One comment we constantly see in these boards is complaints about the high cost of airfare.
Truth is, airfares (and associated fees) are near historic lows. Even with bag fees, last year's average fare was 40 percent lower than it was in 1980. So says the American Enterprise Institute.
Look at this chart:
Pay particular attention to the blue line. That's how much the average ticket cost (with fees) each year. Yes, we've had a small bump the past couple years as we emerge from the artificially low prices brought about by the demand collapse of 2008 and as we deal with rising global oil prices (oil increased 29% in 2010 and another 20% in 2011). Still, it's a lot cheaper than the golden days of the 1980s and 1990s so many uninformed bellyachers misremember.
Also look at this chart:
That's how much the typical passenger paid to fly a mile for the years indicated. Again, the trend has been obvious.
By any meaningful historical measure, airfares of the past few years are as good as they've been since President Carter signed the deregulation act in 1978.
Next time you're in the market for an airline ticket to Vegas, think for a bit about how much less expensive air travel is today compared to what Americans used to pay.
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Truth is, airfares (and associated fees) are near historic lows. Even with bag fees, last year's average fare was 40 percent lower than it was in 1980. So says the American Enterprise Institute.
Look at this chart:
Pay particular attention to the blue line. That's how much the average ticket cost (with fees) each year. Yes, we've had a small bump the past couple years as we emerge from the artificially low prices brought about by the demand collapse of 2008 and as we deal with rising global oil prices (oil increased 29% in 2010 and another 20% in 2011). Still, it's a lot cheaper than the golden days of the 1980s and 1990s so many uninformed bellyachers misremember.
Also look at this chart:
That's how much the typical passenger paid to fly a mile for the years indicated. Again, the trend has been obvious.
By any meaningful historical measure, airfares of the past few years are as good as they've been since President Carter signed the deregulation act in 1978.
Next time you're in the market for an airline ticket to Vegas, think for a bit about how much less expensive air travel is today compared to what Americans used to pay.
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Quote
Originally posted by: stungazed
Back in the "old days" flying was "glamorous", therefore more expensive. It kept the riff raff out.
Yeah, we should go back to the olden days, when we didn't have to travel with the inferior people.
Here you go sport, that'll be an extra $160 in 2011 dollars, even if you don't want it!
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Originally posted by: stungazed
Back in the "old days" flying was "glamorous", therefore more expensive. It kept the riff raff out.
Yeah, we should go back to the olden days, when we didn't have to travel with the inferior people.
QuoteHa, you don't remember airline economics very well. The airlines DEMANDED deregulation because they couldn't make money with the federal government approving fares.
Originally posted by: stungazed
Airlines also used to make money back then too. Now all but a few of them are money pits.
QuoteNo extra cost? You were paying 40% more per ticket for two thin slices of turkey and a cold roll!
Originally posted by: stungazed
Things were far classier on flights back then, you got a HOT meal at NO extra cost and were treated with a lot more respect back then.
Here you go sport, that'll be an extra $160 in 2011 dollars, even if you don't want it!
QuoteYou are right that planes are more crowded now, no question. Airlines have become far more efficient. The charts I posted incorporate bag fees.
Originally posted by: stungazed
Planes are more crammed than ever and even though baggage fees are included in these charts, bags used to fly for free, and they were allowed to be much heavier than they are now.
QuoteBut the price of a ticket has come down so much that, even with bag fees, flying now is a huge bargain compared to the olden days.
Originally posted by: stungazed
It's pretty sad that in some cases baggage fees can almost double the cost of a flight.
QuoteAgain, the charts include bag and other nuisance fees that airlines now impose.
Originally posted by: stungazed
This being similar to resort fees at some of the lower tier hotels in Vegas (Think Stations when they run 50% off regular rates dropping prices down to under $20 and then tack on a $14.99 for a resort fee)
QuoteYou can still buy a first class ticket and enjoy what you once enjoyed in coach.
Originally posted by: stungazed
I won't argue the fact that flying is still a cheap way to get from point A to point B and as the charts show, it's actually cheaper now than back in the 70's and 80's but on the same note, look at what we've given up to get those lower fares. All in all with the cut backs that have been made, the service that has deteriorated, and everything else that has been downgraded, are we really paying less or is it just a wash??
QuoteScroll up, the charts (and a link to the analysis) are right there.
Originally posted by: stungazed
I'd also like to see some charts just dating back 10-15 years, because I know for a fact that I'm paying double for a round trip flight now, compared to back in the mid to late 90's and even 2000's, and I got a whole lot more for that fare than I do now.
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Quote
Originally posted by: gruberbox
Fares in the 70's and 80's were extraordinarily high because the airline industry was heavily regulated, with the government licensing and assigning routes and essentially setting fares. It was 80's that airlines were deregulated, and you started getting all kinds of People's Express and other start ups which lowered fares accross the board. In order to compete, the airlines had to cut fares and eventually service(in-flight meals etc.).
Correct. Prior to deregulation, the airlines could not compete on price, they could only compete on service. That's why we had in-flight piano lounges.
Service has certainly degraded since then. Customers want low fares, not chateaubriand.
The airlines listen closely to customers, and have produced the low fares we demand. For better or for worse, that's the simple truth, as the charts above relate.
Service has certainly degraded since then. Customers want low fares, not chateaubriand.
The airlines listen closely to customers, and have produced the low fares we demand. For better or for worse, that's the simple truth, as the charts above relate.
