Saturday, January 5, 2008

No Shocker Increase for Flying Blamed on Fuel Costs

Just a few days into 2008 the price of oil jumped the magical $100 a barrel number if only for a short time. Some experts predict that the next time that the price goes above $100 that it will probably stay there. So like the fuel surcharges that became the norm across the cruising industry over the last two months, the airlines have started to increase fairs by $10-$20 round trip. There were multiple fair increases in 2007 but none stayed permanent as the price of oil fluctuated. So look for either the same thing this year or worst case, the increases are going to be around for a while and may even grow. Unlike a fuel surcharge, building the cost into the price makes it harder for the average person to tell what is going really going on. This is going to have an impact on many cruisers that have already booked the cruise but have been waiting to get the best price they can on airfare. The increase can add $40-80 to a family of four's total cost of vacation which may not seem much to some, but with everything going up, the costs build up quickly.

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