What the Latest Consumer Price Index Means for the Travel Industry

Image: Money makes the aviation industry move. (Photo Credit: Ivan Kmit / Adobe Stock)
Image: Money makes the aviation industry move. (Photo Credit: Ivan Kmit / Adobe Stock)
Mia Taylor
by Mia Taylor
Last updated: 2:45 PM ET, Wed September 11, 2024

When it comes to airfare pricing trends, there’s good news and there’s bad news.

According to the just-released August 2024 Consumer Price Index data from the Federal Reserve Bank of St. Louis, average airfare prices have ticked up 3.8 percent since July.

That’s the most substantial month-over-month increase in nearly two years. But according to the experts at Going, there’s a silver lining.

Even though prices are increasing, they continue to be cheaper overall compared to past years. For instance, compared to August 2023, flight prices are still down 1.3 percent, per Going.

And compared to June 2022 (which as you may recall was when airfare was at its peak in a post-pandemic world) current prices are 21 percent lower.

Looking even further back still, at February 2020 (the last ‘normal’ month prior to the pandemic), ticket prices today are 7.5 percent cheaper.

In other words, don’t panic about today’s news that prices have trended upward. Because consumers are still saving money.

As the experts at Going helpfully pointed out a “slight upward inch doesn't erase the overall downward trend” we’re seeing when it comes to the cost of a flight.

"Airfare in 2024 has largely moderated, meaning we are seeing rise and falls similar to what we saw pre-pandemic due to seasonality, demand, and other factors," Going spokesperson Katy Nastro told TravelPulse. "An uptick from the August report doesn't necessarily mean airfare is trending upward, especially since it's still cheaper than it was pre-pandemic."

Broader travel industry pricing trends

The CPI data surrounding airfare prices was part of a larger release of information surrounding consumer prices in general. When looked at from a broader lens, there's more that can be gleaned about travel-related costs.

In a statement issued today following the release of the CPI report, the U.S. Travel Association said the Travel Price Index (TPI) is showing "positive signals" for travelers.

“With overall inflation cooling to its lowest level since 2021 and gas prices down significantly, travelers have reason to be excited about their plans, even as we conclude one of the biggest summer travel seasons ever," U.S. Travel Association Vice President of Research Josh Friedlander said in the statement.

"Prices of travel-related goods and services have grown less than those for the economy broadly, both annually and compared with prior to the pandemic. U.S. Travel’s Travel Price Index grew just 0.9% annually in August, compared with 2.5% for the broader CPI," added Friedlander.

Airfare deals

Returning to the topic of airfare prices specifically, Going says there are some tempting deals to be had for shoulder season this year.

Here’s a sample:

  • $370 NYC to London, UK
  • $374 DC to Barcelona, Spain
  • $497 Chicago to Rio de Janiero, Brazi
  • $583 Dallas to Zagreb, Croatia ~40% savings (which is stunning come autumn with all the foliage)


But let's not forget, the Thanksgiving travel frenzy is just around the corner, so if you want to score a deal, act fast. And to save even more money, brush up on the best day of the week to book a flight.
 


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Mia Taylor

Mia Taylor

Senior Editor

Mia Taylor is an award-winning journalist who has two decades of experience. Most recently she worked as a staff writer for America's largest digital publisher DotdashMeredith, where she contributed stories on a daily basis to four of the company's most iconic brands - Parents,Real Simple, Better Homes & Gardens, and Health. Her work has also appeared in Travel + Leisure, The Boston Globe, The San Diego UnionTribune, Westways Magazine, Fortune, and more.

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