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Thursday AM December 17th, 2009

Travel has softened over the past year. Airlines have implemented several rounds of capacity cuts, which have helped stabilize air fares. Ed Mayberry reports.


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airplane wingJennifer Gaines is a contributing editor at

“For this holiday season, the Air Transport Association predicts that air travel will drop about 2.5 per cent for Christmas and New Year’s travel, so you know, that’s an indication that people are watching what they spend.”

There may be some pent-up demand to travel, when consumers feel comfortable about the economy once again.

“Well, I think that people do want to get back out there and travel, and you know, interestingly enough, we’ve seen share for international travel grow this holiday season, and I think, you know, that’s an indication that people are really seeing value in these international deals.”

Hotel rates are down.

“That’s where people will find the best deals and the greatest value is actually in their hotel.  And that holds true for both domestic and international destinations, and what we’re seeing is that people are really starting to take advantage of these deals, looking at it kind of as their chance to snag some really, really low package deals.”

Travelocity data shows average domestic airfare is still lower than last year — down about seven per cent — but is on the rise as the holidays approach.  

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