FareCompare.com 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 U.S. 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.

FareCompare’s Approach

FareCompare analyzes more than 17 billion of itineraries daily to find the lowest available prices on existing flights. We decided to find out if the Southwest Effect can be felt on an international scale by investigating price changes on some of the airline’s new routes launched last fall: non-stops between Houston and the following eight international destinations:

Belize: Belize City (BZE)

Costa Rica: Liberia (LIR) and San Jose (SJO)

Jamaica: Montego Bay (MBJ)

Mexico: San Jose del Cabo (SJD), Puerto Vallarta (PVR), Mexico City (MEX), and Cancun (CUN)

What the Southwest Effect Means for Travelers

Which airline has the lowest price: Just because the Southwest Effect has made an impact in certain countries, it does not mean the airline has the lowest prices. Yes, sometimes Southwest might have the best deals to the Caribbean or Mexico or beyond but sometimes another airline will, or another. That’s because no single airline always has the cheapest price, which is why airfare shoppers must compare fares, and that means comparing fare of U.S. and international carriers.

Factor in the fees: When shopping for airfare, don’t forget to factor in the fees and here’s where Southwest shines: it does not charge for carry-on bags, it does not charge for two checked-bags, and it does not charge a change fee – and this is true for domestic and international flights.

Benefits for travelers: The Southwest Effect means better overall deals for U.S. travelers; for international travelers, it also means better deals plus more non-stop access to the U.S.

Southwest Effect – Is Cuba next? Expect to see more good deals to Havana once we know which airlines will allowed to fly to Cuba. Among those vying for U.S. government approval are Southwest, low cost carriers and larger airlines alike. U.S. to Cuba flights are expected to begin later this year.

The Costa Rica Star searched on FairCompare.com for airfare between Houston and the Juan Santamaria International Airport (SJO). The search parameters were for a round-trip economy class ticket for a single traveler, departing at the end of August and returning in late September. The most affordable ticket listed was less than $315.

PRNewswire Press Release