If you thought last year's fares were a great deal, you ain't seen nothin' yet!

A steep decline in oil prices and surge in competition have led analysts to predict fare prices to be about 15% lower this year over last year.

So if you've had a vacation on your mind, now might be a great time to buy.

Oil prices dropping dramatically

In fact, the International Energy Agency reported that the oil market could "drown in oversupply." But on the flip side, falling oil prices definitely have positive consequences for American consumers.

Read more: Gas prices hit 47 cents per gallon in Michigan

"There's a big impact with the ongoing decline in oil prices and carriers are starting to pass that along to consumers," says Patrick Surry, research analyst at travel-data firm Hopper. He also says, "We haven’t seen fuel prices like this since 2004."

Why cost of airfare is expected to drop

Fuel comprises about 30% of an airliner's cost, so if fuel decreases in price, this undoubtedly gives companies more room for discounting and heats up the competition. Hopper says to look for better prices from February to April, with prices 15% to 20% lower on average.

Analysts also say that low-cost airlines are increasing competition by offering more options for service, according to a recent report by Expedia

 

Look for discounts on international travel, too

Don't just look for domestic flights to be cheaper -- international fares are projected to be economical also. For example, low cost international airliner Wow Air is offering flights from several major US cities to Reykjavik, Iceland, for just $99

Read more: 5 simple tricks to stretch your travel budget

Analysts also say that Europe is a great travel destination right now for those who want to travel there but who still want to save. The dollar currently has more purchasing power in Europe, and Hopper says travelers should anticipate about a 20% discount to European cities such as Paris, Athens and Milan. 

This is great news for would-be travelers who have been bound by cost constraints. Now it seems, flying is a better deal than ever! 

Read more: Best time and website for buying airline tickets