From Deseret News archives:

Cheap air fares will stick around

Fierce competition among airlines is keeping costs down

Published: Wednesday, Dec. 29, 2004 12:05 a.m. MST
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Still, analysts say the holiday weekend's nightmare appears unlikely to keep people from flying, as a combination of low fares and an improving economy spur travel. William J. Sutherland, vice president for travel at AAA of Southern New England, added that people put off travel in the aftermath of the 2001 terrorist attacks and the recession.

"We're really expecting 2005 to be the really first substantial year of travel" in a few years, said Sutherland.

The Travel Industry Association of America, a travel industry group in Washington, projects that spending by travelers will exceed $600 billion in 2005, up more than 5 percent from 2004. The group also estimates that the strong holiday travel season will carry over into the other winter months, with leisure travel growing 2.5 percent this winter after two consecutive years of flat growth.

While travelers might still find low air fares, they might not be so lucky with hotels where demand is strong enough that they no longer have to offer discounts. "You're going to get a deal on your air fare, but you're not going to see the drop in hotel rates," said Amy Ziff, editor-at-large for the Internet booking site Travelocity.

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Marriott International Inc., owner of the Marriott hotel chain, reported in its most recent quarterly earnings release that its room prices were up 4 percent from a year earlier, while occupancy was up 3 percentage points. June Farrell, a company spokeswoman, said that while prices vary from market to market, bargains in more popular destinations, such as New York City, are becoming few and far between.

"In some areas, business is really coming back, and coming back strongly," she said, "and you're no longer going to see the great giveaways."

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