Between pent up travel demand and ramifications of the war in Ukraine, airfare prices are still skyrocketing. This is especially true for those looking to take a trip over Christmas. 

“The cost increases reflect everything from higher fuel costs, higher maintenance costs and higher staff costs with rising wages and the need to fix the problems evident upon reopening – like baggage handling and general operation that were causing flight cancellations,” observes Shane Oliver, Chief Economist at AMP. 

“Demand has also been very strong as people want to catch up for holidays and travel forgone over 2020 and 2021. This has enabled airlines to put through the price rises.”

Despite sky-high airfares, 60% of Australians are planning a getaway in the next 12 months, according to Finder’s Consumer Sentiment Tracker – up from 49% in December.

While some might be happy to cough up the extra cash, many of us aren’t ready to let the silly season wipe out our savings.

“If you’re looking forward to a summer holiday in Europe next year, the good news is that the data shows recovery and flight capacity is steady and consistent across many parts of the world. North America is now operating at just about pre-pandemic levels, with Europe also tracking well,” says Expedia Senior Director, Daniel Finch. 

But Angus Kidman, travel expert at Finder, warns that flights back from Europe are generally pricier than into Europe, with mixing and matching airlines likely to score you a better deal.

“For the European summer, there are still cheaper options if you’re willing to spend hours hanging around in an airport in Asia or the Middle East. The planned coronation for King Charles in May has added to early season demand.”

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TIPS TO SAVE ON AIRFARES

Book your flights on a Sunday 

After analysing thousands of flight bookings, Expedia’s 2023 Air Travel Hacks Report reveals that booking flights on a Sunday can save you up to 20% on average – both for domestic and international flights. Friday is the worst day to book. 

Don’t stick to one airline

For destinations like Europe, it’s worth comparing the price of two one way tickets with completely different rather than a return fare, as Kidman has discovered.

“Thinking laterally can also score you big savings without forcing you onto low-cost carriers. I’ve scored a business class return trip to Europe for $6,000 with creative routing, which is under half what Qantas will charge on that route. The secret? Fly via Asia using Malaysian and Finnair instead.”

Make use of price alerts

Set up a price alert with booking sites such as Skyscanner and KAYAK. They’ll automatically notify you when a fare reaches the price you’re prepared to pay. 

Avoid the school holidays (if you can)

“It’s a good way to keep costs down as these are peak seasons that come with peak prices. November and February are two of the cheaper months to travel that still have great weather in most parts of Australia,” says Kidman.

Book domestic flights 3 months ahead

According to Expedia, the sweet spot for snagging the best price on domestic flights falls between 70 – 100 days – or three months ahead of your travel dates. Travellers who booked during that period saved 30% on average compared to those who waited until the last minute. 

For Europe and international flights, book at least 6 months in advance

The key to booking international airfares is to book as far in advance as possible. Expedia research reveals holidaymakers who booked around six months in advance saved on average 25% compared to those who waited until three months out or less to book. 

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