Clark Howard: Here’s Why Domestic US Flights Are Getting Cheaper and How You Can Take Advantage
Written by
Dawn Allcot
Edited by
Cory Dudak
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Money expert Clark Howard recently shared an article on X, formerly known as Twitter, referencing a drop in domestic flight prices. Flight prices typically rise in the summer when people travel more. However, there are other factors that drive flight prices, which are now leading to price cuts.
Why Flight Prices Are Dropping
“The way dynamic demand pricing works is that every additional seat of demand per flight pushes fares up on that flight,” Clark explained on the website Clark.com. “Last year, airlines were using 2019 as the base year going back to pre-COVID. Now, they’re using 2020 data.”
Since labor shortages and lockdowns caused fewer flights in 2020, prices were higher. However, domestic travel demand dropped in 2023 compared to 2021 and 2022. This could be because fears of a recession had people cutting back on spending. Or it could be because of the hassles of air travel, with delays within airlines’ control rising from 5.2% in 2018 up to 7.6% in 2023, according to figures published by the New York Post.
Whatever the reason, airlines are lowering their prices with domestic travel demand falling. Typically, Clark said, prices will drop 30 to 45 days before your travel date.
How To Take Advantage of Falling Prices
Since it’s possible your flight will drop in price after you’ve booked, it’s smart to keep track of prices. Set alerts with your favorite travel websites so you receive a text, email or push notification when a price drops. Apps like Expedia, Google Flights, Kayak, Hopper, and Skyscanner all notify you if the flight you viewed — or purchased — drops in price.
However, this method isn’t foolproof, Clark warned. If you book directly through the airline, you may not receive a notification. He explained on Clark.com that Southwest Airlines doesn’t make it easy to see if prices have dropped on existing reservations.
You have to go in and create a new reservation and compare prices. If you find a cheaper flight, book it and cancel your existing reservation. Make sure you don’t have to pay any cancellation fees that could offset your savings. You can usually avoid fees by joining the frequent flyers club for that airline.
The major carriers Delta, United, and American only charge fees on basic economy tickets.
Do This To Save Money on Upcoming Flights
Lastly, if you are planning a Labor Day trip, fall getaway, or even getting ahead of your holiday plans, book now. These low prices won’t last, experts say.
Hopper reported that domestic airfare fell 2% to an average of $267 per ticket in August. The plateau will last through mid-September, but then begin to rise as the holiday season approaches, peaking in late November or early December.
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