Some U.S. places may be less expensive in 2024 than they are now, according to a new study. This is because airfare prices have been going up for years.
The 2024 travel report from Kayak, which came out in November, says that domestic price will drop 16% in 2024 compared to 2023. It will also cost less to rent a car (14% less) and book a hotel room (10%). Kayak looked at customer searches for trips and flights in 2023 and 2024 from the middle of March to the middle of September 2022.
Jake Bouvrie, Chief Economist at Kayak, told Nexstar in a statement, “Record-high prices last year and skyrocketing demand for international travel could be forcing airlines to cut domestic costs, which could save you even more on your domestic travel.” “Flight, hotel, and rental car prices are all going down in the United States, so if you’re on a tight budget, 2024 might be a great year to travel right here in the States.”
Flights within the United States were more than 12% less expensive in November than they were at the same time in 2022, according to the Bureau of Labor Statistics. Kayak found that this number is much smaller for some U.S. cities they are interested in, though.
The price dropped 39% from one year to the next, making Philadelphia the best deal. Next on the list is Fairbanks, Alaska, which has dropped 37%. Third on the list is Minneapolis, which has dropped 34%.
Cut down on flight costs
The future doesn’t look good for people who want to find cheap flights around the world. Kayak says that the cost of flying between countries has gone up 10% year over year. According to Kayak, the best time to book a flight is eight months in advance, when you can save an average of eight to eighteen percent.
The International Air Transport Association (IATA) raised its estimate for the net profit margin to 2.7%, or $25.7 billion, before the end of the month. The company also thinks that 4.7 billion people will fly in 2024, which is more than the 4.5 billion people who flew in 2019 before the pandemic. The IATA says growth will be harder than thought because borrowing money is pricey and growth space is limited.
“The industry’s strength is shown by the $25.7 billion net profit expected in 2024,” IATA’s Director General Willie Walsh said. “Compare that to the big losses of the last few years.” “People love to travel, which has helped airlines get back to where they were before the pandemic in terms of connectivity.” Wow, things are getting better so fast! However, it looks like the pandemic wiped out about four years of growth in flights. Once 2024 comes around, it looks like both passenger and cargo growth will return to more normal trends.