Rumors are often false, but the rumblings about big changes in airfares late in 2004 proved to be on target. It appears customers of the major airlines will see big changes in the way they purchase domestic tickets in the next few years.
Delta fired the first shot, and American followed suit the next day. The other majors matched Delta's new fares in some markets almost immediately. Such duplication is standard in the airfare business. Refusing to conform, especially in this economic climate, could ground your airline forever.
The question for travelers: Will these new fare structures be of great benefit? Perhaps more to the point, will they change the way budget travelers book their trips?
Before we answer those questions, here's what you need to know:
Delta's SimpliFares eliminate the "Saturday night stay" requirement for lower fares. Now, any non-refundable ticket requires a simple overnight stay. No one-way coach-class fare is higher than $499 USD and no one-way first-class fare higher than $599 USD.
Many fares will fall 50%. This does not mean your bargain fare from last year's trip to Grandma's will be half price this year. It means on the highest last-minute fares, there are likely to be big cuts.
American's new domestic fares do not eliminate all Saturday night stay requirements, as does Delta. But roundtrip discounts are now available on bookings less than 14 days prior to departure. American's cap on one-way domestic coach fares is now $699, which is $200 more than Delta's cap.
How can consumers be unhappy with these changes? Any lowering of the outrageous costs for last-minute travel is wonderful. The streamlining of these requirements might be equally welcome.
How are budget carriers responding? Click "next" and read what these changes could mean for your next itinerary.
