A recent analysis by Hopper reveals that budget airfares in 2024 have started significantly lower compared to the previous year. The forecast suggests that these prices will remain below last year’s level for the coming months, gradually approaching parity with 2023 during the spring. According to Hayley Berg, a renowned economist at Hopper, January presents the best opportunity for travelers to take advantage of low prices, as it will be the cheapest month to book travel until the fall shoulder season in September and October. However, fares are expected to rise in late spring as the spring break and summer travel periods heat up.
In January, roundtrip, budget domestic airfares averaged $253, representing a 6% decrease compared to January of the previous year and an 11% decrease from the previous month. Hopper defines budget fares as those that are lower than 90% of the fare quotes it tracks. The analysis projects that budget domestic fares will rise to an average of $276 in February, which would still be 8% lower than in February 2023. Following seasonal patterns, these fares are expected to continue increasing through May, reaching an average of $302 roundtrip. This figure would be just 1% less than the airfare recorded in May 2023.
International Airfare Trends
While budget airfares to Europe and Canada have seen a 5% increase year over year, fares to Africa have increased by 3%. Conversely, the Australia/New Zealand region has experienced a significant decrease of 22% in budget airfares compared to the previous year. Flights to Mexico and Central America have also seen a decrease of 10%, while South America, the Caribbean, and Asia have experienced declines of 4%, 3%, and 2% respectively.
In addition to affordable airfares, consumers can also find discounts on rental cars this month. Hopper’s analysis reveals that the nationwide daily average for budget rental cars is currently $38, representing a 4% decrease from the same period last year. For those planning overnight stays, hotels are averaging $214 per night, aligning with non-peak prices observed throughout 2023.
The Bottom Line
As Hopper’s analysis indicates, budget airfares in 2024 are promising for travelers looking to save money on their trips. The current lower prices, expected to continue until the spring, provide an excellent opportunity to book flights at significantly reduced rates. While domestic fares are projected to increase gradually, they are predicted to remain lower than in previous years. However, international airfares vary by region, with some experiencing notable increases and others witnessing significant decreases. Additionally, consumers can take advantage of discounted rental car rates and reasonably priced hotel accommodations, further enhancing the affordability of their travel experiences. By staying informed and leveraging these insights, travelers can navigate the current airfare landscape and plan budget-conscious trips in 2024.
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