We are living in interesting times. From market volatility caused by China’s faltering economic situation, to continued uncertainty in Greece, to the declining price of oil, companies around the world are keeping a very close eye on the global economy. What kind of effect is this having on travel?
The price of oil continues to descend to its lowest point in many years. We’ve seen the effects at the gas pump, but travelers have continued to watch and wait for airfares to drop. According to Business Insider, they’re finally starting to. The Bureau of Labor and Statistics reported that average airline ticket prices last month dropped by 5.6%.
You may only see the results of lower fuel costs among the budget and low cost carriers at this point. In fact, this week saw several U.S. Low cost carriers offering fare sales. Business Insider reports that many of the larger airlines have posted increased profits over the last couple of quarters and are looking at this as an opportunity to invest in their business and grow strategically.
Even so, as fuel costs are expected to continue their decline into the fall, it is possible that even the big carriers could lower fares on economy seats to compete for customers on the low end of the market.
Will decreasing fares as a result of lowering fuel costs affect your company’s travel outlook? How are the world’s global economic events affecting your business? Let me know in the comments or on Twitter @TandTNews.