In the 12 months between October 2014 and October 2015, global economy airline ticket prices dropped 8% on average. The drop for domestic travel in the United States was 6%, while fares for flights within Europe fell 16% year over year. And the trend toward lower fares is expected to continue, at least into the first few months of 2016.
Ticket prices dropped the most in the year-over-year comparisons during the months of July and August, and some of the cheapest air fares to be found next year will be for travel within Europe. For example, an economy ticket for travel from Sweden to Berlin carries an estimated average cost of $216 in 2016, while an economy flight from Brussels to Rome is expected to average around $229.
The data were reported on Thursday by Expedia and Airlines Reporting Corp.
The data also suggested that booking a bundled flight, hotel and car rental can boost travelers’ savings. Such a bundle saved an average of $226, but savings of up to $568 were found across different destinations. Bundle savings for resort destinations can range as high as $1,100.
And the best day to book that cheap ticket? Previous versions of this report have indicated that the lowest-priced fares were available on Tuesday. This year, however, the data points to Saturday and Sunday as the days when average ticket prices are lowest.
The data also suggest that buying a ticket 57 days before the travel date yields a 10% average savings on a flight within the United States. For a trip from North America to Europe, booking a ticket 176 days in advance of travel saves 11%, and travelers can save 13% on a trip from North America to Asia-Pacific by booking 160 days in advance.
The report noted three factors that can have a big impact on ticket prices:
- Competition. If one carrier lowers its price, competitors tend to follow.
- Oil prices. Low fuel prices enable carriers to continue to make a profit even as fares fall.
- World events. This one should be obvious.
The full report, Preparing for Takeoff: Air Travel Outlook for 2016, is available from Expedia.
Find a Qualified Financial Advisor (Sponsor)
Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to 3 fiduciary financial advisors in your area in 5 minutes. Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests. If you’re ready to be matched with local advisors that can help you achieve your financial goals, get started now.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
