New travel forecast for rental cars and hotel prices

New travel forecast for rental cars and hotel prices


Ready for your late summer and early fall travel forecast? According to the travel website Hopper, we’re going to see some relief on everything, but not for long! AirfareDomestic airfare will drop to $286 round-trip in August. That cost is down 25% compared to the peak cost for summer airfare in May, when average fares exceeded $400. That airfare is going to remain below $300 through September before rising in October for the holidays. Why are prices dropping? Airfare was up due to higher jet fuel prices and higher demand. Hopper says, “Flight prices drop seasonally in late August through mid-October, as demand tapers off following the peak summer vacation months. However, the drop this year is larger than usual as a result of the abnormally high summer prices and an earlier peak in demand. This fall, demand seasonality and jet fuel prices are the primary drivers of airfare.”Hotels Hotel prices are averaging $185 per night and are expected to decrease in August before rising in September and October. Prices usually decline after summer, but rates are showing an increase for stays in September and October at an average of $217 per night. Prices will be unusually higher this fall compared to years prior. Hopper says rates for the fall are 28% higher than in 2019.Rental Cars Car rentals are currently averaging $80 per day. Prices will remain higher through the end of summer and into mid-September. The demand and prices for rental cars will flatten in the fall but will then increase again during November and December as holiday travel picks up. Click here to read more about the report.

Ready for your late summer and early fall travel forecast? According to the travel website Hopper, we’re going to see some relief on everything, but not for long!

Airfare

Domestic airfare will drop to $286 round-trip in August. That cost is down 25% compared to the peak cost for summer airfare in May, when average fares exceeded $400. That airfare is going to remain below $300 through September before rising in October for the holidays. Why are prices dropping? Airfare was up due to higher jet fuel prices and higher demand.

Hopper says, “Flight prices drop seasonally in late August through mid-October, as demand tapers off following the peak summer vacation months. However, the drop this year is larger than usual as a result of the abnormally high summer prices and an earlier peak in demand. This fall, demand seasonality and jet fuel prices are the primary drivers of airfare.”

Hotels

Hotel prices are averaging $185 per night and are expected to decrease in August before rising in September and October. Prices usually decline after summer, but rates are showing an increase for stays in September and October at an average of $217 per night. Prices will be unusually higher this fall compared to years prior. Hopper says rates for the fall are 28% higher than in 2019.

Rental Cars

Car rentals are currently averaging $80 per day. Prices will remain higher through the end of summer and into mid-September. The demand and prices for rental cars will flatten in the fall but will then increase again during November and December as holiday travel picks up.

Click here to read more about the report.

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