Where the (every day) chear air fares are

Air Fares: A Short-Term Forecast

According to the Bureau of Transportation and Statistics (BTS) domestic U.S. air fares had the largest percent decline since 2002. With summer in our rear view mirror, the prospects of a slow economic recovery and a decrease in airline capacity many experts believe prices have stabilized. There are still great deals out there; you just have to know where to look. The following suggestions may improve your odds.

Destination Selection

* Trips to business markets, especially those dominated by one carrier (a fortress hub) generally cost more. A fortress hub is a large airport dominated by one carrier. American at Dallas-Ft. Worth, Continental at Houston Intercontinental and Delta at Cincinnati are examples. In these markets the dominant carrier provides non-stop service to points throughout the nation. This level of service allows the carrier to maintain pricing power.

* Pick a destination that is served my multiple carriers (ideally both major and low cost carriers).

* Carriers like Air Tran, Southwest, Frontier, JetBlue, Virgin America, Spirit and Allegiant have taken market share from major carriers by introducing lower fares. This doesn’t mean they always offer the lowest fare. To maintain market share, major carriers will price match. Austin, Las Vegas and Ft. Lauderdale are three examples of markets with a healthy mix of major and LCC competition.

* Select a destination with multiple airports. Below are the average itinerary fares for Houston, New York City, Los Angeles, San Francisco and the Washington D.C. area. As you can see, the fares vary greatly by airport. If you are flexible research fares to an alternative airport. Tip: add ground transportation costs (taxi, car rental, public transportation) to your airfare to compare the total cost of each option.

Source: Bureau of Transportation and Statistics

The Lowest Average Fares in America

Of the top 100 airports (by originating passengers) the most affordable destinations are Long Beach, Oakland, Burbank, Dallas (Love Field) and Las Vegas. Conversely, the most expensive airports are Huntsville, Cincinnati, Grand Rapids, Savannah and Des Moines. Below are the top 30 from both ends of the spectrum. It should not shock you that many of the expensive markets have fortress hubs or limited competition.

Source: Bureau of Transportation and Statistics

A Final Tip: The Best Time to Travel in 2009

The period between Thanksgiving and Christmas is a low period for air travel. During this time both business and leisure travel drop significantly. In an attempt to generate bookings airlines open their inventory to their lowest fares. But don’t buy your ticket too soon...we’re still in a recession after all! There is likelihood even lower/sale fares will emerge between 60 and 21 days to departure – especially in competitive markets. Of course, the only thing less rational than air fares are trying to predict them...buyer beware and happy trails!

Travel Tips

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www.GivingGrinch.com

BudgetFree for Life!

Editor: Shreyas Nanavati

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Word or PDF version, click here.

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May Newsletter Redux: The Wall Street Journal recently discussed the book “Bottlemania: The Marketing of Thirst,” by Elizabeth Royte. It supports what we discussed in our May Newsletter. Here is the link.

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For the summer newsletters we’re going help off-set the raising costs of travel and transportation and improve your overall experience.

June 2008: “Balanced” Travel Tips

1. Trip Research: Online or check out travel books from your local library.

2. Hotels: Before making a bid, compare notes with other Priceline or Hotwire shoppers at http://www.biddingfortravel.com/ or http://www.betterbidding.com/

3. Consider Renting an apartment at your destination: More space, a fully functional kitchen and the feeling of being at home away from home…perfect for family or couples.

4. Passport Photos: Instead of paying $15-20 for “professional passport photos,” use your digital camera. Take several picks up against a neutral backdrop, select the best 2x2 of your face and print/cut the quantity you need.

5. Packing for Travel: Avoid baggage check fees by packing light. Coordinate your outfits and shoes so you can mix and match. For those with children consider (a) buying diapers upon arrival (b) bringing disposable bibs that cover outfits to prevent frequent change and (c) packing disposable toys to occupy your child’s attention. Suggested by Kristin in Michigan!

6. Airport Transport: Compare the cost of taxi, shuttle, bus services and airport parking before choosing your mode of transportation to and from the airport.

7. At the Airport: Bring an empty water bottle; after security fill it up at the food court water/soda fountain. Good for the pocket book and the environment. Suggested by Kanak in Michigan!

8. Local Transport: Buy local transportation passes in bulk if you’re going to use the service frequently. Consider staying next to a local transport hub for quick and cheap access around town.

9. Overnight Travel: In Europe overnight trains with sleeper accommodations more than offset a hotel night, it actually gets you to your destination while you sleep.

10. Staples: Instead of room service, visit a local grocery store and stock up on water, foods, snacks and drinks saving time and money. Suggested by Kristin.

11. Museums for Less: If you’re not a museum buff, drop right before closing time. Many are free the final 30 minutes.

12. Communications: Use internet cafes or public libraries to communicate to avoid over-priced hotel internet services or international calling fees.

13. Drink for Less: Beers, not spirits. A local beer carries the pride of a region…unless you’re in a vodka producing nation (than drink vodka). For those with children, stock up on libations at the local grocery store so Mom and Dad can have a drink after the kids doze off. Suggested by Kristin.

14. Less (foreign) Change: Get rid of extra foreign currency by paying as much of your hotel bill with your remaining local currency before using your credit card.

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How about some of your ideas? Drop me an email at: advice@givinggrinch.com

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Advice from our Readers:

Physiological Tips

When buying furniture, U-Haul rental costs $19/day versus $100 for home delivery. Suggested by Niki in Houston!

When looking for an apartment always ask for specials and waived application fees. Also, apartments without “views” tend to cost less. Suggested by Niki.

Safety Tips

Electricity: In many states competing energy companies charge different rates to attract customers. The delivery of energy is regulated so it doesn’t matter who you buy from, but the price difference can really add up. Suggested by Niki.

Social Tips

Gifting Giving suggestions from Kristin:

a. When you see a good gift idea on sale purchase it and put it in a dedicated area so you can 'grab and go.' Keep good re-gifting items, but post a note so you know where the gift originally came from.

b. Buy $1 cards for every occasion and keep them in a box (in the gift closet). Write out a full year's worth of birthday cards every January and keep them organized by date.

c. Reuse gift bags

Dining out? Look for BYOB (Bring your own bottle) restaurants. They charge a small corkage fee (for beer or wine), but you’ll always come out ahead. Suggested by Niki.