The revelers go to the beach to celebrate the spring break, against the backdrop of the coronavirus disease outbreak (COVID-19) in Miami Beach, Florida, USA, March 6, 2021.
Marco Bello | Reuters
Are you thinking of finally taking that vacation? You’re not alone.
Millions of Americans, many co-opted for a year, set out on their way to heaven as more people are vaccinated against Covid-19. President Joe Biden said last week that all American adults will be eligible for a vaccine by May.
As more people are confident that the Covid-19 threat is fading, it is becoming increasingly difficult to find low fares, some in double figures, that airlines offered when they were more desperate to fill planes. . Hotel rates are also rising.
Kayak travel search site said summer travel searches have risen 27% each week since Biden’s announcement and said fares for the top 100 most sought after destinations in the U.S. have risen 7% from one month to the next.
“Domestic fares are on the rise. Although discounts can still be found, they are no longer falling on consumer shifts,” said Jamie Baker, an analyst at JP Morgan. “Reduced rates require more and more hunting, and for many consumers who have been imprisoned for a year, they are probably out of reach.”
The cheapest domestic entertainment fares, which include those promotional fares that airlines send in their inbox, were $ 59.48 as of March 15, 26% lower than a similar week in 2019, but up more than 6 percent a week, according to Harrell Associates, a airline-tracking firm. The average leisure rates were almost 187 USD, almost 5% per week and almost 9% higher than a similar point in 2019.
The airline’s executives said on Monday that the bookings will be lifted in March and will last until the summer. U.S. airlines are on the verge of losing an average of $ 150 million a day this quarter, according to Airlines for America, but CEOs of United Airlines and Delta Air Lines have said the growth will finally reduce money burning this spring. . JetBlue is calling unpaid flight attendants a month earlier due to stronger-than-expected demand.
“As long as there’s no obstacle, we’re on the road to recovery and we can put those days of talking about cash burns, layoffs and things like that largely in the rearview mirror,” CEO Scott Kirby told Squawk. Box ”on CNBC on Tuesday.
Hotel occupancy in the US this month through March 13 is averaging more than 51 percent, the highest in more than a year, according to hotel data analytics firm STR. In hot vacation spots like Miami, occupancy is close. 70%, with average rates of $ 228 per night, the highest prices since February 2020.
Jamila Ross, owner and founder of The Cooper Door B&B in Miami, said she cut rates in January and February by more than 40 percent to $ 100 a night, but has since managed to raise them to 120 USD.
Covid was particularly devastating for her hotel because it was so dependent on the cruise industry due to its proximity to the port.
She said the hotel is now about 70 percent full, up from 40 percent last month, although it retains an inventory because of Covid.
“We want to be a responsible brand,” she said. “We can’t afford any slippage.”
Maura Gannon, general manager of The Mermaid & the Alligator, a nine-room hotel in Key West, Florida, said, “As soon as people get the vaccines, the phones ring.”
She said some travelers are wondering about bookings in May and June, traditionally part of the low-demand season.
Some travelers are looking for state-of-the-art accommodation that allows them to continue to physically distance themselves from other guests.
“Villas go first all year round,” said Viktoria Riley, marketing director at Ocean Club, a Four Seasons resort in the Bahamas. Three-bedroom villas cost $ 16,500 a night in the low season, which begins in mid-April and lasts until the end of November.
Certainly, the rates and room rates have plunged deep into the pandemic and there are still deals out there, especially for business travelers, who are still largely banished. Demand is never approaching pre-pandemic levels.
In the third quarter of 2020, the most recent data available, US domestic flights averaged $ 244.79, the lowest in 25 years without adjusting to inflation, according to the Department of Transportation from the USA.
However, airlines have suddenly reduced their ability to meet weak demand, which means there are fewer seats. He expects to add more seats as the summer season approaches.
And with much of the international travel still out of bounds, domestic leisure destinations have become the ideal place.
Delta Air Lines, for example, on Friday unveiled nine new destinations or enhanced services to outdoor holiday destinations such as Glacier Park, Mont. And Jackson Hole, Wyo.
“Travelers in the United States are somehow redirected to the United States and to countries we are allowed to visit,” said Henry Harteveldt, founder of Atmosphere Research Group, a tourism consulting firm. “It changes demand patterns and therefore changes airfare.”