Clark Howard's Tips

April 1, 2008

As the economy slows, there will be bumps along the way in the travel industry -- along with some opportunities.

Aloha Airlines, a full-fare airline that served Hawaii and parts of the United States, has gone out of business because it could not survive against a discount airline called go! Fares went down from about $200 one way to $49 one way because of go! We may see more full-fare failures in the industry as the discounters continue to offer appealing rates. One caveat: Those who bought their Aloha tickets with cash or a debit card (and haven't yet used them) lost their money. So be safe and only buy tickets with a credit card.

A new report finds that air travel is really softening in the United States, which means there will be great deals available. Richard Branson's V Australia opened a route between Los Angeles and Down Under and was offering a $777 roundtrip special before it sold out.

Meanwhile, the open skies policy will open up new flight routes between America and Europe, which will also mean lower fares. Clark will update you again in the coming weeks on summertime travel deals to the Old World.

On the domestic front, the decreasing demand for travel means airlines can't raise fares willy-nilly just because of high oil prices. So watch out for the gotchas, such as baggage-handling fees or high charges for bringing your pet onboard.

Consumer advice courtesy of