Soaring Prices

On Monday I read about a sale at United Airlines offering unbelievably low fares. So I searched all the markets that I regularly monitor for a reduction in fares. Much to my dismay, all of those markets were up a few bucks.

Yesterday I got notices that, in all of the city pairs that I regularly monitor, the ticket prices had increased an average of about $100 each. Still more dismay.

The unbelievable sale, like most things that are too good to be true, was short-lived and virtually unobtainable. And what little truth there was to be found in that sale, it only lasted a day. United got great press out of the “sale”, and no one is reporting that the sale is over. So when you log on to higher prices today, or in the future, you might just think your getting some kind of great deal. Don’t be fooled.

As airlines emerge from bankruptcy with fewer seats, on fewer flights, in an economy that is now accustomed to paying higher prices for fuel - get used to seeing higher airfares.

Sure, the cost of fuel is outrageous. But that is not what’s going to keep airfares high. It’s reduced supply and increasing demand that will keep the prices high, and climbing higher.

As far as emerging from bankruptcy goes, that’s genius. Reduce costs by reducing service, amenities and available flights. Save yourself from bankruptcy in a market that is accustomed to paying high prices at the pump, and then use all of the above to raise prices and put your industry back in the black. It’s what great recoveries are made of. But the rest of us lose. We’ll pay more for less, and we’ll be plenty unhappy about it.

As airfares rise, driving the RV actually becomes more affordable. Based on today’s rates, I can actually drive my family of three across country in an RV, stopping for both work and play along the way, and still save money over the cost of flying, renting a car and paying for hotel rooms. We’ll all be more comfortable along the way, we’ll get to see much more of this great country of ours, we’ll eat better, and we’ll all be a lot happier at the end of our journey – even the dog.

As I’ve previously reported, I’ll be choosing the RV as an alternative to flying whenever I possibly can. If enough of you join me in that choice, something might just change. But I’m not holding my breath.