Tuesday, July 1, 2008

Rising Fuel Costs


Since it is such a hot topic for everyone, I thought kick off my new travel blog addressing the current spiralling fuel prices; how it is affecting the travel industry and some tips and suggestions I have to help you out with some of your future travel plans. As we all know through each visit we have to the gas pump, the price of oil is skyrocketing. As so much of our travel plans are reliant on gas consuming vehicles such as planes, coaches, buses, and cruise ships it has a huge impact on the costs of travel. Fuels surcharges have become the norm as a part of all airline tickets and cruise expenses – that we know and to a large degree understand.
However, as part the high fuel costs appear to be here to stay, it is going to have some impact on the way we travel for the upcoming winter season. Recently airlines have been announcing a reductions of their schedules for the fall and winter season by around 8 – 10% and laying off thousands of staff. Fuel surcharges continue to rise and the costs and availability of flights is changing drastically.


How does this impact you and what suggestions do I have for you to consider for your upcoming travel plans:

1. Most important – Book Your Airfare Well in Advance. With a decrease in capacity you are going to see a higher demand for the flights that are available and as a result higher airfare pricing. If you are hoping to get away for long weekends, Friday night departures or Sunday returns expect to see an especially high demand. This is particularly true if you plan on using Air Miles to pay for your tickets to join that cruise or tour – book as soon as possible.

2. Be Prepared for Schedule Changes – As the airlines are cutting their flight schedules there are going to be a lot of schedule changes as flights are reduced and merged together. This means it is incredibly important not to book a flight with a tight connection to a cruise or tour. Fly in the day before and enjoy your departure city with a nice relaxing start to your vacation.

3. Take Travel Insurance – I sell RBC Travel Insurance which with the proper package and coverage will protect you if you are doing connecting flights on different airlines, or flying in to meet a cruise or tour and you end up having a schedule change. For example, if you don’t have insurance are flying to London on a charter airline and then connecting with another airline to Barcelona and travelling on 2 separate tickets - if your charter schedule is changed and you miss your connecting flight, you will be required to pay the change fee and difference in fare to rebook your connecting flight without compensation from the charter airline. However, if you have the proper travel insurance you will have coverage to pay for the cost of changing your connecting flight.

4. Watch What Airline You Travel With – In the past few months there have been many smaller airlines in the US go bankrupt. It is fully expected that one of the big American carriers will also go bankrupt due to the increased costs and a market that can not support all the current carriers. It is also expected that several of the European discount carriers are not going to be able to ride out the current economic conditions. Remember if they are selling at prices that are too good to be true – it just may be that! If the airlines are not making money they are not going to last…remember Royal Airlines $99 return flights to Florida, or Jetsgo with its $1 seat sales. We all love the prices when we are travelling on them, but an airline can’t survive on fares like that. I will do my best to book you on airlines that I know are doing well as nobody needs to have their vacation caught in the middle of a bankruptcy filing.

5. Plan your Cruises Now – For people taking a cruise this winter and needing airfare to Florida or San Juan, start thinking about where and when you would like to go now. Remember for cruises you can put down a small deposit and to confirm your space and then we can get you the best deal for the flights. Flights in and out of San Juan with American Airlines have been reduced considerably so if you are looking to do a Southern Caribbean Cruise this winter let’s start working on that soon!

6. Watch your Luggage Weight - Most airlines have recently changed their luggage allowance. Some now even charging if you want to check any luggage at all. Make sure you are fully aware of the luggage allowances for your flight and try not to over pack or you will get hit with excess baggage charges at check-in. Most airlines are even weighing your carry on bags now!

www.carlhenderson.ca