As borders reopen, travelers face rising airfares—here’s what you need to know.
SINGAPORE: After two and a half years of border closures and travel restrictions, Mavis Tan is eager to embark on a holiday. While some of her friends traveled abroad last year through vaccinated travel lanes, she chose to stay put due to concerns over ever-changing travel rules and COVID-19 testing requirements.
With Singapore recently lifting the need for pre-departure and on-arrival tests for fully vaccinated travelers, Ms. Tan decided it was time to book a trip. The Netherlands, a country she fondly remembers visiting in 2019, topped her list. However, a quick online search quickly dampened her enthusiasm.
A round-trip economy flight to Amsterdam with Dutch airline KLM for the end of May was priced at S$2,200—substantially higher than the S$1,800 she paid back in 2019. Thinking this surge was due to the school holidays, Ms. Tan checked for flights in July, only to find even higher prices at nearly S$2,500. Singapore Airlines offered direct flights starting at over S$3,000.
“I’m very eager to go on holiday, but I’m not sure I want to pay that much,” she remarked.
Others looking for closer destinations are also experiencing increased airfares. Rebecca Low traveled to Bali at the end of April, paying S$420 for her round trip via Singapore Airlines. Despite being the cheapest option for her travel dates, she noted that other flight timings were priced S$150 to S$200 higher. For her upcoming trip to Bangkok, a two-way economy class ticket cost her S$380.
Ms. Low mentioned that her ticket prices were “slightly higher” than what she and her travel companions used to pay before the pandemic. “We all know oil prices have risen, which will affect airfares. But since it’s just an increase of a few tens of dollars, my friends and I are okay with it.”
How to Find Reasonable Airfares for Your Next Holiday
PLAN EARLY:
Even in the new normal, early planning is crucial for securing cheaper airfares, as prices can fluctuate rapidly as departure dates approach. According to Expedia, Singapore travelers are booking their trips well in advance, with some even planning year-end holidays over 90 days ahead.
AVOID PEAK PERIODS:
Traveloka’s Mr. Indra advises avoiding peak seasons—such as school holidays and festive periods—to steer clear of price surges and limited flight availability.
PICK THE RIGHT DAY:
The day you book your flight matters. According to the travel booking guide by Expedia and Airlines Reporting Corporation for 2022, Sundays are the cheapest days to book flights, with prices nearly 20% lower than Fridays, the priciest day. Thursdays also present savings opportunities for departures, with potential savings of up to 25% compared to Mondays.
EXPLORE PROMOTIONS AND LOYALTY PROGRAMS:
Research ongoing promotions from travel booking platforms like Traveloka, which often host annual sales featuring exclusive flight deals. Consider utilizing loyalty programs for member discounts and benefits. Additionally, opting for flexible travel arrangements can help manage unexpected changes, and purchasing travel insurance provides a safety net. “This approach maximizes your travel budget while protecting you from unforeseen expenses,” Ms. Rajaram advises.
Assistant Professor Fan emphasizes the importance of reading the fine print on refund policies and focusing on the total cost of your trip. Some airlines, like Emirates and Qatar Airways, now offer “no-frills” business class options without lounge access or checked baggage. Even within economy class, airlines like Finnair provide tickets that do not include complimentary checked luggage.
With the easing of border restrictions in Singapore and the region, the travel industry is gradually rebounding after a prolonged downturn, leading to airfares that are climbing even higher than pre-pandemic levels. Travel platform Expedia reports that air ticket prices are generally 20% higher than in 2019 for Singaporeans’ top five destinations: Bangkok, Bali, Kuala Lumpur, Phuket, and Seoul.
Similarly, Traveloka notes a noticeable uptick in airfares across the board. “Our top three destinations—Indonesia, Thailand, and Vietnam—are seeing increased bookings despite an average ticket price rise of 20%,” said its president, Caesar Indra.
Another traveler, El Lee, paid S$253 for a March trip to Phuket via Singapore Airlines. While prices were 20% to 30% higher than in 2019, the start-up entrepreneur considered them “reasonable” given the additional safety measures the airline has implemented. “For me, it’s about more than just getting from point A to B; it’s about in-flight comfort, safety, and supporting the crew that takes care of passengers,” Mr. Lee shared.
Even budget airlines are raising their fares; a round trip to Phuket on Scoot this month costs at least S$220, compared to less than S$150 pre-pandemic.
WHY ARE FLIGHT PRICES RISING?
The surge in demand for travel following the long-awaited reopening of borders is a primary driver behind rising ticket prices. “Since the beginning of the year, with each lifted travel restriction, we’ve noticed a rush of users booking trips to satisfy their pent-up demand,” explained Mr. Indra.
With airlines no longer desperate for business, they have phased out the super-low fares offered during the pandemic. As available seats decrease, airlines often raise the prices of remaining seats. “Travelers are snapping up lower fares as soon as they see them, and airlines are reluctant to offer more seats at reduced prices,” added Assistant Professor Terence Fan, a transport specialist at Singapore Management University (SMU).
This increase in demand comes during a period when airlines have not fully restored pre-pandemic operations. “Airlines are cautious about adding capacity because they want to ensure sustained demand first,” he noted, mentioning that many are still using smaller planes, resulting in fewer available seats.
Seasonal factors also contribute to recent price hikes, according to Expedia’s Ms. Rajaram, who noted that the upcoming school holidays and summer travel peaks are approaching.
Additionally, soaring oil prices driven by Russia’s invasion of Ukraine have increased operating costs, particularly for European airlines, which are adjusting flight routes to avoid conflict zones. “The combination of rising oil prices and heightened insurance costs for airlines has led to this season’s increased airfares,” Mr. Indra stated.
WILL PRICES CONTINUE TO RISE?
Industry experts anticipate that airfares will stabilize once the current surge in demand subsides. “Much of the recent demand is driven by people wanting to reconnect with family and friends, which will eventually ease, potentially moderating prices,” Assistant Professor Fan predicted.
Prices are expected to decrease as airlines gradually add capacity back into the market. Already, airfares for flights from Singapore to various parts of Asia have dropped nearly 30% over the past two quarters as low-cost carriers ramp up operations, Ms. Rajaram reported. Average ticket prices to popular destinations like Bangkok and Kuala Lumpur have remained steady month-on-month, returning to pre-pandemic levels.
However, it will take time for this to reflect throughout the market as airlines remain cautious about future trends, suggesting that higher fares may persist for a while. “More capacity is essential for achieving lower fares, but airlines are understandably hesitant to increase capacity at this time,” Assistant Professor Fan explained.
Dark clouds loom on the horizon with rising oil prices, increasing salaries due to labor shortages, and escalating interest rates. “Warnings of a recession could result in decreased demand, which would further contribute to the airlines’ cautious outlook in the near future,” the SMU expert added.
“Airlines will likely maintain this cautious approach for a while longer.”
