CHICAGO -- Air passengers paid an average of 7.2 percent more for domestic flights in 2006, while an average international flight cost 5.8 percent more than in 2005, according to an annual study published recenty by American Express Business Travel.
The average price for a domestic ticket in 2006 : $231, which is $28 less than the average ticket price from 2000. The rise of discount airlines has had something to do with this figure, as did the slow rebound of fares from the severe travel slump which began in late 2000 and got worse after September 2001. On the other hand, international flights last year cost more than in 2000; the average last year was $1,707, compared with $1,468 in 2000.
Fuel costs have been a factor, as has the ability to charge higher prices by restricting the number of available seats on popular international routes. So far, low-cost carriers haven't offered international flights. Over the past two years, international fares jumped 12.8%, following several years of relatively flat rates, the American Express study found.
The study also looked at hotel fares; interestingly, budget hotels had the sharpest price increases in 2006. Room rates rose from $150 per night in the fourth quarter of 2005 to $179 in the fourth quarter of 2006, while the price of a deluxe room $20, to $233 per night. Strong occupancy rates were a factor, says the report.