Indeed, there is increasing evidence that oil prices, and therefore prices for flight tickets, will rise again this year, writes Advito in the 'Industry Forecast'. The good news is that the demand for air travel is increasing.
Flight ticket prices uncertain
Uncertainty about Iran's nuclear plans and unrest in Sudan are fueling unrest over oil prices. At best, the price per barrel of oil will hover around US$115, at worst it will rise to US$200, which can have a major impact on airline ticket prices. In addition, the IATA (International Air Transport Association) expects an increase in the demand for airline tickets, while more and more airlines are reducing their capacity. This can also lead to a price increase.
Forecasting becomes more difficult
“The economically turbulent times make it more difficult than usual to make precise forecasts. The recession that could hit key markets, consumer confidence in free fall, and a possible new credit crunch could lead to a significant drop in demand for journey and all that goes with it. If that happens, airlines will find it much more difficult to implement the expected price increases and prices could fall sharply again.
Travel managers should bear in mind that no form of stability is currently guaranteed. Airlines will also become increasingly creative with ancillary fees. And the extra costs for fuel and payment by credit card are also passed on to customers by the airlines,” says Jeroen Hurkmans, Vice President at Advito.
Read the full update here Industry Forecast
Advito can write what he wants, but there are also other voices, which assume a fall in the oil price in the short term. See http://www.bnr.nl/topic/beurs/822328-1206/shell-olieprijzen-blijven-tot-volgend-jaar-dalen
And what's good about the news that the demand for air travel is increasing? Doesn't that just make it more expensive?
French,
Your last sentence is the oldest wisdom of trade: the law of supply and demand.
The fact that demand is increasing here is indeed very bad for our cut.
We have to pay for the oil with dollars and we have to buy it with our worthless euros.
More and more of the latter must be brought to the table.
In addition, The Hague also needs more and more money, e.g. for Europe, etc.
It can already be seen that the demand for air travel is declining.
This is because our governments are taking too few measures to boost the economy.
And because our purchasing power decreases (e.g. VAT to 21% etc)