Experts see airfares, fees rising in 2012
Airfares, fees, expected to rise in 2012
Northwest travel guides
FORT LAUDERDALE, Fla. — Airlines were walloped by rising oil prices in 2011 and fliers were forced to fork out more for airfares.
Experts say 2012 could hold much of the same.
"We're going to see higher airfares," said Anne Banas, executive editor of SmarterTravel, a website for travelers.
But how much higher is a matter of debate.
"Fares are probably going to inch up," said George Hobica, founder of travel website AirfareWatchdog.com. He said airlines are cutting the number of seats they fly and mergers may eliminate competition.
Carlson Wagonlit Travel is forecasting a 3.5 to 4.1 percent jump in North American airfares. Other experts say fares could climb higher, partly because of more regulation.
One key may be the cost of fuel. An increase in oil prices early in 2011 helped push fares up 8.5 percent in the second quarter of last year, the latest figure available from the U.S. Department of Transportation.
An airline tried to raise fares 22 times last year. The first six came when fuel costs were rising and were adopted industry-wide. Of the next 18, only three succeeded, according to travel website FareCompare.com.
Oil is now about $99 a barrel, compared with $113 a barrel at its 2011 peak in April.
Here's a look at what else consumers can expect from air travel in 2012:
CONSOLIDATION: Besides fewer plane seats, there also could be fewer airlines flying if a merger of American Airlines, which recently entered Chapter 11 bankruptcy protection, takes place.
Industry instability has Meg Cohn of Delray Beach, Fla., concerned about her stash of airline points, which she plans to use for trips to Connecticut or Washington, D.C. this year.
"What worries me? Having all my points canceled by an executive decision or Chapter 11 or not being able to use points because few seats are available for point assignment," Cohn said.
DEALS: Even if there's a general increase in prices, good deals still will be available, especially during off-peak hours or midweek periods, Rick Seaney, chief executive officer of FareCompare, said recently.
As it becomes harder to shave costs off air travel, people will change their planning process, Banas predicted. "Cheap deals and what's available will dictate where they travel."
Internet flash sales or limited-run discounts that help airlines and hotels to fill empty seats and beds, and "surprise" travel deals will be increasingly popular, she added.
CHARGE FOR EXTRAS: Comfort, perks and new ways to upgrade will be much discussed in 2012, according to Cheapflights.com.
With more airlines now charging for extra legroom seats or for advance seat selections, the cost of air travel will creep up. Still, mini-upgrades like these may appeal to economy fliers seeking premium-class indulgences at minimal costs.
Delta Air Lines plans to add Economy Comfort seats that offer four more inches of legroom and more reclining capacity fleetwide by this summer 2012.
The premium economy seat category launched on international flights last year priced from $80 to $160 extra each way.
FEES: Led by Miramar, Fla.-based Spirit Airlines, carriers have increasingly used fees to raise revenue even if they hold the line on fares. In 2012, "airlines will think of new ways to raise revenue," Hobica said.
Some already have.
Beginning Jan. 24, Spirit will begin charging customers $5 if they have their boarding pass printed by an airport agent. It will charge $2 for kiosk-printed boarding passes starting June 30.
Spirit's cornucopia of fees has irked some fliers.
Pam Finkelstein complained that her daughter had to pay extra for an overweight checked bag on a Spirit flight from Boston over the Christmas holidays. "The extra charges were more than the cost of her plane ticket. Ridiculous!" said Finkelstein, of Boca Raton, Fla.
A fee to speak to a real person at airport check-in could be another reality facing travelers soon, Hobica added.
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