Cheaper fares, lower hotels rates for summer

Summer travel is shaping up to be a bargain, with airfares to U.S. destinations down an average of more than 9 percent from last year and overall summer fares to Europe down more than 19 percent, according to a new report by Live Search Farecast, a Seattle company owned by Microsoft, that predicts trends in fares and hotel rates.

The cost to travel to Europe may be the most striking change since last summer, the company said.

On average, fares for summer travel to Europe are down $240 per ticket, the firm said. Fares to Europe in May are down an average 24 percent.

"Recently, airlines anticipated weak demand and reacted by cutting capacity, however, the decrease in consumer demand has even out paced the reduced capacity," said Joe Grus a Farecast researcher. "I anticipate we will soon see additional capacity cuts, meaning these low fares may not last long."

Hotel rates, on the other hand, will likely continue to stay low since hotels don't have the ability to reduce capacity. Rates on premium hotels in San Diego, Tampa, Fla., New York City, Denver, Chicago and San Francisco dropped on average 27 percent for May and June compared to last year, Farecast said.

For summer travel, Farecast's top destinations for lower airfares and hotel rates include London where Seattle travelers can fly round-trip in mid-May for around $500, including taxes; Las Vegas, where premium hotel rates have dropped 30 percent on average since last summer; Miami; San Diego; and Rome where Farecast says fares for summer travel are down an average of $327 per ticket from last year.

Carol Pucci: cpucci@seattletimes.com