Runaway Airfare Inflation Is Starting To Cool Demand For Summer Travel, Data Suggests

 Runaway Airfare Inflation Is Starting To Cool Demand For Summer Travel, Data Suggests

CConsumers spent $ 1 billion less on plane tickets in April than in March, according to a report from Adobe Digital Insights released yesterday. Amid widespread airfare inflation, this could be a sign that demand will cool as we enter the busy travel season.

Air fares rose a staggering 19% between March and April, ddivided by factors such as higher jet fuel prices and hidden pandemic demand. In many cases, lack of pilotage and other disruptions led to a reduction in routes.

So far, travelers have found the record high for summer fares, according to Hopperthe deal search site and app. The average roundtrip domestic plane ticket this summer costs $ 383-34% more than pre-pandemic 2019. The roundtrip international ticket came in a $ 900-2% bump compared to 2019.

Consumers spent $ 7.8 billion on domestic tickets in April, according to the Adobe report, a 13% slide from March. Bookings dropped by 17% overall, according to the report.

Bookings of plane tickets in April were 5% higher than the level in 2019. Due to higher fares, that translated into a jump in spending of 23% in the same month in 2019. In March, bookings were 8% in March 2019 and spending increased 27% in comparison.

April was the third consecutive month in which 2022 plane fares rose to pre-pandemic 2019 levels. In January 2022, prices were 3% lower than 2019 levels.

The Adobe report suggests that airfare inflation has hit the point where it is now causing many consumers to back down from buying tickets.

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“We’re seeing signs that some are choosing to need their travel plans instead of canceling them right away,” said Vivek Pandya, lead analyst at Adobe Digital Insights. “While reservations for Memorial Day are absent, summer travel is above pre-pandemic levels.”

Meanwhile, Hopper said summer fares have not come first. The company predicts that average prices will rise 6% to 12% before peaking in late June. Hopper suggested that consumers start monitoring prices now using its price monitoring tool to be notified in real time when prices fall.

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