Due
to the Airline Deregulation act of 1978 the prices of all airline tickets dropped
significantly because of the increase of competition. I feel that the ability
to go from point A to point B should be affordable to most of the public. In the
past, before the Deregulation Act, flying was primarily for the rich. Everyone
would get dressed up in their nice clothes and it was considered to be part of
the experience of a trip somewhere, instead of a hassle that it is considered
today.
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| Maybe this is how people fly in the future? |
There
are many reasons why someone can fly somewhere for the same price they can
drive a car. The first example is that with all competition between airlines
everyone is always trying to be the least expensive choice. According to costtodrive.com
it costs $146.86 in gas to drive from Detroit to Orlando. However, on the
website I noticed that there was an advertisement directly next to the
calculation. It was an advertisement for how much it costs to fly there. They
say a flight would only cost $158.00. With such a small difference why not fly?
If
the airlines did raise their prices, making flying commercially less accessible
to the public, I feel that the industry in general would be a lot smaller with fewer
planes, less jobs for people. Overall, I feel that there would be less money for the airlines. I
believe that in order for the airlines to make money on a regular basis they
need to raise the ticket prices to a point where they know for a fact they will
be making a profit, but not to the point where it becomes unaffordable to the
middle class. A very good article by USA Today goes in depth explaining how
much the ticket prices have already increased and the effects on the industry.
In your example, $158.00 for one ticket? Depending on the type of vehicle, you could carry as many as 4 passengers to drive. I'm not sure if the airlines are going to focus so much on the middle class, especially with the upper and lower classes widening every year.
ReplyDeleteI agree that higher fares will shrink the industry. Is driving the only option for people who could not afford air travel? I like that you used costtodrive.com for comparison data.
ReplyDeleteInteresting link about the price comparisons. Reading all these posts about airfare is making me want to travel!
ReplyDeleteI agree that if someone were to travel alone it would be better to fly especially from Detroit to Orlando the person would have to purchase food and probably hotel (unless coffee is their best friend). There is also the option of taking a bus from Detroit to Orlando however that takes multiple days and you'll have to purchase you're own hotel room separate from the bus ticket. http://tickets.amtrak.com/itd/amtrak
ReplyDeleteI think the necessity and the time spared is one of the reasons why people fly. It is not a luxury anymore and the increased ticket amounts will not bring back that luxury. If raising ticket prices will shrink the industry, how could one explain the increase in air travel over the years prior, during, and after the recession?
ReplyDeleteI agree - interesting link. I really wonder how much higher prices would shrink the industry...how has the increase in gas prices effected how people choose to travel by car?
ReplyDeleteAlthough sometimes the price of an airline ticket and the price of gas to drive may be similar to certain destinations, it all boils down to how many people are traveling. If you have a car full of people, than 150 dollars worth of gas is a lot better than 600 dollars in airfare!
ReplyDeleteThe price of airfare could rise by %30-%40 and people would still pay to fly because it is still considered a luxery. There is no other form of travel that will get you from A to B in a shorter amount of time. Think about it, people complained when gas hit $2.00 a gallon. We are still driving just as much today and it is $4.00 a gallon now. People will continue to fly. It is a means of transportation that will never die at this point.
ReplyDelete