Air Transportation Prices Derailed

Air Transportation Prices Derailed

Air Transportation Prices Derailed

Air travel is increasingly becoming more and more expensive with less and less perks. Have you ever noticed that the taxes and fees cost twice as much as the actual cost of air transportation? Look at your travel receipt and you would know what I am talking about. It seems very unfair, right? What about the decline of the all-inclusive seat, that is, a free meal and 2 pieces of checked luggage included? Not long ago, you would be given an allowance for 2 pieces of 70 pounds each, luggage allowance. Present day, you are limited to 50 pounds, if flying economy class, and you may even have to pay for each checked luggage. Granted, 70 pounds may be too heavy to lift for the average person, but packing a suitcase with only 50 pounds can be hurtful when you take that long awaited vacation only to realize you can’t return home with the entire souvenir store in tow.

Fuel prices, competition, demand and supply are the four major factors that influenced these changes, with the first two factors accounting for the most damage theoretically. Every time a price fluctuates higher, airlines pass on the bill to consumers. Many articles will tell you that airline companies barely make any profit and some airlines use this fact to cram in more seats, destroying what little elbow room you once enjoyed before. The truth of the matter is, some airlines have indeed gone bankrupt while others have been merged, causing a lack of competition and incentive to gain sales. With two, sometimes three major airlines in a developed country and millions of consumers flying every day, airlines can charge as much as they please because options are limited to us, as customers.

Let’s put the fees into perspective. To fly a plane, you need to have fuel so you have the cost of fuel, you also need at least 2 to 3 pilots depending on the size of the plane and the length of your journey. Air stewards are also a must and for long haul travel and international flights, you would have food, drinks and snacks onboard. You would also have personnel working in varying positions, such as administration, IT, accounting, baggage handlers, mechanics and customer service representatives. Then you have the fees and taxes that are mandatory such as security, transportation tax, customs fees, immigration fees, international tax, facility fee or basically parking fee for using the airport, to name a few. Each fee may seem minimal when looked at it individually, but if you really sit and add them up together, they amount to a lot more than you would have bargained for.

Prices for air transportation would no longer be as low as before, only fluctuating based on the load factor, that is, amount of person needed to fill the plane. Airlines would lower prices to fill planes but this only happens when both demand and load factor are low. Knowing when to get cheap airfare is rather difficult but you may strike luck if you are flexible when you travel. In reality, business travellers and leisure travellers are the two types of customers that cause prices to fluctuate.

 

 

5 Ways to Improve Your Finances

It is never easy achieving financial goals and are ones that do not happen overnight. Improving your finances takes dedication, control and understanding the steps you need to take to avoid spending on things that are recreational or not needed. However, there are some steps that you can take to do just that and here are five of them.

1. Make Savings Automated

Many times it can be difficult to put money away for savings when you live from paycheck to paycheck. However, you can save if you make saving money a priority, as it can make you live with the money you do have. Automated savings can help you, as by setting up transfers that are automated you can set aside an amount that will be taken out every paycheck you get. There are even automated savings applications such as Digit that can make the process easier. Automated bill payments are also a good idea in order to make sure you pay on time and keep a healthy credit score.

2. Lose Recurring Expenses

One of the easier things you can do to improve your finances is rid yourself of recurring monthly expenses. Look at things such as your cable bill, cell phone bill, streaming service, even a gym membership you do not use often. Look into lowing cost plans for such thing as cable and cell phone serviced and get rid of monthly subscriptions you do not really need. Look at recurring expenses and what you can do without and they will add up when you ditch them and help you save more money.

3. Maybe a New Bank is in the Cards

Banks often charge hefty fees, especially when you do not use your banks ATM and for overdrafts. Look at the fees that are associated with your bank account and stack them up against what others will charge. Checking fees with different banks can help you find the one that has the lowest fees and if you do have them incurred it will not cost you an arm and a leg.

4. Insurance Issues

Many times people look for the best insurance and then after purchasing a policy, does not matter what it is for, they forget about it. Insurance rates will change and if you shop around you can find a better price for what you need covered. You can also save some money if you raise the deductible as well or getting rid of coverage levels. In this case you may have to pay a little bit more for coverage, but if you have a very clean driving record and no problems with your home in homeowner’s insurance in the long-run you can save a significant amount of money.

5. Declutter

This can be the easiest thing to do to save money, as getting rid of items you don’t use can help you out. You can sell items online and for things that need upkeep you can get rid of that cost as well. From clothing to old video games to CD’s and toys decluttering what you have will not only save money, but you can make some as well. On top of that your significant other will likely be a happy camper with a little decluttering.