SINGAPORE: The cost of travel is becoming more expensive by the week. This is the new reality in air travel as carriers raise their fuel surcharge to cope with the escalating cost of oil, a barrel of which is now US$160 (S$220), a 60 per cent increase from January.

Aside from keeping an eye out for bargain air tickets and trawling the Internet looking for holiday deals, what is a budget conscious consumer to do when it comes to booking a holiday?

Travel agents who TODAY spoke to were unanimous in their suggestion: To get the best deals on air fares, book early. Pay immediately. This way, customers will not have to fork out for any increase in the fuel surcharge. And it will increase.

According to Ivy Tan, director of marketing communications for Chan Brothers Travel: “Since January, the fuel surcharge has risen by 10 to 20 per cent and will hit 35 per cent come July.

“For example, fuel surcharge for a return flight to Gold Coast, Australia, on Qantas has risen from $400 to $450 and to Los Angeles on Northwest Airlines from $470 to $565 while that to Japan on All Nippon Airways will rise from $380 to $516 next month.”

Since the fuel surcharge and fees are not included in the published fare - except those of Singapore Airlines - it’s not a matter of simply jumping at the cheapest tickets anymore. A S$0 airfare can cost S$150 when all the surcharges and taxes are tallied.

Albert Ho, chairman of air transport at the National Association of Travel Agents (Natas) urged aspiring travellers not to look just at the price but at the value as well. Consumers should take into account the additional goods and services - free gifts and tours, for example - that they may get by booking the holiday.

It also pays to check out the policies of travel agencies regarding the fuel surcharge.

At companies such as Chan Brothers Travel and SA Tours, although the prices of packaged tours have not changed, the fuel surcharge is a separate component that is subject to fluctuation.

But while Chan Brothers charges the same amount regardless of date of booking - with customers paying any difference in fuel surcharge before the date of travel - SA Tours’ rates are valid at the time of booking. This means that the earlier you book, the better your chance of getting the cheaper price.

Indeed, with travel expected to focus on regional destinations given the cost of flying to far-flung places, it’s not enough to book three months ahead. Finding a good deal on airfares will be that much harder now that there are more people going to the same places. Popular destinations in the region include Japan, Korea, Taiwan and Hong Kong.

“Start looking for tickets as soon as possible, even up to six months before the departure date as there will be more seats available,” said Eileen Yee, general manager of STA Travel.

The strength of the Singapore dollar shouldn’t be overlooked either when planning a holiday.

“Go where the Singapore dollar is strong,” said Eileen Oh, spokesperson for ASA Holidays. “The United States is a must-go for label-conscious Singaporeans this summer. Never mind that the fuel taxes is $100 more, you’ll make that up by shopping for branded goods at the country’s many markdowns.” One US dollar is S$1.40, compared to $1.54 a year ago.

There are other ways to stretch the travel dollar, including extending the length of the holiday to take full advantage of the airfare.

While air travel has seen eye-popping increases in surcharges, there is reprieve in the cruise industry.

Although Malaysian based Star Cruises has been affected by the recent hikes - it had to raise its fees last month - the increase was by a nominal S$1 per person per night. The fee for a four night cruise to Penang and Phuket was increased from S$32 per person to S$36.

But for travellers going by air, it’s not too early to whip out the calendar and plan that year-end vacation.

- TODAY/nt