Why 2016 Is the Most Affordable Summer for Travel in Years
The unofficial start of summer travel season is here, and data suggests it could be one of the most budget-friendly summers in years. Thanks to low oil prices, a strong U.S. dollar, falling airfares, and global events like the Zika virus and European instability, Americans could save up to 40% on summer vacations compared to last year.
Travelers are enjoying the lowest flight prices in seven years—down 12% from 2015 and over 20% from 2014. Reduced oil prices have cut airline costs, while major carriers slash fares to compete with expanding budget airlines.
A robust dollar stretches U.S. travelers' budgets abroad. The National Trade and Tourism Office reports U.S. outbound travel rose 9% year-over-year in January 2016.
Terror incidents in Paris, Brussels, and Turkey have softened tourism demand. MKG Hospitality noted Paris hotel occupancy fell 11% year-over-year in April 2016, with 30% vacancy rates. In response, France's SNCF offers discounted train tickets, hotels up to 30% off, and Turkey sees 5-star rooms under US$50—prices down over 40%.
Zika concerns have shifted plans, with a February 2016 Travelzoo poll showing 30% avoiding affected areas. Hotels, resorts, packagers, and cruises counter with deep discounts, yielding exceptional summer deals to upscale spots in Cancun, Vieques Island, and St. Vincent & Grenadines.
Cheaper airfares deliver over 35% savings on Asia and Australia trips. China packages are at multi-year lows, like an eight-night escorted tour with breakfast and air for under $850.
Here's why:
1. Lower Airfares
Travelers are enjoying the lowest flight prices in seven years—down 12% from 2015 and over 20% from 2014. Reduced oil prices have cut airline costs, while major carriers slash fares to compete with expanding budget airlines.
Check Today's Best Fares for the cheapest days to fly over the next 90 days.
2. Strong Dollar Boosts International Travel
A robust dollar stretches U.S. travelers' budgets abroad. The National Trade and Tourism Office reports U.S. outbound travel rose 9% year-over-year in January 2016.
Canada saw a 19% surge in American visitors, with the Canadian dollar at US$0.76 offering a 24% effective discount on hotels, meals, and activities.
Europe is responding too: A Travelzoo survey in early April 2016 found 80% of respondents opting for domestic trips, prompting hotels in Paris and London to roll out enticing deals.
3. Europe Offers More Deals Amid Challenges
Terror incidents in Paris, Brussels, and Turkey have softened tourism demand. MKG Hospitality noted Paris hotel occupancy fell 11% year-over-year in April 2016, with 30% vacancy rates. In response, France's SNCF offers discounted train tickets, hotels up to 30% off, and Turkey sees 5-star rooms under US$50—prices down over 40%.
4. Greater Availability and Discounts in Caribbean and Mexico
Zika concerns have shifted plans, with a February 2016 Travelzoo poll showing 30% avoiding affected areas. Hotels, resorts, packagers, and cruises counter with deep discounts, yielding exceptional summer deals to upscale spots in Cancun, Vieques Island, and St. Vincent & Grenadines.
5. Asia and Australia See Lower Prices and Rising Demand
Cheaper airfares deliver over 35% savings on Asia and Australia trips. China packages are at multi-year lows, like an eight-night escorted tour with breakfast and air for under $850.
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