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8 Simple Rules for Travel in '05
US News & World Report · December 30, 2004

It's been a flier's market since 2001 - as well as an opportune time for travelers of all stripes. The post-9/11 travel downturn led to three years of great deals, often at the last minute. But all that is changing. Americans are traveling in big numbers again. Bargains are scarcer, and planning ahead will often be essential. But you can still snare a good deal - if you hew to the new rules for travelers in 2005.

1 Ring in the new year with new websites. Newcomers kayak.com, mobissimo.com, and sidestep.com let you search a variety of travel sites with a single keystroke, turning up deals that might otherwise be hard to find. These sites should be enshrined on your list of favorites, along with established dot coms like farechase.com and booking.com. And what about the usual suspects: Expedia, Orbitz, and Travelocity? They might not offer as many options, but they're not standing still, either. Their hook: customized packages that bundle airline tickets and hotel rooms. Lorraine Sileo, an online-travel analyst for PhoCusWright in Sherman, Conn., predicts these so-called dynamic packages will be hot in 2005. Why? They're enormously profitable to travel sites, which buy rooms in bulk and mark them up. "Find a site that does dynamic packages," she says, "and you'll probably find a deal."

2 Stay extra flexible with departure times, hotels, and even airport selections. Not being locked into a particular date - or destination - for a vacation has always helped travelers save money. But as demand for hotels, airline tickets, and cruises increases in 2005, people with rigid schedules will get socked with higher prices, predicts Matthew Bennett, who edits the website Firstclassflyer.com. In fact, if you're locked into a particular date, chances are that the reservation system will tag you as a business traveler with an expense account - and charge you a higher rate. And the flexibility rule applies to choice of airport, too. "Look for alternative airports, because there might be seats available at a lower price," advises Bennett. And driving the extra miles to an alternate airport might also be the best way to book first-class seats, which are as popular as ever because of drastically reduced prices.

3 Procrastination can still pay - but only for domestic fliers. Last-minute airfare, hotel, and cruise specials were abundant during the past three years. In 2005, the only last-minute bargains you can count on will be domestic airfares. If you're flying within the country, ticket prices should remain low up to a week in advance, thanks to continuing competition from low-cost carriers. "Wait any longer," says airfare expert Bob Harrell, "and you're pushing your luck." Foreign fliers will face a different scenario: More folks are winging it overseas, so international airfares are high, and few if any discounts are available at the last minute.

4 Renting a car? Plan ahead, and try not to cancel. Cheap car rentals were plentiful after 9/11. But prices will edge higher in 2005, warns car rental consultant Neil Abrams. There may be some discounts in spring and fall, but otherwise, "rates could be up for the year." And before you book, ask about cancellation fees. Some rental agencies will sock you with a penalty if you book, then cancel, during a peak period, especially if you've reserved a high-demand vehicle like an SUV or a mini-van. If that's your choice of wheels, reserve at least a month in advance, Abrams advises, and don't change your plans. But you may be able to avoid cancellation fees by booking online. At Hertz, for example, reservations made through the website typically aren't subject to penalties if you change your mind.

5 The best hotel deals are online - but not at the hotel's website. Room rates are headed up this year - PricewaterhouseCoopers hotel analyst Bjorn Hanson projects a 4.3 percent jump in 2005. But with the average hotel only about two-thirds full, there will be plenty of wheeling and dealing behind the scenes. Hotels will say that their websites have the cheapest prices and even offer "best rate" guarantees to convince you. But these promises have loopholes bigger than a presidential suite. They exclude the rates you'd get in a dynamic package (rule 1) and the "opaque" sites like Priceline and Hotwire, which won't provide the hotel name until you book the room. Go to the right travel site, says John Jones, a hotel expert at Booz Allen Hamilton, and you could slice a nice chunk off your hotel bill.

6 Book six months to a year ahead for popular cruise destinations, and don't expect any bargains. That's what Anne Campbell, editor of the website Cruisemates.com, suggests. Otherwise, a bed on a boat bound for Europe, the Caribbean, or Hawaii could be hard to find. If you want a cabin on a sought-after cruise, you have to buy it at least six months in advance, Campbell says. Prices are up, too. They increased about 15 percent in 2004, and Campbell expects them to stay high in '05. But a procrastinator could sail off into the sunset by picking a destination like Alaska, where cruise lines thought there would be lots of demand and scheduled lots of trips. But enough customers haven't come calling, so there's a glut of berths in the Last Frontier.

7 Headed to Europe? Go east. The dollar is hitting historic lows against the European currency, and predictions are that the greenback will remain weak for the foreseeable future. So a vacation on the Continent could be prohibitively expensive, unless you're willing to try an eastern European country. According to a new American Express survey of travel agents, Prague and Budapest are two of the "up and coming" destinations for 2005, and prices are typically lower in those cities than in western European centers - for example, chowing down on a Big Mac will set you back $4.20 in Paris but only $2.76 in the Hungarian capital.

8 Pick one frequent-flier/guest-loyalty program, and stick with it. With airlines in various states of financial health and the rules of programs changing every nanosecond, you might be tempted to join several frequent-flier programs just in case. But Joel Widzer, author of "The Penny Pincher's Passport to Luxury Travel," says 2005 is the year to go the other way. "Pick one or two programs," he says. That way, you fly your way to elite status, which is "more difficult to achieve but also more rewarding once you get there." That goes for hotel "frequent stay" programs, too. But once you make it to the top, you'll be treated like Donald Trump - and your award points will be better protected from any new efforts to devalue their worth.

New year's revolutions

IN Southwest Airlines Adds Philly and expands Chicago gates.

OUT US Airways Bankrupt airline may liquidate in 2005.

IN California Mild temps, wine country for Sideways fans, theme parks.

OUT The Caribbean Last year's hurricane battering has discouraged visitors.

IN Fliers' 'e-z pass' More airports may let you apply for a faster security check.

OUT No-fly lists Too often include innocent names. A new system is coming.

IN Free Wi-Fi Access Coming to hotels, airports, even cities.

OUT Hidden hotel fees Guests hate resort "fees," etc. Hotels are listening.

IN Online packages Bundling airfare and hotel saves big money.

OUT Best-price guarantees So much fine print they are virtually meaningless.

Christopher Elliott is a travel commentator based in Orlando. All e-mailed questions may be edited, condensed or republished at the site's discretion.