Air Fares Drop a Little, U.S. Economy Expands a Little
June 22, 2007. Two reports out this week bode well for the luxury vacation rental industry. The first, a USA Today analysis , found the average round-trip domestic airline ticket this summer cost 2 percent less this year than last year. The second found the index of leading economic indicators rose 0.3 percent. While bits of news may seem insignificant, they both counter reports earlier this year that airfares were going to rise significantly and that the U.S. economy could have faced a slight recession.
USA Today hired Sabre, the USA's largest computer reservation system, to examine more than one million tickets bought by May 31 for travel in June, July and August. That analysis found summer airfares for trips within the USA have dropped for the first time since 2004, despite soaring oil prices and airlines' repeated attempts to raise fares. The average round-trip domestic airline ticket this summer costs $340.
Various wire reports compiled in USA Today also touted overall good news about the American economy. The Conference Board's index of leading economic indicators rose 0.3%, higher than the 0.2% analysts were expecting. That index forecasts economic activity over the next three to six months. Experts also predict that numbers will show the economy grew by at least three percent in the last quarter, which ran from April through June.
