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Business and personal air travel is up, in spite of increased costs. By shopping around and not being a slave to package deals, a frugal tourist can save big. Meanwhile, airlines say they are forced to keep costs high because of federal demands. In reply, they are taking a "too big to fail" attitude with Congress. Article resource:
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Increasing air fare costs
It comes as no surprises that Airfares are increasing again. The divisional dean of the Tisch Center for Hospitality, Tourism and Sports Management at New York University, Bjorn Hanson, points out that the travel costs are anticipated to increase four to six percent this year alone. In 2007, tourism costs dropped substantially, but they started to increase again last year. Annually, they have seen steady increase.
Travelers are nurturing their pocketbooks while soaring now, although it is not hard to do in case you are trying to find great bargains on the internet. A lot of travelers are getting smarter about preparing trips to take advantage of sales.
More vacationers going one-way
In 2002, 19 percent of vacationers used non-traditional itineraries where they would make up their own plan instead of having an itinerary. A 3rd of all airline travelers did this in 2011 though, according to the Agency of Transportation Statistics.
Are they restricted?
Restricted fares and unrestricted fares will cost you different things, but you could save big fees in the end by choosing unrestricted fares in the first place. They make it possible to change last minute plans and give more flexibility.
Restricted fares save a ton of money, but you'd better be sure you book the flight you need to get. Often these tickets have to be booked well in advance, and if they allow any changes or cancellation at all, the privilege comes with a large fee.
The Motley Fool explained that Alaskan Airlines charged $11,000 in fees in 2011 for canceling reservations. Delta charged $766,000 while American Airlines only charged $500,000.
Airlines jointly cry foul
It has become necessary for airlines to start facing more and more regulation and taxation, regardless of the belief that federal regulators would really like to keep away from having to pay them. Congress heard from one airline Thursday that pointed out businesses is being taxed to death, making it impossible for them to help grow the economy.
The North American VP of the International Air Transport Association is Douglas Lavin. He said:
"We need government to stop looking at us as a cash cow and look at us as an economic engine ... We will be very aggressive here in getting this message out to regulators and members of Congress."
House Republicans were opposed to the May 22 U.S. Senate vote that happened after this to try and increase airfare by $5 a ticket.
Sources
New York Times
USA Today
Daily Finance