Airfares on the Rise!!

If you've bought an airline ticket lately, you already know – airfares continue to rise. In fact, so far this year there have been five broad-based airfare hikes. In all of 2010, there were just four! This year is shaping up to mirror 2007 into early 2008 when oil prices jumped over $90 per barrel. There is one difference today, though: airlines also have bag fees and widespread "peak travel day" surcharges that add to passenger ticket totals.

Prices on average, cheapest roundtrip airfare (including taxes and fees) between top U.S. cities is around $318, compared to $319 in July of ’08. If you think it's bad on flights in the U.S., take a look at trans-Atlantic travel. Some long-haul flights are as expensive as they've been in a decade. For example, we have fuel surcharges to Europe right now averaging $360 roundtrip, not to mention the taxes on those flights that average another $120. Bottom line: you'll pay $480 for a trip to Europe before adding in any of the actual airfare! I can vouch for this…..I just paid $769.00 for a roundtrip ticket from Newark to Shannon, Ireland. The airfare was $399, with an additional $370.00 in taxes and fees!

So, what's going to happen? The airlines will see how much you are willing to pay, and that means more airfare hikes are on the way. If the planes stay full, the hikes will continue until enough passengers decide to stay home and not travel. That'll drop prices in a hurry.

So what does this mean for you? Be smart. Here are some do's and don'ts for airfare shopping:

• Don't be tempted to buy too early. In 2008, when airfare prices seemed to rise on a daily basis, people bought airline tickets for Thanksgiving in the summer to lock in prices, then were stunned when oil crashed and last minute holiday shoppers got incredible bargains. So shop early, but not too early: expect airfare for June travel to drop by mid-March.

• Be as flexible as possible. Of course, that's not always possible. Unless of course, your cousin in Chicago is willing to change her wedding date to accommodate your cheaper airfare.

• When flexibility is not an option, try this: shop Tuesday afternoons to find the cheapest flights.

If you can be flexible, even in little ways, you can save more. Ask yourself these questions:

• Are you willing to fly domestic red-eyes and sacrifice sleep?
• Are you OK with connecting flights?
• Can you fly to Europe before school lets out in May or early June?
• Can you travel for two weeks with just a carry on bag?
• Can you vacation in late August, early September or even after Labor Day?
• Finally, can you pack up and go at a moment's notice?

If the answer to any or all of these questions is yes, ask your travel agent to keep you informed of the best deals he can find. Remember this: don't wait for the same airfare prices you paid last year; you will pay more this summer. Simply look for the best of the "not-so-great deals".