid travel despite the costs. FOX 13's Danielle Zulkosky reports.
TAMPA, Fla. - It seems like nothing can stop U.S. travel demand this summer.
Julian Kheel is a travel analyst and the CEO and Founder of Points Path.
What they're saying:
Kheel said travelers are not backing down despite steep increases in prices over the last year.
"At the end of the day, these higher prices aren't changing the demand of travel," Kheel said. "People are still more interested in experiences rather than buying products, and so travel demand is continuing to go forward."
Kheel said that is in large part a value-based decision as Americans are forced to decide what to cut and what to keep in their budgets.
"I think that people are going to still value travel going forward," Kheel said. "When you are looking online, and you see those Instagram photos of your friend or your colleague who went to some gorgeous location, there's certainly an element of a fear of missing out, or FOMO."
By the numbers:
Flight prices increased 15 to 20% domestically and 7 to 14% internationally, according to Kheel.
Kheel cites one reason being fuel costs are increasing as the tensions in Iran drag on.
"Fuel prices are certainly a large part of it," Kheel said. "They make up over 20% of an airline's expenses."
Kheel also said it is supply and demand.
"But because travel demand really hasn't gone down as a result, airlines are feeling free to raise their prices without having to worry about travelers abandoning them," Kheel said.
Local perspective:
One Tampa traveler, Joseph Hurray, backed up that theory and said he is going to find a way to make travel work, despite paying more.
"My family's getting older now, and you know, and I live down here, so it's not like I can just jump in a car and go… so flying is really my only really good alternative," Hurray said.
Hurray said he felt financial pressure when his ticket home increased by $250 since last year.
"It depends, you know, on finances and stuff," Hurray said. "I mean, it's — luckily I'm still able to do it. So as long as I can do it, I'll do it, and if I can't, I can't."
On top of all of this, travelers will soon see the effects of Spirit Airlines shutting down, just not immediately.
"The demise of Spirit means that routes where Spirit competed with the big airlines are probably going to see higher prices," Kheel said. "That may be more over time."
Another option
If you're looking to save while still traveling this summer, driving might be an alternative, but only if you're staying close to home.
"You're still going to pay a lot more at the pump than you did last summer. That means that getting in the car versus an airplane isn't necessarily going to be the best choice," Kheel said. "However, if it means going a shorter distance, that could end up saving you some cash."
Traveling tips
Kheel recommends booking a refundable ticket now and searching for better deals in the meantime.
Kheel also suggested saving points for later as he said those points are devalued during this time.
The Source: