Thursday, March 31, 2011
Travel Inflation > Inflation
Anyone think that travel's not a savvy business?
Today, I read Ryan Air is levying passengers a couple pounds to pay for the airline's costs during snow storms last year. (I do love the word 'levy' though.) Of course airlines are making new fees into a critical part of their business plan. Last year, they made more for baggage and change fees (about $6 billion) than their overall profits ($5 billion).
A recent Northwest Herald article, though, noted the average cost for a travel day in 1950 as $13, including rooms and meals, which rose to $164 by 2008. That's a jump of 1161.5%, compared with a 794.6% rise in inflation over the same period. A imbalance of 46%.