Pandemic Pricing may be coming to an end.
However, in the last week I’ve repriced a few things that I priced earlier in the year and came to some suspicions. I will do the Africa posting at a later date.
I’m starting to think what we will have in the near future of pandemic related hurdles will be replaced with cost related hurdles further out this year and beyond. I’m not a fortune teller, but if we assume the pandemic is abating, then I think we are looking at travel being hit hard with serious price hikes in the wake of coronavirus..
I have been seeing a very predictable pricing structure during the whole pandemic. Basically, the further out travel is, and the safer it is, the more expensive it is. As those dates fall closer and travel gets more precarious, the cost goes down.
This is generally opposite of what happens in the Travel industry at peak times. This is going back to almost Normal but what is abnormal is how much.
For a few examples.
In Denmark, in June, a hotel priced in June, the Lovely Falsed Kro, had gone up over $100 a Night.
Back in August, the 3 bedroom Villa at Kea Lani on Maui, for 3 adults and 2 children, 5 nights, priced in a Package with airfare included at just under $28K. I had to tweak the dates to get that room available, but for 5 nights in June, $42K That is Hotel only. No Airfare.
I Just priced the lovely Fullerton Hotel namesake Fullerton suite for a week in March for $21,1138SGD. I booked it for a client of mine back in May for $12,171.34SGD. $1SGD currently equals $1.35USD. So that’s a BIG difference.
I’m also seeing odd things on the airfare side as far as space available. They all amount to an airline ‘propping up’ their prices either in allowable fares or in how much space they ‘appear’ to have available on an aircraft. Finally, the very low-priced refundable airfares I have been seeing for the past 18 months are getting a little harder to find and a little more. For quite a bit, Some carriers were offering fully refundable business class for just $200 more, Now $400 is becoming more common. I’m starting to wonder when I’m going to start seeing refundable being triple the price as it often was pre-pandemic.!
But the SPACE!
Let me show what I mean. The below is a business class fare ladder for the summer for Air France. The base fare (without taxes) is $2k. In theory, If “z” class is available and it isn’t a weekend and if the ticket is purchased more than 90 days out, it should be around $3700-$3800 (taxes are alot)
But… As you can see, for June 8th (when my client is going) it is showing Z Class isn’t available. And the next cheapest tickets “I” only have 2 left!
This creates a Basefare of $3500.00 or over $5100 with taxes.
But… There is only one seat assigned in business class. Seat A2 is full and you know what? It probably isn’t. That’s probably one that’s being held onto for Airport assignment.
This isn’t just a business class thing. Below is the Denver-Tokyo nonstop. See all the grayed out letters? Those are “sold out”
But! Like the Airfrance Business class, there are barely any seats assigned. This is resulting in an economy price of $2584.47. That’s because we can’t get lower than “U” class. Cheap United tickets, friends are booked in G,K, L and T.
Like I said, pricing has been weird during covid, but this… this is very odd.
If you are thinking of travelling next year, you may want to plan early, for a good price, this may matter more in 2022 than it ever has. I still think one should hunt and try tor options that are flexible, or better yet, *refundable*. Remember, the most flexible kind of travel credit is cash!