“They could go higher, things could change,” he said. “That’s why we started a little earlier than six months to have more time for planning.”
Fuel prices drive up travel costs
Rising energy prices as a result of the conflict within the Middle East have caused airlines to spend more on jet fuel, while drivers are seeing huge price increases on the pump. This also implies that whether travelers are taking a road trip or boarding a flight to a faraway destination, they’ll should open their wallets even further.
Travel agency experts say travelers are attempting to get across the higher prices in various ways: some book much sooner than normal, others take their possibilities and wait within the hope that prices will fall. WestJet, Air Canada and Porter Airlines have introduced fuel surcharges on certain flight bookings in recent weeks. In addition, there are already higher flight prices, which began to rise shortly after the attack on Iran by the USA and Israel at the tip of February.
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Some Canadians wish to complete their trips earlier to lock in prices and availability fairly than waiting and hoping for a deal, said Amra Durakovic, communications director for Flight Center Travel Group. “(Fuel) prices are still adjusting,” she said, but added that rising prices don’t appear to have deterred travel demand up to now.
Airfares fluctuate as demand changes
D’Souza and his friends are already ahead of the curve. “I talked to my friends and we thought, ‘We need to secure this before it goes up any further,'” he said. This week he managed to book his tickets to Japan at a “reasonable” price, though the trip features a one-day stay in a foreign country.
“Prices fluctuated depending on when my friends and I checked flight options and routes to Japan,” he said. “In some places they were stable, in other places they were higher.”
Jason Sarracini, CEO of travel agency OST.travel, said flights that don’t travel through the Middle East are still “fairly stable” and are experiencing fewer disruptions in comparison with routes that do, reminiscent of to the Philippines, Thailand or other Southeast Asian countries.
Sarracini said he hasn’t noticed a rush amongst most of his customers to book trips well upfront. They also didn’t cancel their plans in a rush, apart from some international travel.
“What we’re really seeing is hesitation,” he said. “It raises doubts in the mind of the consumer.” He said many persons are taking a wait-and-see approach. “The worst case scenario is that we stay home and don’t travel or visit our own country this year,” he said of the travelers’ mindset.
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Uncertainty results in caution when making booking decisions
In addition to the continuing boycott of travel to the U.S., higher travel costs are also playing a job, making many Canadians much more convinced to vacation near home — or where they feel protected, he said. “Safety and cost go hand in hand with everything going on in the world right now,” he said.
Durakovic agreed. She said travelers are prioritizing value and strategy, reminiscent of cheaper destinations and suppleness in travel planning – with safety in mind. Sun destinations, Europe and domestic travel are top priorities for Canadians, she said.
For an avid traveler like D’Souza, uncertainty plays less of a job on the subject of planning one other trip to Europe in a couple of months. While his flights between London and Toronto are booked, his trip to Dublin is just not yet set in stone, he said. “I will hold off on booking for a while just because it could change depending on the situation in the Middle East,” he said.
Sarracini said airlines can only raise fares until consumer demand falls. He suspects prices will stabilize in the approaching weeks as most airlines lock of their fuel contracts. “From what we know today, the increase in airline surcharges or fare increases will stabilize,” he said. Sarracini added it might give consumers “a really good idea of what’s out there and give them the opportunity to make a call in the next few months.”
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