Fares Continue Rising, and Rising, and Rising

Contributing Editor Carl Unger believes that every trip is worth taking. He loves an extended trip to Europe as much as he enjoys exploring the towns and landscape near home. Basically, you'll find him wherever there is good food, fresh air, and plenty of stories to bring home.

Carl has been writing for SmarterTravel since 2005. His travel writing has also appeared on USA Today and the About.com Boston travel guide.

The Handy Item I Always Pack: "It's not revolutionary, but a small Moleskine notebook is my one travel must-have. It's great for noting things you want to remember and it takes up hardly any space in your bag."

Ultimate Bucket List Experience: "Japan. I'd love to take a month off and visit the cities, temples, and countryside. I'm fascinated by the country's juxtaposition of ancient traditions and modern ambitions."

Travel Motto: “Why do you go away? So that you can come back. So that you can see the place you came from with new eyes and extra colors. And the people there see you differently, too. Coming back to where you started is not the same as never leaving.” –Terry Pratchett

Aisle, Window, or Middle Seat: "Window."

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New data from the Bureau of Transportation Statistics (BTS) illustrates something most of us could have guessed, which is that fares are continuing to go up. The most recent figures, from the second quarter (April through June) of this year, show the average domestic fare rising steadily, to $341.

Before this, the average fare hadn’t cracked $340 since the fourth quarter of 2008.

More troubling, this is the fourth straight quarter that the average fare has gone up. In the second quarter of 2009, it was $301. No surprise, then, that Priceline is predicting this will be the second most expensive Thanksgiving and Christmas travel season in eight years.

The BTS report also notes that the ratio of airline revenue from fares has been steadily dropping. In 2000, airlines pulled in 84 percent of their revenue from ticket sales, with the other 16 percent coming from ancillary revenues, which include extra fees and charges. As you might guess, the last couple years have seen a dramatic increase in ancillary revenue. So far in 2010, that ratio is around 70 percent from fares and 30 percent from ancillaries.

Readers, have you felt the pinch of higher airfares?

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