Vacation Time? Find Out Why Plane Tickets Are So Expensive
Gas is part of the reason why plane tickets are so expense, and maybe scrap metal can help. A lot of scrappers throughout the year use their extra scrapping money for vacations and for trips around the country (maybe to find more scrap), but it seems like plane tickets are still expensive.
I was talking to a customer at a scrap yard and they were telling me how the money that they make from their hard work scrapping items like grills, computers, dishwashers, and other types of materials are what they use to pay for their vacations…but something happened over the last 6 months that they did not understand and it was why plane tickets are so expensive still.
With oil prices dropping over 50% in the since the summer of 2014, many people are wondering why the plane tickets are still so high. There are many answers, but for our scrappers we narrowed it down to the top 3…
- Supply & Demand – Want to go to Florida for three days but you don’t want to drive? Well…you will have to fly (unless you have a teleporter…and if you do message me!) down to Florida but you can’t figure out why plane tickets are so expensive still. Because the airlines have the ability to control the market they have the ability to make you spend more of your hard earned scrap metal dollars on those tickets.
- Gas Prices – While the gas prices have gone down so much, larger airlines are not always affected as easily. Many airlines take out large contracts on gas prices and lock rates in for 3, 6, 12 months, or even more than that. So many airlines still have higher rates that they need to fulfill and they won’t be dropping those tickets anytime soon. So you have to look at it this way…those hours that you drive around looking for scrap metal is less expensive because the gas prices are down, so hopefully that will help counter balance your vacation funds.
- Airlines Recovering – When the scrap markets went down in 2008 along with the general economy, housing prices, and many lost jobs, the airlines got hit hard as well. For a long time less people were traveling, those airlines were locked into higher gas prices (like we read about in example 2), and many airlines were forced out of business or to merge with other airlines. While you were taking a hit with the scrap prices dropping, thousands of businesses and industries were taking hits as well. Many airlines are still recovering from the losses that they had at the time and it made it hard for them to make any money even though they continued to run their fleet.
So when you look at why plane tickets are so expensive, and how you want to be able to stretch the hard earned scrap dollars you have into a vacation there are many many reasons that you have to look at. Sometimes things are not as easy as copper and Brass sorting.