During the last few days, there has been a lot of talk and discussion around airfare and hotel price direction within the media. Since it is our objective of providing travel deals to our customers, we spent sometime thinking about this issue and seeing if we can have a viewpoint on this topic.

As we all know, pricing of any goods is a fundamental outcome of supply and demand of the underlying commodity. The price for a travel trip is 70-80% dependant on the price of airfare and hotel stay, especially if the traveler plans to stay more than a few days.We believe Asia is the first geography that is seeing a pick-up in demand and alsways had a shortage of supply,especially in countries like China and India. If someone is planning to take a trip in Asia, they may already start seeing some stability in travel prices, or even reduction in travel deals and promotions at high-end hotels.

The case for Europe and North America, primarily U.S, is a little bit different. The business travel demand has stabilized, however the pick-up will be slow and may take years to get back to the demand of 2007. . This time airlines are doing a better job of managing supply, however, managing hotel room supply is a tough job. Also in the airlines area, we believe supply in domestic market has been reduced faster than supply in International routes. International ticket competition is still cut throat and there are opportunities of getting good airfare bargains and deals.

We would advise travelers to book their tickets to travel to European cities like London, Paris, Rome, Geneva, other European countries, cities such as New York, Toronto, Montreal, Los Angeles, Chicago etc. in U.S and Canada. This is still a great time to plan , book or travel.