Business Travel Coalition
January 21, 2015
The Airline Reporting Corporation (ARC) data center reveals information on recent price increases. The data show the U.S. must protect and indeed enhance the level of competition with U.S. carriers both U.S.-based new entry and airline entry from countries with whom the U.S. hasOpen Skies agreements:
1. The ARC January 13, 2015 press release (https://www.arccorp.com/news/pr20150113.jsp) shows that while the dollar volume of tickets issued in 2014 was up 4.02% the ticket volume was up on 2.3%, meaning the prices per ticket increased. (Of course, on its own this could be because agents issued more long-haul tickets in 2014 but the data I discuss below shows the prices for domestic and international tickets increased in 2014 – and more importantly have increased every year since 2009 even while ancillary fee revenues even from travel agencies have skyrocketed at least in relative terms.)
2. The charts posted at the ARC website with more detailed information show:
a. Average domestic fares have increased each year since 2009, with those fares having leapt by nearly 15% in 2010.
b. Average total fares (including domestic and international tickets) have also increased each year since 2009, with a large jump in 2010 of about 17%.
c. In addition, the amounts airlines have collected for ancillary fees for travel agency-issued tickets have skyrocketed, with a 35% increase in 2010, a further 50% increase in 2011, another 50% increase in 2012, a 35% increase in 2012 and a 7-8% increase in 2014 (2014 is likely not final).