Contributor: David Bernard
For those of you doing some early shopping around for flights next year to Europe, you may have noticed some airfares are much lower than average lately. In fact, one search recently for us found flights from NYC to Amsterdam on KLM/Delta (a big name legacy carrier!) for as low as $480 round-trip, including taxes! That’s more than 50% off what a fare can usually go for! Many attribute this drastic change to the massive increase of new budget carriers into the USA/European market, including Norwegian Air Shuttle, WOW Air, and many more. Other carriers like Ryanair are still trying to get their toes in the markets too so at any rate this could really continue to saturate the market.
One other important factor to remember however is that like any market, and especially the air travel market, can change at any time without any notice. While these fares are highly enticing, they are in no way a promise not to return back to their normal ways soon. Upon further examination, these fares are for flights 3-5+ months away, which is usually farther in advance than the average traveler would probably book. Like any flight, these too of course still follow the supply and demand curve that airfare usually follows.
As many articles have been released lately about new low-cost carriers entering certain markets, it has made many people wonder how they are able to offer such low fares on such high-profile routes. The logic behind it is rather simple actually. For example, think about a flight between NYC and Los Angeles. It’s about 2500 miles and round-trip fares can be offered for between $300-$500. Airlines on this route have been able to standardize their market and operate at this price point. Now look at NYC and London, which is about 3400 miles apart. Flights there can be over $900 for a regular non-refundable economy ticket! If you think about it though, is the extra 900 miles really worth another $400+? Sure there are taxes, and customs fees, and the fact that it’s a bigger plane, but on already big aircraft passenger loads are increased too subsequently balancing it out.
No one knows how long these lower prices will last, but it certainly won’t be forever. Most of Europe seems to be covered when departing initially from the USA, so if you’ve been waiting for a good time to go on vacation abroad, now just might be your chance!
Have an experience with this fare drop? Comment and share below!