Skip navigation

Current events offer hints about year in travel

Airline mergers just one variable that will hit travelers in pocketbook

Image: Busy airport
Air travelers can expect longer lines and fuller planes in 2007, columnist Rob Lovitt writes.
David Zalubowski / AP
Slideshow
Image: Reflection of Autumn Trees in Vltava River
  Celebrating fall
Around the world, autumn paints the landscape with bright, bold colors.

more photos

Slideshow
Las Vegas Strip Exteriors
  Viva Las Vegas!
Sin City is a major entertainment center and business travel destination, known for its carefully cultivated image, gambling and nightlife.

more photos

  
  Kid chef cooks holiday treats
Nov. 27: A 13-year-old cook teaches the TODAY hosts how to whip up a turkey risotto that is perfect for the holidays.

  The last roll
Nov. 27: Parsons, Kansas, is place that still processes Kodachrome color film, but Kodak has stopped making it, leaving this little town pondering a big question. NBC’s Bob Dotson reports.

By Rob Lovitt
Travel writer
msnbc.com contributor
updated 3:40 p.m. ET Jan. 10, 2007

Rob Lovitt
Travel writer

E-mail
For many travelers, 2006 couldn't end fast enough. For some it was the eye-popping price at the pump; for others, the groan-inducing breakdowns at baggage claim. Either way, it was clearly a year of long lines and short tempers.

So, what does 2007 hold in store? Good question, and while I wouldn’t be so presumptuous as to propose an all-encompassing, one-size-fits-all answer, I think recent events offer some interesting hints about travel in the coming months. If nothing else, they’re worth considering before you book your next flight, rent another car or reserve a hotel room.

In the air
Think 2006 was a bumpy year for the airline business? Get ready for some more turbulence. Will US Airways be successful in its takeover bid for Delta? After US Air boosted its offering price, it's anybody's guess. Will other mergers be proposed and ultimately put together? They have and they will. And will the end result be greater efficiency, better service and lower fares? I wouldn’t count on it.

Story continues below ↓
advertisement | your ad here

After five years of staggering losses, the U.S. airline industry has slashed fleets, jobs, services and anything else it could get its hands on to combat overcapacity, unsustainable pricing and sky-high fuel costs. And with little else to cut, mergers and buyouts probably start looking pretty attractive, especially since the industry is actually flirting with the prospect of profitability.

But I just don’t see them passing any savings on to the rest of us. Sure, in some cases, discount airlines may expand into new markets, putting a ceiling on potential fare increases. In others, more direct flights and increasingly efficient aircraft will counter tangled route maps and rising fuel costs. And yet, spot bargains aside, I just can’t see those factors outweighing the one-two punch of strong demand and fewer seats.

Or, to put it more bluntly, planes will continue to fly full and fares will go up in 2007. The American Express Global Business Travel Forecast pegs the increase in domestic economy-class fares at 3-6 percent for next year.

Most of us, though, will fly anyway, even if it means paying for pillows and cattle-car seating. We may get lucky – say, when a discount airline opens a new route and sparks a short-term fare war – but, for the most part, we’ll pony up for the full-fare ticket. If that’s the case, it’s not too early to start planning that spring fling or summer vacation right now.


Sponsored links

Resource guide