Airfares Dropping as Pent-Up Demand Eases

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Aug 01. Budget roundtrip domestic airfares will drop to $286 this month, 25% below this year’s peak in May, according to a Hopper projection.

The dip, which will bring prices in line with 2019, goes beyond the usual seasonal drop-off in August, which is 10% to 15%. It reflects diminished pent-up travel demand following a summer when many people took a substantial vacation for the first time since the onset of the Covid-19 pandemic, according to the analysis by Hopper economist Hayley Berg. In addition, demand peaked earlier than normal this summer.

Hopper defines budget fares as those that are lower than 90% of the fare quotes it tracks. Prices peaked at $410 in May.

The booking and price-predicting app expects budget domestic airfare to begin creeping back up in September and to reach an average of $368 roundtrip in December.

Source: Travel Weekly

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139280cookie-checkAirfares Dropping as Pent-Up Demand Eases