After reviewing the ups and downs of 2008, Mike Fridgen, the Director of Product Management at Farecast, released his predictions for travel in 2009. Mainly, Mike identified three main factors that will affect airfare pricing: consumer demand, oil prices, and capacity cuts.
Because of the economy, demand for travel decreased in 2008 and he believes this will continue in 2009, which will lead airlines to lower their prices in order to fill seats. Assuming oil prices stay low in 2009 (he thinks they will), airlines will pull back on surcharges which will also allow fares to drop. Finally, he sees capacity remaining flat in 2009. All this leads to his belief that 2009 will be a good year for those looking to travel, particularly in the winter and spring months.
Says Mike, “airlines and hotels are going to have to convince people to spend money on travel, which could mean a lot of deals and sales. I think there will be a lot of tinkering with fares as airlines try to find the right mix and that will lead to a lot of price movements.” In other words, there may be deals, but you’ll have to be quick in order to catch them.
One way to stay updated on those elusive deals is, of course, to use Farecast. With Farecast Alerts, you can grab a deal the second prices drop. You may also wanted to keep the Farecast Deals page bookmarked so you can keep an eye on the deals in your market.