The big rise in domestic airfares since last May, reflecting ready-to-fly demand that had waited two years to get back in the market, may be almost over according to one industry prediction.
Hopper, the online booking platform that specializes in fare predictions, says that budget domestic roundtrips will have dropped 25% from the May peak, averaging around $286 by the end of the month.
Hopper defines budget fares as those that are lower than 90% of the fares it quotes. In May, the average was $410. The new lower level would put it in the ballpark with 2019 rates. Hopper also expects a rise over the winter to about $368 based on seasonal patterns.
While Hopper is analyzing budget fares, other fares tend to follow the same path, with the exception of high-end front-of-the-plane rates. According to Hopper, by the way, the dropoff in demand has also affected hotel rates, but only be a few dollars.
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