Airfare prices edge upward
August 26, 2010, 05:45 pm
With the economic downturn, many people had to put off their travel plans. Businesses, too, felt the need to tighten their spending and more closely watch their budgets. However, research shows that business trips are working their way upwards again.
According to the North America Business Travel Monitor, airfare prices have increased during the first half of the year and are getting closer to where they were before the recession hit. The data shows business has increased the most to "key business hubs" indicating that business travelers may be sustaining the higher fares.
"Airlines took many steps to position themselves for survival over the past 18 months to strengthen themselves and drive revenues and profitability," says Christa Degnan Manning of American Express Business Travel. "With travelers on the road again, air suppliers have gained ground in pricing power and the end of hotel rate drops is likely near."
An increase in the number of travelersand higher airfares are just a couple of indicators that economic conditions are changing. If the number of flights increases, more pilots will be needed along with other airline staff.
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