Spread the love
Post Views: 4

For over two years, the main topic of conversation across the world has been about the impact of the deadly Covid-19.
Now that the worst of the pandemic seems to be over and people are traveling more freely again, another hot topic has grabbed the limelight: expensive plane tickets. Internet searches show expensive airfares, and while wanderlusts are choosing to stomach these higher costs after being grounded for so long, they wonder- what’s causing the prices to be so high?
Just like the situation is across the world, the cost of living is steadily rising in Australia too. Rising prices of oil, petrol, groceries, flight tickets – it’s all hurting the Australian pocket more than it has in a very long time. As the country finally begins to recover from a swathe of crises – bushfires, Covid-19, droughts, and floods – there are burning questions being asked about the quality of life in Australia. The most pressing one is: why has everything become so expensive? 
In this backdrop, let us understand why Australians are facing sky-high travel costs-

  • Inflation- Recent figures released by the Australian Bureau of Statistics (ABS) show that the Consumer Price Index (CPI), which measures household inflation, rose by 2.1% in the first quarter of 2022 and 5.1% annually. Naturally, prices for gas, hotels, airfares, and car rentals have all been up.
  • Fuel prices- An oil price hike unavoidably affects a range of other goods and services, and travel is one of them. With fuel prices soaring, the higher expense for airlines means the price of tickets for international flights will also be going up.
  • External influences- Russia’s invasion of Ukraine has been a prime factor of hiked prices. Russia is in the top three largest oil exporters in the world. Due to recent war sanctions imposed on Russia, the supply of oil is lower than the demand, which is picking up again.
  • Other factors- exchange rate changes, shipping and insurance costs, port charges, and terminal storage.
  • Additionally, a lack of competition and limited airlines flying into Australia are also culprits behind steep fares.

There is another challenge that should be noted- many pilots, flight attendants, ground handlers and other aviation workers lost their jobs over the past couple of years. With travel picking up, the industry now finds itself unable to hire fast enough to allow for seamless operations at its pre-pandemic levels.
GOOD WATCH- (30) How the Metaverse is Changing Travel in 2022 – YouTube
When will prices fall back down?
Well, the simple answer is- no one knows. It’s unclear how long these high prices will persevere, even as many travelers seem willing to pay up. While there’s a prospect of more fares returning to levels they were at before Covid-19, the war in Ukraine, global economic crises and virus outbreaks are still risks.
Besides, all eyes are on the Albanese Labor Government that will have to help Australia’s tourism and travel industries bounce back and thrive. The Labor Party aims to invest AU$48 million to attract and skill-up workers, support quality tourism products, and deliver infrastructure upgrades. Now, only time will tell how other factors align as the country gears up to have its tourism industry back on track.
SOURCE- KALKINE MEDIA