Adobe Analytics: Online domestic flight prices ease slightly in June as travel demand plateaus

Airplane flying in the clouds.

Image credit: Adobe Stock/ABCDstock.

Adobe continues to track the airline recovery with new Adobe Analytics data for U.S. domestic flight bookings online. Adobe provides the most comprehensive report of its kind, measuring direct consumer transactions from six of the top 10 U.S. airlines and over 150 billion web visits.

June 2022

Prices for domestic flights eased slightly in June, decreasing 6.4 percent month over month (MoM). However, prices remain above pre-pandemic levels with a 23.7 percent increase since 2019. This marks the fifth consecutive month where prices have stayed above pre-pandemic levels (May 2022 up 30 percent; April 2022 up 27 percent; March 2022 up 20 percent — February 2022 up 5 percent). Prices have also increased significantly over the course of the year, rising 38 percent since January 2022.

Domestic flight bookings in June 2022 drove $7.9 billion in online spend, a 5.7 percent decrease from the month prior (May 2022, $8.3 billion), and equivalent to $400 million less in consumer spend. Bookings are down by 2.8 percent on a monthly basis and are below pre-pandemic levels by 1 percent.

Inflation in ticket prices continues to impact consumer purchasing power. Online spending for domestic flights is still above pre-pandemic levels by 25.4 percent compared to June 2019. Bookings, however, are down 1 percent, highlighting the impact of elevated prices. Like previous months, the wide gap indicates that consumers have been paying considerably more for the same amount of service. Year to date, consumers have spent a total of $45.2 billion online for domestic flights.

“The changing economic landscape and inflated expense for travel is impacting how consumers reprioritize their budgets,” said Vivek Pandya, lead analyst with Adobe Digital Insights. “While flight prices saw mild easing in June, they remain high. As a result, we are starting to see summer bookings growth plateau and dip below pre-pandemic levels. However, interest in marquis holidays like Labor Day remains consistent.”

Looking ahead

High prices are impacting summer plans (trips that land between June 2022 and August 2022). Domestic bookings for summer travel is down 5 percent compared to this point in 2019 (through the end of June) — spend is up by 7 percent, however. Domestic bookings for Labor Day are up 5 percent compared to 2019, and spending is up by 20 percent, showing the impact of higher fares.

Based on arrival sites, the top 10 domestic destinations for those traveling this summer include: Bozeman, MT – Long Beach, CA – Orlando, FL – Fort Myers, FL – Miami, FL – Pensacola, FL – Austin, TX – Kailua-Kona, HI – Winthrop, MA – Savannah, GA (Top 10 destinations based on lift, not volume).

Methodology: Adobe offers the most comprehensive set of insights of its kind, based on analysis through Adobe Analytics that covers over 150 billion visits to travel, leisure and hospitality sites – measuring transactions from six of the top 10 U.S. airlines (more than any other technology company).