Why summer travel prices may spike due to the ongoing war in Iran
SOUTH BEND, Ind. -- Heading into the summer months, the war in Iran could have some big impacts on the typically busy US travel season. This is a tricky situation because we are really heading into the summer months blind for what the continuing impacts will be come May. Through many reliable sources of media, there are many conflicting takes on this issue.
Forbes reports that "Executives of major airlines agreed travel demand remained robust enough to offset much of the huge spike in jet fuel prices caused by the war in Iran." Meanwhile, CNN spoke with Rob Britton, an Adjunct professor of Marketing at Georgetown's McDonough School of Business who says, “If fuel prices remain high, fares will rise. Theres no mystery there so just doing some simple math one might expect ticket prices to rise almost proportionately.”
A local travel agent says regardless of the ongoing war in the Middle East, pricing for airfare all comes down to supply and demand. Michele Boyd, Owner of Signal Travel and Tours Inc. says, “If the fare is good, and something that you can do, get it done, because it just, you know, it may not, that fare could change and it could go up, because as supply increases, the demand increases, then the price goes up.”
Michele Boyd, Owner of Signal Travel and Tours Inc. in Niles Michigan tells ABC57's Sidney Moore that you need to really look at all the costs before deciding whether to travel by car or plane. “You're going to have hotel expenses for at least one night, possibly more. So, when you add all of that up together and then look at the airfare, and you be there in a few hours, what is the difference? You have to look at the whole picture, not just, my airfare is $500 I can drive it for 100 but you have to add in all the expenses.”
If you're driving by car this summer, it's hard to tell where the gas prices will be at that point, but if you're choosing to fly, booking in advance may be your best option. United Airlines CEO tells CNN that the crude oil issues we are currently seeing will possibly be felt during quarter two which starts next month and continues to the end of June. So, with all these factors, if you see an airfare price tag that's in your budget, you may want to book now!