Leisure Travel Is Poised To Get Cheaper This Winter

With the budgets of Americans being pinched from nearly every direction these days, there’s good news in at least one category of spending: Travel.

The CEO of Canada’s WestJet Airlines is predicting that airfare to many popular leisure destinations will be cheaper this winter and for summer 2024 travel as well.

Why the drop in prices? More capacity.

Airlines have been busy adding capacity WestJet CEO Alexis von Hoensbroech told Reuters earlier this week.

"Last year, our observation was that there was probably more demand than the industry could serve. That's why we also saw pricing going up quite substantially," von Hoensbroech told the news outlet during interview at the Air Transport Association of Canada (ATAC) conference.

"This winter is going to be different. I think this winter we'll have a better supply-to-demand balance, which will give more affordability to Canadians," von Hoensbroech added.

This commentary comes after the sticker shock hordes of travelers experienced during summer 2023 as they sought to sow their post-pandemic travel itch.

While demand for travel this winter continues to be strong, Hoensbroech also told Reuters he sees some “trading down” happening now as well—meaning travelers are opting for more affordable vacations instead of the high-end spending that has been taking place.

Among the destinations where the airline executive predicts prices will become more budget-friendly for summer 2024 is the perennially popular Europe. This again, he attributed to more airline capacity in the coming year.

"I would expect next summer there would be a different demand-to-supply equation on transatlantic," von Hoensbroech said.

Meanwhile, WestJet itself is upping capacity, according to Reuters. The airline has ordered 48 Boeing MAX 10 aircraft. The airline hopes to receive some of those planes in September 2024.

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