Economic News
US flights Cost Over 50% More
The latest current figures from Adobe demonstrate a considerable rise in the number of flights within the United States.
The most current data from Adobe Analytics (ADBE) Report indicate that the prices of domestic flight tickets have climbed by an astounding 47 percent since January 2022 and by an astounding 30 percent since 2019.
In the meantime, domestic travel expenses for the month of May totaled $8.3 billion for Americans. This represents a 6.2 percent increase as compared to the previous month’s total of $7.8 billion.
Because summer is the peak travel season, airline ticket costs are typically higher during the summer than they are during other times of the year.
However, because of record-high inflation and greater agitation among people as they work to recover from the virus, this season is an exceptionally pricey time to go to a location that is a significant distance away.
As prices continue to rise, consumers’ purchasing power and overall travel numbers will inevitably suffer. Even though total spending went up, the number of reservations made between April and May went down by 2.3 percent.
Bookings for travel within the United States are also down 2% year on year compared to 2019.
Customers are spending more money overall, which is the primary driver behind the 11 percent increase in total spending.
According to Vivek Pandya, the lead analyst at Adobe Digital Insights, “We are beginning to see a more noteworthy shift from commodities to services,” as evidenced by the fact that consumers spent over a half a billion dollars more on domestic flights in May than they did in April.
“Even if some customers have been able to stomach the higher costs, particularly for those who delayed their travel plans during the pandemic, the fall in bookings shows that some are rethinking their appetite for going on a plane.”
The data provided by Adobe did not contain any information pertaining to foreign flights; nonetheless, if recent patterns are to be believed, they are not getting any less expensive.
It would be nice to visit a new place.
Will There Be a Fall in Prices?
Between January and May of this year, American consumers spent $37.1 billion online on domestic flights.
For the same five months in 2021, that sum was only $19.2 billion.
The current state of affairs is the result of a number of interrelated factors, including the fact that people are beginning to recover financialy from the pandemic, which has led to an increase in demand for airline tickets despite the fact that high prices are causing many people to forgo flying or reduce their spending in other areas.
The unfortunate news is that inflation is not only affecting the cost of travel; rather, it is coming to look like an unavoidable component of everyday living in all domains.
The annual rate of inflation for consumers reached a new high of 8.1% in May, with greater rates being seen in categories such as energy, food, and shelter.
The price of gasoline is around twice what it was this time last year, and as of June 14, it was $5.016 per gallon. Therefore, taking a road trip is not likely to satisfy that summertime yearning for adventure.
According to a recent study conducted by the market analytics firm Jungle Scout, seventy percent of American consumers have recently cut back on their “fun” and “impulse buys” in order to compensate for the skyrocketing cost of gasoline.
On the other hand, as an illustration of what some people mean when they talk of the “two Americas,” many people are going on vacations, while others are cutting back on their spending in an effort to combat inflation before it affects purchasing essential goods.
Domestic destinations that have seen an increase in tourists this year include Bozeman, Montana, Orlando, Florida, and Kailua-Kona, Hawaii.
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