Travel deals expected to improve this summer
by June 6, 2016 8:49 am 145 views
Americans are slated to see the best travel offers in years this summer, according to a new report from travel deals publisher Travelzoo (NASDAQ: TZOO). The company expects a decrease in travel options by 40% driven largely by cheaper airfares, low oil prices, a strong dollar and the impact of global events such as the Zika virus and instability in Europe.
On the airfares front, travelers are seeing the lowest flight prices in seven years with a decline of 12% from 2015 and over 20% from two years ago. Lower oil prices have decreased airline-operating costs, while major carriers have dropped fares to compete with budget carriers that are adding more routes.
The strong dollar means Americans can spend less to travel internationally. According to the National Trade and Tourism Office, U.S. outbound travel in January 2016 (the most recent data available) rose 9% year over year.
In January 2016, American travel to Canada increased 19% year over year. With the Canadian dollar worth about $0.76 in U.S. currency, Americans effectively get a 24% discount on hotel stays, meals and activities whenever visiting their neighbors to the north.
Travelzoo’s report notes that the strong dollar “is also translating into deals across the pond” with “more pressure on international destinations to lure U.S. travelers with deals as many Americans will travel domestically this summer.”
A company survey, conducted in April 2016, found 80% of respondents are forgoing plans to travel abroad and are instead considering destinations within the U.S. Hotels in cities like Paris and London are offering deals as a means to incentivize travelers to rethink their plans.
International events have also been a contributing factor with terror attacks in Paris, Brussels and Turkey impacting tourism, according to hotel consultancy MKG Hospitality, which reported that Paris occupancy rates in April were down 11% year over year, with a 30% vacancy rate.
Hotels and tourism boards are attempting to attract tourists with lower rates among other incentives, the Travelzoo statement notes.
Two examples: SNCF, the state railway operator out of France, is offering discounted tickets on its trains while hotels are offering discounts of up to 30%. Meanwhile, Turkey’s prices are down by more than 40% with 5-star hotel rooms available for less than $50 per night.
Travelzoo boasts more than 28 million members in Asia Pacific, Europe and North America and 25 offices worldwide. It partners with over 2,000 travel, entertainment and local companies each year.