BELLEVUE, Wash., Dec. 12, 2017 /PRNewswire/ -- Today Expedia and ARC, a leader of air travel intelligence and commerce in the travel industry, released the findings of the fourth annual ARC Air Travel Outlook Report, a hallmark collaboration between two leaders in air travel. The report also features commentary from Egencia, the corporate travel company of Expedia, on the business travel aspect of the findings.
Expedia and ARC experts analyzed flight data, drawing on billions of data points for domestic and international air travel globally to identify patterns travelers can use to find airfare savings in 2018. The report (download in full here) reveals how travelers can gain real value for money by being strategic about not only when they book a flight, but when they start their journey. It also reveals trends savvy leisure and corporate travelers can use to pay less for seats in the "pointy end" of a plane.
Chuck Thackston, ARC's managing director of data science and research, stated: "It's well understood that consumers who possess relevant information in tune with their personal preferences before they shop, will be more confident and likely to make a final purchase. With our continued strong relationship with Expedia, including Egencia, ARC is able to provide these broad-based insights on travel around the world – both leisure and corporate – that supports the continued growth of air travel and the travel industry as a whole. The ability to see what is changing and provide actionable data and insights to ARC's customers and travelers worldwide is core to ARC's analytical capabilities."
While there are nuances by market, there are also some universal air travel pricing trends.
Busting the "last minute" myth:
Despite popular belief in the benefits of last-minute booking, in most parts of the world, economy fares tend to increase as departure date gets closer.
- Best booking lead time for a bargain: Booking a flight more than 30 days ahead of departure is when travelers are most likely to find the lowest Average Ticket Prices (ATPs) for economy and premium cabin air travel.
"Expedia is constantly looking for ways to improve the experience of booking travel. Finding patterns in data is at the core of what we do. Our algorithms use data science to analyze approximately 19 quadrillion potential flight itineraries and filter them to display the most relevant options for each journey," said Greg Schulze, Senior Vice President, Expedia. "When it comes to saving on flights, booking early, and taking advantage of the other unique ways to save on Expedia, will help people go places for less."
Best day to book for a bargain:
- For most international and domestic economy flights, cheapest fares are booked on a Sunday/most expensive are booked on a Friday.
- For Premium fares, Saturdays and Sundays are the best bargain booking days.
Best day to start a journey?:
Expedia/ARC's tip for 2018: No matter where you're headed, start your journey on a Friday.
- The cheapest days-of-week to start an international air journey in the economy cabin are Thursdays and Fridays.
- For US domestic economy flights, travelers paid lowest ATPs when they started their journey on a Friday.
- The cheapest days-of-week to start an international air journey in the premium cabin are Fridays and Saturdays.
"Business travel may typically take place during the week, but starting the trip on the weekend may help companies save on premium seats. This can turn a business trip to a "bleisure" (business/leisure) trip, improving traveler satisfaction and helping companies with their bottom line," said Tristan Smith, Vice President of Global Transport Supply, Egencia.
What months offer the best fares?
Expedia and ARC experts compared ATPs paid for flights during a calendar month of flight departures and found:
- For US travelers:
- December had highest economy international ATPs/February had lowest; June had highest economy domestic ATPs/September had lowest.
- October had highest premium international ATPs/December had lowest. June had highest premium domestic ATPs/August had lowest.
- For UK economy international travelers, December had highest ATPs/ May had lowest.
- In Asia, premium fares were highest mid-year (between April and September)
Traveling "on trend" - Where is the world traveling?
- Busiest international gateways into the US are New York, Miami, Los Angeles and Orlando, with global demand coming from Canada, Europe, Asia and a range of Latin America origins.
- Cancun remains a top international destination for US travelers.
- Travel from and within Asia Pacific is a trend: Shanghai, Taipei and Seoul in particular are fueling intra-Asia travel as well as inbound travel to key European airports/cities.
- Europe remains a substantial contributor to global air travel, with London and Paris key entry points to the region for international travelers.
- The Middle East is an important hub for travel between Europe and Asia Pacific (APAC) travel.
Download the FULL REPORT HERE
Data and analysis notes:
ARC and Expedia flight and data experts analyzed ARC's air travel data, tracking Average Ticket Prices (ATPs) and other sources for flight booking, departure and arrival trend data the 12-month period between 1 Sept 2016-31 August 2017, encompassing a full year of global domestic and international flight data, along with airline segment data.
The Airlines Reporting Corporation (ARC) is the premier driver of air travel intelligence and commerce in the travel industry with leading business solutions, travel agency accreditation services, process and financial management tools and high-quality data. In 2016, ARC settled $86 billion worth of carrier ticket transactions for nearly 7,000 travel agencies with more than 12,000 points of sale. Established in 1984, ARC is an ISO 27001 certified company headquartered in Arlington, Virginia, with offices in Louisville, Kentucky, Tampa, Florida and San Juan, Puerto Rico. For more information, please visit https://www2.arccorp.com/ and www.twitter.com/arctalk.
About Expedia, Inc.
Expedia, Inc. is the world's largest online travel company, with an extensive brand portfolio that includes leading online travel brands, such as:
- Expedia.com®, a leading full-service online travel brand with localized sites in 33 countries
- Hotels.com®, a leading global lodging expert operating 90 localized websites in 41 languages with its award winning Hotels.com® Rewards loyalty program
- Expedia® Affiliate Network (EAN), a global B2B brand that powers the hotel business of hundreds of leading airlines, travel agencies, loyalty and corporate travel companies plus several top consumer brands through its API and template solutions
- trivago®, a leading online hotel search platform with sites in 55 countries worldwide
- HomeAway®, a global online marketplace for the vacation rental industry, which also includes the VRBO®, VacationRentals.com® and BedandBreakfast.com® brands, among others
- Egencia®, a leading corporate travel management company
- Orbitz® and CheapTickets®, leading U.S. travel websites, as well as ebookers®, a full-service travel brand with websites in seven European countries
- Travelocity®, a leading online travel brand in the U.S. and Canada delivering customer service when and where our customers need it with the Customer First Guarantee
- Hotwire®, inspiring spontaneous travel through Hot Rate® deals
- Wotif Group, a leading portfolio of travel brands including Wotif.com®, Wotif.co.nz, lastminute.com.au®, lastminute.co.nz and travel.com.au®
- Expedia® Media Solutions, the advertising sales division of Expedia, Inc. that builds creative media partnerships and enables brand advertisers to target a highly-qualified audience of travel consumers
- CarRentals.com™, a premier online car rental booking company with localized sites in 13 countries
- Classic Vacations®, a top luxury travel specialist
- Expedia Local Expert®, a provider of online and in-market concierge services, activities, experiences and ground transportation in over a thousand destinations worldwide
- Expedia® CruiseShipCenters®, a provider of exceptional value and expert advice for travelers booking cruises and vacations through its network of over 240 retail travel agency franchises across North America
- SilverRail Technologies, Inc., provider of a global rail retail and distribution platform connecting rail carriers and suppliers to both online and offline travel distributors
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Egencia makes business travel better by making it more connected and complete. Egencia puts travelers at the heart of business travel, continuously supporting them with solutions that are more engaging and effective. Driven by consumer insights and technology investments from parent company, the Expedia, group, Egencia connects everything travelers need – content, technology, service and reporting – in one place. Egencia provides services in more than 65 countries. To connect with Egencia, visit egencia.com or @Egencia. Follow along on our blog.
© 2017 Expedia, Inc. All rights reserved. Expedia and the Airplane logo are either trademarks or registered trademarks of Expedia, Inc. in the U.S. and/or other countries. Other product and company names mentioned herein may be the property of their respective owners CST # 2029030-50.