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HOWTO: Hedge Those Airfares

May 12, 2008 at 4:03 PM | by | Comments (2)

Have you tried to book an airline ticket lately? They're getting expensive! But without a miraculous drop in the price of oil, fares are only gonna go up this summer.

Luckily, airfare obsessive Rick Seaney has a terrific tip for keeping your costs down as prices go up: Hedge. Usually it's detrimental to buy plane tickets more than about six weeks before your departure. But Rick says this summer, you're better off locking in a price now before fuel surcharges--and prices--go up yet again.

We love this tip because it's so insider-y. Airlines do the same thing when buying fuel; it's been helping the bottom lines at Southwest and JetBlue for years. If you're gonna stay within your summer travel budget, better get booking now.

Of course, we should mention that there's always the chance that fares will end up dropping on your particular route, but that's the risk you take when you're playing the oil futures market. Hey, now you know how the airlines feel!

Related Stories:
· Attention Summer Travelers: Hedge [Rick Seaney]
· Airlines Finally Passing Higher Costs on to Passengers [Jaunted]
· Airfares coverage [Jaunted]

[Photo: Fetchy]

Comments (2)

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This strategy may well not work...

In the trans-Pacific Hawaii market for example, fares are not going to get any higher this summer.  They are already dialed up to the max.  

So the only downside potential of waiting is additional fuel surcharge, if any, which will be relatively small.  

There is greater upside potential in waiting, however, as we've repeatedly pointed out.  Watch daily, waiting for soft points in the market and then buy immediately.  The time frame most likely to show price weakness is in the last two weeks in August, but it could happen at other times during the summer as well.  

I believe this is the time to play cat and mouse with the airlines.  Keep in mind, they are counting on you panicking and buying right now.

Aloha,
http://beatofhawaii.com

beatofhawaii com on May 12, 2008 at 4:43 PM #Permalink

Hedging

It is a good idea, but totally backfired on a friend.  Cost more and the available times narrowed day by day...night flight, anyone?
patriciaj on May 12, 2008 at 9:00 PM #Permalink

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