Thank Industry Competition For Falling Travel Costs


Thank Industry Competition For Falling Travel Costs


The overall cost of travel within the U.S  has been declining since mid 2015 according to the latest data from the U.S. Department of Transportation.

The price of the average domestic airline ticket fell to $372 in the last quarter of 2015, which is a drop of six percent compared to the equivalent period in 2014. Travel experts says lower prices are the result of a drop in airline fuel of between 30 and 40 percent over the last year.

Travelers are enjoying even bigger savings in car rental costs. The average daily car rental rate in the last quarter of 2015 was $38.88, which equates to a 13.6 percent drop compared to the same period in 2011.

Although the lowering price of fuel has been a major reason for the drop in travel costs, Parker Schlank, vice president of growth for Travel Leaders Corp, says a series of mergers among the major car companies has lead to a price war among the remaining competitors.

He says added competition from ride-sharing services Lyft and Uber has also driven down costs. “People want to do what is easiest and fastest,” Schlank says.

The merging of different travel modes was also bringing travel costs down. American Airlines recently entered a partnership with Uber which offers the airlines passengers discounts to use the service. As part of the partnership, American's loyalty reward program members can get $25 off their next Uber ride.

Read this next:

Must Read

This Huge Company Is Harnessing Mindfulness In Its Employees

This Huge Company Is Harnessing Mindfulness In Its Employees

  While some businesses have gyms and cafeterias for their staff, cloud-based software company Salesforce is giving it employees the silent treatment. T...

Are Those In-Office Perks Really That Good?

Are Those In-Office Perks Really That Good?

Having your employer give you a rent subsidy instead of a pay raise may appear to be a pretty good deal on the surface, but it may not be the best thing for...

3 Big Budget Mistakes To Avoid

3 Big Budget Mistakes To Avoid

Budgeting is all well and good when you are trying to get your financial life into order, but many people just can't get the budget to stick. They fall vict...

5 Personal Success Books You Need To Read

5 Personal Success Books You Need To Read

[caption id="attachment_93" align="alignnone" width="1698"] Books HD[/caption] One of the easiest ways to succeed in any venture is to have a mentor you can ...

6 Reasons Why You Should Start A Savings Account Today

6 Reasons Why You Should Start A Savings Account Today

A recent survey showed that 40% of Americans do not have enough money squirreled away to see them through an emergency as small as an unexpected auto repair. ...

Tumblr Is Tumbling Yahoo’s Purchase Expectations Out The Door

Tumblr Is Tumbling Yahoo’s Purchase Expectations Out The Door

Tumblr is proving not to be the cash cow Yahoo thought it was going to be , hinting it may write off the entire goodwill value it paid to purchase it. In...

Guy Spier Questions Value Financers

Guy Spier Questions Value Financers

Aquamarine Fund founder and value investor Guy Spier, founder is questioning the value of and the number of financiers in the work force today, including hi...

Hedge Fund Manager Phil Falcone Slams The Industry

Hedge Fund Manager Phil Falcone Slams The Industry

In 2012, the US Securities and Exchange Commission charged hedge fund manager Philip Falcone with securities fraud. In 2013 he was barred from the securitie...

China's Meltdown: What Exactly Is Going On?

China's Meltdown: What Exactly Is Going On?

China's financial slowdown hasn't made headlines of late, but that doesn't mean it’s over and that even residue effects won't spill into global growth and...

It Might Be Best To Hold On Before Acting On The Retirement Lure

It Might Be Best To Hold On Before Acting On The Retirement Lure

When one gets into their sixties, the idea of retiring becomes more and more attractive. But think long and hard, because the sooner you retire, the less social...

Your House Sale Profits Can Be Eaten Up In Paying Capital Gains Tax

Your House Sale Profits Can Be Eaten Up In Paying Capital Gains Tax

They say there are only two certainties in life - death and taxes. The problem is that unlike death which is an one off event, there are many forms of taxes tha...

5 Tips For the On-The-Side Business Builders

5 Tips For the On-The-Side Business Builders

Having a on-the-side small business, which you work mostly on-line after having spent some quality time with the family, while the 9 to 5’ers are sitting down...