It’s as simple as supply and demand.

As more people get vaccinated and there is pent-up demand for travel, the number of travelers increases.


As a result, airline ticket and hotel prices are also rising.

Slowly but surely, travel costs are rising to the point where CNBC notes that travelers shouldn’t count on $30 airfares much longer.

The percentage of positive tests for COVID-19 is down, and President Joe Biden met his goal of 100 vaccinations in 100 days 42 days early, building confidence that travel will resume.

Current trend

CNBC noted that search site Kayak reported a 27% increase in summer travel searches in just a few weeks, and airfares for the top 100 U.S. destinations were up 7% from the previous month.

Airfares for domestic flights are rising. If discounts can still be found, they no longer fall into the lap of consumers, said Jamie Baker, an aviation analyst at JP Morgan. Lower rates require more and more hunting, and many consumers who have been tied up for a year are probably not ready.

Travel consultants predicted that pent-up demand would lead to higher prices. The cheapest domestic holiday fares, including special rates airlines send to your mailbox, were the 15th. March at $59.48, still down 26% from the same week in 2019. However, this increase should be brushed aside fairly quickly as interest rates rose 6% last week. If it continues at this rate, ad rates will return to 2019 levels.

Airline executives said Monday that bookings will pick up in March and continue through the summer, but that U.S. carriers will lose an average of $150 million a day this quarter, according to Airlines for America. But if growth continues, both United Airlines and Delta Air Lines will finally stop burning money in the spring.

Unless there is a setback, we are on the mend and can put the days of talking about burned money, layoffs and the like in the rearview mirror, CEO Scott Kirby said Tuesday on CNBC’s Squawk Box.

The average occupancy rate of US hotels this month through the 13th. In March, it was more than 51%, the highest level in more than a year, according to hotel data analytics firm STR. Hot resorts like Miami have nearly 70% occupancy with an average price of $228 per night, the highest price since February 2020.

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