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    How and Why Low Fuel Prices Aren't Affecting Flight Costs

    Consumers in the US have seen a dramatic drop in the price of gasoline over the past year, leaving many to expect fuel-dependent travel providers such as airlines to pass along saving with cheaper fares.


    Jan 22, 2015

    The advent of 2015 has seen unprecedented drops in the price of crude oil, an uncommon but welcomed change for a commodity that has otherwise been steadily rising in value for more than a decade. It seems not so long ago that it was commonplace to see price boards outside of gas stations displaying figures of up to (and sometimes beyond) $4 per gallon, but overproduction and miscalculation of demand has brought the average cost of fuel in the US down to around $2.06 per gallon as of January 9, 2015. The dip in consumer prices is the result of an almost 60% decrease in the valuation of crude oil per barrel that's been tumbling since mid-summer of 2014, and the landslide in fuel premiums has been reflected in the way US citizens are traveling as of late.


    Balmy Beach Destinations on the Rise...

    Some of the most dramatic changes in travel rates have occurred amongst warmer tropical locations like sunny Cancun, Mexico. The Central American mecca of tourism reported record figures for visitation rates in 2014 and the Cancun Convention & Visitors Bureau predicts continued growth for the year to come. The positive upswing is largely attributed to cheap flights and additional routes added by carries such as Southwest, Alaska and Frontier Airlines as well as new attractions and activities offered among the developing tourism industry. Following a reconstruction effort akin to that seen in Cabo San Lucas after Hurricane Odile many resorts and hotels in Cancun have launched into action, renovating and expanding their facilities to accommodate for the increasing number of tourists. Palace Resorts, a luxury travel provider featuring all-inclusive resorts throughout Mexico, has had a particularly good year marking the most significant growth rates in its history.  


    ...Among Other European Destinations

    European travel outlets have seen increased demand in 2014 as well, with a promise of continued growth spurned on by the Euro's recent devaluation against the US dollar. The Eurozone currency sunk to an eleven-year low this month, hitting its weakest point in over ten years, and travelers from the US are finding that their dollar can now go much farther on a trip to France or visit to Germany. According to Harry Dalgaard, the president of prolific tour operator Avanti Destinations, while popular destinations like Italy and the UK remained top sellers, a number of lesser known tourist locations such as Prague in the Czech Republic and the country of Poland are bearing surprising jumps in visitation rates, mostly due to the addition of new non-stop flights bound for Eastern Europe. Dalgaard is quoted calling the increased value of the dollar "a terrific impetus for people to travel to Europe", but a crucial element in determining travel clearly still remains in the hands of the airlines.


    When Will Airlines Reflect Improved Fuel Prices in Flight Ticket Costs?

    Fuel makes for roughly 30% of the costs incurred to airlines for operating a flight, so one would expect cheaper gas prices to positively influence the price of a ticket. The unfortunate reality of the situation, though, is that airlines have and plan to continue charging whatever they can despite fluctuations in their average expenses. "Ticket prices are market-driven," said Peter Davies, a former flight industry CEO, "not cost-driven." As Americans continue to travel abroad in increasingly greater numbers, a high demand for airborne transportation will keep the price of a boarding pass stable, at least for now. So while flight rates don't seem to be following in suit with the rest of the travel industry in offering lower prices, the value of and demand for a trip abroad has increased as now seems a better time than ever to take an exciting international vacation.

    While we can't control the cost of flying, Auto Europe is dedicated to helping you get the most out of your next European holiday with guaranteed best rates on everything from rental cars to airport transfer services. Let us help you find the most economical options to suit your planned endeavor and take advantage of these recent economic edges on an ideal trip that can cost you much less than you may expect! Browse our rates online or call one of our helpful reservation agents anytime, 24/7 and toll-free at 1-888-223-5555 to kick off your next exciting excursion with confidence backed by Auto Europe's unparalleled customer service and experience.


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