Summer Travel Forecast: Better, But No Blowout
â¿¿ Packed planes, steady airfare. Airlines for America, the industry's lobby group, expects 208.7 million people to fly, up 1 percent from last year. About 87 percent of airplane seats will be filled with paying passengers. Domestic fliers will pay $421 on average for a round trip ticket, down $6 from last summer. International fliers will pay $1,087, up $8, according to the Airlines Reporting Corp.
â¿¿ Amtrak expects to meet or exceed the 8.3 million passengers it carried last summer. But the taxpayer-backed railroad wouldn't disclose how fares compare with last summer's average one-way ticket of $66.39.
Mike Klopp, a commercial insurance salesman in Irvine, Calif., is starting to feel better about the economy. He and his wife plan to take their three kids on a vacation up the coast to Monterey in August â¿¿ a trip they skipped last year.
But Klopp says local trips are the limit because they're cheaper. Like many others, he's not yet willing to splurge on a dream vacation."The kids would love to go to Hawaii, but there's no way I'm going to do that. We've been hunkering down, money is tight right now," he says. "I'm not sold that things are better," he says. Other Americans likely agree. Although the unemployment rate has dropped to 7.5 percent, compared with a post-recession high of 10 percent, the Federal Reserve doesn't see it falling below 7.3 percent this year. And economic growth still isn't as strong as it has been after previous recessions. The economy grew at an annual pace of 2.5 percent from January to March. Economists expect the rate to slow to 2 percent from April through June, partly because of the federal budget cuts that started taking effect March 1. Those with higher incomes never stopped traveling, but thanks to new highs in the stock market they now feel secure enough to take longer vacations.
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