'It's a perfect storm': Fuel costs expected to make air travel, cruises more expensive

Travel industry insiders believe a perfect storm of pent up demand, loosened COVID-19 restrictions and soaring fuel prices will eventually lead to increased travel fares.

“If you’re thinking about a summer trip, you need to book ASAP,” says Melanie Harding, a travel agent at Valente Travel in Windsor, Ont.

Harding says there’s a pent-up demand to fly and cruise away after two years of fairly restricted travel. Airlines have been flying at a reduced capacity and because of that, she says there’s still a short supply of flights to take people where they want to go, including direct flights to sunny destinations.

“You are going to definitely pay premiums for any seat you may get if you hold off,” Harding says.

Those premiums are driven by many factors, but loosened federal restrictions and disappearing testing requirements blew the barn doors wide open, according to travel insurance broker Martin Firestone.

“Those three (factors) motivated people to get off the fence, and go away,” says Firestone, who says one factor in particular could make COVID-era affordability a thing of the past: the rising cost of fuel.

The cost of crude has shot up by double over the past year and while most airlines aren’t jacking prices up just yet, Firestone says airlines will ultimately need to pass costs onto consumers.

“Now we wait and see. When will the ticket prices increase? And that is only a matter of time till that takes place,” he says.

Firestone says increased fuel costs will affect both airliners and cruise-ships and will likely eventually be tacked on in the form of a surcharge.

As more people get comfortable with travel, Firestone says the already high demand will only make it harder to find affordable fares.

“What one has to worry about going forward is should I buy my ticket now while the price is at a palatable amount, versus waiting for the summertime and buying it then, when it is surely going to be higher than it is right now,” he says.

Harding at Valente Travel says cheap flights will still exist but bargain hunters will not be able to be as picky when looking for affordable destinations.

“If there’s empty seats on a plane, they still need to fill them,” she says. “But is your destination going to be available? Maybe not.”