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Data Suggests, A Boon For Americans Travelling Abroad Is Global Turmoil


03/26/2017


Data Suggests, A Boon For Americans Travelling Abroad Is Global Turmoil
Costs for U.S. travelers seeking the best international deals may have been helped by the global uncertainty and the effects of President Donald Trump immigration policy which may be suppressing bookings from abroad.
 
With flights from the seven countries listed in the president's original travel ban down 80 percent, and according to data from travel intelligence company ForwardKeys, Trump's hardline stance on immigration has led to a decrease in total bookings to the United States.
 
And lesser number of Americans are looking to head abroad. According to data that price-tracking site Hopper, since Trump's January inauguration, searches for international flights from the U.S. have decreased. The site suggested that the change is more than seasonal as this time last year, searches were on an upswing.
 
Better deals for consumers looking to venture abroad have been made possible by the decline in travel, experts say.
 
15 percent cheaper compared to last year are flights to destinations in Western and Northern Europe. According to Hopper, now it is possible to visit for a fraction of the usual airfare to France, the Unite Kingdom, and Nordic countries like Sweden, Finland, and Norway.
 
The app found deals including $738 round-trip flight between Atlanta and London runs $735 and $388 on a round-trip flight between New York and Stockholm.
 
Also possessing the advantage of a stronger U.S. dollar are travellers hoping to go abroad this year. According to data from FactSet, while against the euro trades around $1.07, down from $1.10, the pound-U.S. dollar exchange rate is now $1.25, down from $1.43 last year.
 
"Europe looks like the big bargain this year," Patrick Surry, chief data scientist of Hopper, said. A combination of low fuel prices, increased competition and a lack of demand for Europe-bound flights were the reasons attributed by him to the price drop.
 
Travellers could see big savings with that impact on hotel rates and other on-the-ground expenses. According to figures from Squaremouth, a travel insurance comparison website, compared to the same seasons last year, the average cost of a trip to the U.K. during the summer and fall seasons is expected to drop by 7 percent this year.
 
There wil be a 13 percent drop in the average cost of a trip to Germany, Squaremouth anticipates. Travelling to France will be 6 percent cheaper and Italy could be nearly 10 percent less.
 
However not every destination is less expensive. Hopper found that compared to last year, flights to South America are 20 percent pricier. And according to Squaremouth, expected to rise 13 percent  is the average cost of a trip to Finland.
 
Surry said airlines saving on the cost of fuel are passing these benefits to consumers, said Surry with oil on the decline for the last several years.
 
Meanwhile, other carriers are being forced to offer limited-time promotions and fare sales by the rise of ultra-low-cost carriers like Iceland’s WOW Airlines and Norwegian Air which are pushing down market prices.
 
"I've been in this for years and I've never seen fares this low."-George  Hobica
 
(Source:www.cnbc.com)