airplane.jpg

We're starting to hear that phrase again: capacity cuts. We began hearing it last year as airlines got hit hard with high fuel costs, weakening demand and a tough economy. Delta and American announced today that they will further reduce the number of seats sold on flights this fall, and other major airlines are considering it, a reminder that this recession is still alive and airlines are still feeling the crunch. These cuts are in addition to previous announcements made in March by both Delta and United.

What does this mean for travelers? It means that prices will likely jump in the fall. In other words, the time to travel is NOW, and I'm not just saying that because I work for a travel company. Just take a look at the numbers: This summer, the average domestic airfare is $299, down 17 percent from last summer, and the average price of hotels is $142 per night, a decrease of 14 percent.

For a family of four, that represents a combined savings of $374 on accommodations and airfare for an average six-night domestic summer vacation. We're seeing a similar story for international travel as well. Both average international hotel rates and airfare are down 14 percent compared to last year, so a family of four can save an average of $847 on airfare and hotel for the typical 13-night international vacation.

Bottom line: Travelers are being spoiled by cheap travel options this summer, but we can't expect these prices to last forever.

In addition to the increased cost of travel, capacity cuts affect travelers in other ways as well. Here's a look at what else travelers can expect as a result of these cuts:

  • Fewer Options: Travelers will have fewer itineraries to choose from, and some routes may disappear completely.
  • Schedule Changes: As airlines cut routes and flights, customers will be reaccommodated on other flights as needed.
  • Crowded Planes: Fewer itinerary options leads to higher load factors, so don't count on flying standby or getting that upgrade.

*Average costs based on Travelocity's Summer Travel Report.