Just as a rash of new flights start to show up in Anchorage, air fares to the affected cities are falling, falling, falling. And that is a good thing.
At a very basic level, this is Airline Pricing 101: hold out to the last minute for high fares, then drop the rates to fill the planes. At that point, the incumbent carrier (usually Alaska Airlines) matches the rate and a price war ensues.
Let's take a look at some of the best destinations for low fares:
A. Anchorage-Honolulu. Alaska Airlines has a monopoly on this route, so I'm thrilled they're offering a bargain for summertime flights. NOTE you MUST purchase these deals by 11:59pm on May 27. The all-in price for Anchorage-Honolulu is $396 roundtrip. From Fairbanks, the price to Honolulu is $456 roundtrip, all-in. Travel on Friday, Saturday or Sunday between now and Sept. 26.
B. Anchorage-Portland. Both Continental and Alaska Airlines are offering nonstop service on the route this summer. The price is just $400 roundtrip, all-in. That makes it 20 percent cheaper than Seattle. Hopefully throughout the summer, Continental will drop the price to Seattle. After all, Continental offers two flights each day between Anchorage and Seattle.
C. Anchorage-San Francisco. For just $416 roundtrip, you can fly nonstop from Anchorage to San Francisco on either Alaska Airlines or United Airlines. Both carriers will offer nonstop service all summer long.
D. Anchorage-Denver. Watch for more fireworks on this route, since three airlines are flying nonstop: United, Frontier and Alaska Airlines. Right now, the fare is pegged at $420 roundtrip all-in. I fully expect the fare to sink further as these carriers battle it out for market share.
E. Anchorage-Chicago. Another hotbed of competition, the Anchorage-Chicago route has a trio of airlines offering nonstop service: American, United and Alaska. The $459 roundtrip fare is a great deal--and I expect it to go down!
F. Anchorage-Washington, DC. What a deal! Just $460 roundtrip, all-in. Continental, Delta and USAir offer this rate. Dates can be dicey -- so you've got a better chance of snagging this fare if you're somewhat flexible.
G. Fairbanks-Denver. Yep -- this is the new service from Frontier Airlines that has brought lower fares to the Golden Heart City. Prior to Frontier's flights, the cost was more than twice that amount. Travelers in Fairbanks should be thrilled. And of course, Alaska Airlines has matched the fare, although they do not offer the nonstop flights. Alaska's flights connect in Seattle or Anchorage ... or both.
H. Anchorage-Minneapolis. This is a "creeping discount." That means that Sun Country Airlines is betting that people will pay higher prices in order to lock in their travel dates. But apparently not in June. The price has dropped to $434 roundtrip, all-in for travel between now and June 30. And yes, Delta has matched the fare.
All of these fares are moving targets. They go up and down all the time -- often more than once in the course of a day. And the rates could disappear completely, although that is unlikely. What is more likely is that we'll see more price cuts where Alaska and United compete. And I keep waiting for some bargain rates on USAir's nonstop flight to Philadelphia, Delta's nonstop to Salt Lake, Air Canada's nonstop to Vancouver, and USAir's nonstop to Phoenix. I think it's going to be a busy week for local travel agents!
Scott McMurren is an Anchorage-based travel marketing consultant who has lived in Alaska for three decades, spending much of that time traveling the far-flung corners of the state. Visit his website at www.alaskatravelgram.com.