Wednesday, January 13, 2010

Packages ranked as best value

NEW YORK -- The travel gurus are reading their crystal balls for the new year, and here are some of their predictions.

From Travelocity.com's Genevieve Shaw Brown:

- Airfares are going up, but hotel rates are going down.

- Resorts in popular destinations dependent on air travellers -- Caribbean, Hawaii -- will be particularly good value.

- All-inclusive resorts will gain popularity with budget-conscious travellers.

- Booking early is the best way to get the lowest airfare. Capacity cuts mean airlines have more pricing power than 2009.

- Vacation packages will be the best overall value. Hotels are not keen to lower their standalone rates, but will do so as part of a package. Travellers who bundle flight and hotel will save the most.

From Hotwire.com's Clem Bason:

- Travel sales will remain flat; travel deals will continue to improve.

- Hotel prices will continue to drop. Deal-hunters should watch markets such as Las Vegas, Miami, Los Angeles and San Francisco, where Hotwire expects unsold inventory could be sold at up to 55% off.

- Air prices will stay flat, as capacity cuts offset the slow recovery in business travel, leading to price stability.

- Car rental prices will be high, with few deals and some sold-out locations. Use less-expensive brands such as Payless or Advantage and rent from off-airport locations to save money.

- Get savings from vacation packages, with discounted deals online.

- Price differences between five- and four-star hotels will get smaller.

From JWT (J. Walter Thompson):

- Look for more airlines offering annual subscriptions for checked luggage, like United's $249 US yearly fee.

- Travel marketers may target folks who've lost their jobs, but have some money tucked away, by pitching adventures that will help them re-evaluate their lives.

- You've heard of staycations; what do you think of haycations? These are interactive farm stays where city-dwellers gather their own eggs, make cheese and even learn to butcher an animal.

- Airlines will move closer to using plant-based bio-fuels in commercial jets.

- Business travellers will start bundling several short trips into one longer trip with several stops, to save time and money.

Booking early is the best way to get the lowest airfare. Capacity cuts means airlines have more pricing power than 2009.

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