Australian travellers snap up mile-high bargains as price war continues

AIRFARES to popular holiday spots like Bali and Fiji are cheaper than they were at the height of the discounting war, survey finds.

Bali travel

AIRFARES to popular holiday spots like Bali and Fiji are cheaper than they were two years ago at the height of the discounting war, according to a survey.

An analysis of international airfares by Flight Centre has found that many routes were becoming cheaper despite recent fuel price increases and improved economic conditions.

But while there are bargains to be had - especially in our region - flights to London, Paris and Los Angeles had all gone up in the period.

Flight Centre compared 30 international airfares advertised from Sydney on May 18, 2011, with fares to the same locations two years ago - at the height of the discounting war after the global financial crisis.

Fifteen of the fares were found to be cheaper than two years ago, with many significantly discounted. Six other fares had increased by 10 per cent or less, and only one fare increased by more than 25 per cent.

Traditional holiday favourites for Australian travellers were among heavily discounted destinations including Auckland (down 31 per cent), Fiji (down 21 per cent) and Bali (down 16 per cent) .

Cheaper fares were also available to Asian destinations including Hong Kong (down 22 per cent), Ho Chi Minh City (down 15 per cent), Beijing (down 12 per cent), Shanghai and Delhi (both were down 19 per cent).

Other bargain destinations included Athens (down 25 per cent) and Dublin (down 24 per cent). Airfares to Buenos Aires, Kuala Lumpur, Manchester, Manila also fell, but only slightly.

On the flip side, destinations that had become more expensive include Bangkok (up 17 per cent), Christchurch (up 13 per cent), Frankfurt (up 15 per cent), Hawaii (up 10 per cent), Istanbul (up 15 per cent), London (up 12 per cent), Paris (up 14 per cent) and Los Angeles (up 39 per cent).

The largest increase – flights to LA – reflected the fact the destination was at the heart of the discounting war two years ago after the launch of V Australia’s US services.

While currently more expensive than the May 2009 price, today’s LA fares are still 20 per cent cheaper than the $1725 advertised price on May 18, 2004.

While London airfares have increased moderately on the dates analysed, cheaper offers have been available recently.

The strength of the Australian dollar combined with the legacy of the GFC has allowed the discounting war to continue, Flight Centre's Colin Bowman said.

“Generally, fares remain well below historic highs and in many instances are cheaper now than they were during the economic downturn of 2008/09,” Mr Bowman said.

“Of course, the Australian dollar’s current strength is another significant benefit for travellers taking off overseas at the moment.

“Together, these two factors have created an environment in which Australian travellers have been able to secure some of the best value for money holidays we have seen.”

In the latest example of mile-high discounting, AirAsia has launched a sale offering one-way fares from Australia to the UK from $359. It is also cutting prices to a range of popular destinations including Paris, Bangkok, Phuket, Singapore, Bali and Hong Kong. Some regional airfares will go on sale from $3 - for example, from Kuala Lumper to Langkawi or Kuching.