Report: Airfares Should Remain Low in 2017

(Source: Internet)

Travelers got some good news when the Global Travel Price Outlook report was released recently by the Global Business Travel Association.

The study suggests that, worldwide, airfares will rise in 2017, but only by about 2.5 percent on average. In some parts of the world where certain variables will continue to keep fuel prices low and exchange rates favorable, fares could actually fall.

Biggest fare increases in North America

Unfortunately, for fliers in North America, prices are projected to rise more than they will in other parts of the world. Travelers will pay about 3.7 percent more to fly next year. This is because airlines are slowing down their capacity growth and focusing their expansion efforts on the most lucrative international and high traffic routes. Fewer seats should cause demand to inch up and, with it, airfares.

The good news is that low cost carriers will continue to affect the market in the United States.

One of the most important trends in recent times is that LCCs are being seen as more mainstream. This is especially the case with business travelers. Carriers like JetBlue, Virgin America and Southwest are driving down fares on major business travel routes. This should help keep price hikes in check for the time being.