Airfares are going up, in spite of the belief that business and personal air travel is also on the rise. The air industry blames federal regulations and taxation for the increases, and recently stood up to Congress to say "enough." Meanwhile, frugal travelers can find big cost savings by shopping smart and thinking outside of the box. Source of article:

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Cost of flying going up

Airfares are on the rise again. According to Bjorn Hanson, divisional dean of the Tisch Center for Hospitality, Tourism and Sports Management at New York University, travel costs were at their height in 2007, before dropping off. They started coming back up again in 2010, and have been increasing steadily each year. This year, Hanson expects travel prices to rise by four to six percent.

In the light of escalating air fare, many vacationers are getting wise about how they plan their trips. By thinking outside of the package deal-box, combining destinations and taking advantage of sales and perks, many travelers are soaring while nurturing their pocketbooks. However, finding these savings does require a fantastic deal of cyber-legwork.

More vacationers going one-way

In 2011, according to the Agency of Transportation Statistics, a third of all travelers were getting non-traditional itineraries. This plan to go just one way or to get a custom plan was only at 19 percent in 2002.

Are they restricted?

Getting the best deal requires understanding of restricted and unrestricted costs. Unrestricted costs give a fantastic deal of flexibility, but cost substantially more. If last minute changes are a big possibility, it might be worth the extra cost to save big fees.

You typically need to book restricted fares far in advance and need to make sure you get the exact flight you would like. You cannot change anything, and everyone who wants to change or end the flight will have to pay a huge fee to do so.

These fees are massive considering American Airlines charged $500,000 in charges to change or terminate reservations in 2011 alone, according to the Motley Fool. Alaskan Airlines only charged $11,000, but Delta charged $766,000 in the year.

Necessary fees from airlines

Congress heard from the airline industry on Thursday that fought back saying that it is extremely hard for companies to get on top and help get out of the recession if they are being taxed too much. Federal regulators have been increasing regulation and taxation a ton on airlines that have become a necessity.

The North American VP of the International Air Transport Association is Douglas Lavin. He said:

"We need government to stop looking at us as a cash cow and look at us as an economic engine ... We will be very aggressive here in getting this message out to regulators and members of Congress."

After that, there was a vote in U.S. Senate on May 22 to try and increase airline charges $5 per ticket for security, something House Republicans were opposed to.

Sources

New York Times

USA Today

Daily Finance