Analysts: No Southwest Effect for travel to the United States
DALLAS, TX - FareCompare has released a second set of findings based on a comprehensive analysis of the Southwest Effect in new international routes.
DALLAS, TX – FareCompare has released a second set of findings based on a comprehensive analysis of the Southwest Effect in new international routes. The study reveals that while consumers traveling to the US did experience the Southwest Effect initially, those average lowest fares have since increased, returning to the levels they were prior to Southwest’s foray into those markets.
“Our latest study shows that Southwest Effect did not stick for travelers flying from the Caribbean, Mexico and Central America to the United States,” said Rick Seaney, CEO and co-founder of FareCompare. “Travelers there saw some initial benefit from increased competition, but fares to the U.S. from these markets have steadily increased in the first half of 2016 and will likely continue to do so in the near future.”
This conclusion contrasts with the first wave of analysis on the Southwest Effect conducted by the FareCompare team, released in April 2016. That study reported fares from the U.S. to international destinations now served by Southwest dropping 25%. In ensuing months, FareCompare data shows that percentage remained consistent.
“The news remains good for U.S. travelers looking for deals on getaways to places like Jamaica, Belize, Costa Rica and Mexico,” Seaney said.