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Travelers Fight Back Higher Air Fares

Posted on: Thursday, 23 November 2006, 12:00 CST

Squeezed by rising fares and crowded flights, U.S. air travelers are driving prices down by aggressively seeking cheaper deals.

Analysts say fare prices have risen as much as 15 percent in the past year, brought on by a strong economy and higher demand for air travel, which in turn helps the industry to raise prices, The New York Times reported Thursday. Lately, however, they have begun to notice drops in fares as more Internet savvy travelers search for cheaper fares.

The report says this may not comfort the industry, which continues to struggle to earn a profit. Airlines concede that Internet shopping, such as through Web sites like cheaptickets.com, has made it harder for them to raise fares, says the Times.

Henry H. Harteveldt, a travel analyst at Forrester Research, told the newspaper about 25 percent of air travelers now consult online newsletters and other sources of special deals before buying, up from 17 percent last year, and 17 percent use Web sites such as kayak.com or sidestep.com for last-minute deals.

Consumers have access to more and more information, Harteveldt said. It's exactly what airlines don't want consumers to have.

Source: United Press International

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