Tuesday, July 15, 2008

Air Travel: Getting Grounded?

Will air travel cease to exist as we know it? I’m not one to latch onto fear-mongering, but the current trends in the airline industry are leading me to believe that the short-term future of flying is in peril for the average American.

What it comes down to is simple math… increased fuel prices = increased airfare = decreased passenger traffic = more and more flight cuts. USA Today found that the most popular vacation destinations in the US will be among the biggest air-service losers. “Many flights to Honolulu, Orlando, Las Vegas and other favorite vacation venues have vanished or will soon because cheap tickets bought by tourists don't cover the cost of getting there.”

Similarly, smaller regional jets don't carry enough people to pay for fuel on many routes. The Air Transport Association predicts that “100 cities this year could lose all commercial air service and that as many as 200 could lose service next year.”

And yet, consumers will still carry the burden of higher fuel costs. If a small-town traveler loses commercial air service, he will have to drive further – and thus spend more at the pump – to get to an airport. Or he may decide not to fly at all, especially if his travel is for leisure purposes.

I’m pretty sure I’m not the first person to follow this line of thinking. In fact, many hotels and other travel-related businesses are counting on the fact that travelers are sticking closer to home for vacations: they’re offering up deals specifically targeted to locals.

Florida seems to be leading the pack with this trend. The Inn on Fifth in Naples offers special room rates for Florida residents ($129/night for the first weekend in August vs. $150 for non-residents). In Fort Lauderdale, the Pelican Grand Beach Resort’s “Day at the Beach” program offers up a 10-hour mini-vacation starting at $99 – including an oceanfront room for six people, use of the pools and other resort facilities, and free ice cream for the kids.

Further up the East Coast, the Sheraton Myrtle Beach Convention Center Hotel is offering a 10% discount to residents of the Carolinas, although the rate is prepaid and nonrefundable.

Marketing to locals – whether the pitch constitutes a bargain or not – is a solid (dare I say, grounded) idea. Regardless of the direction the airlines are headed, there will always be travelers who want to save a little money and avoid the hassles of flying to get to their next vacation destination.

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