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Travel Inflation Report: April 2024

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How airfares have changed

How hotels room rates have changed, how rental car prices have changed, how restaurant prices have changed, how the price of movies, theaters and concerts has changed, if you’re planning to travel in 2024….

Some good news for travelers: Airfares are a lot cheaper than they were this time last year.

Last month, airfares were down 7.1% versus the same month in 2023. And despite the overall cost of goods increasing 22.8% since the onset of the pandemic, airfares are only up a marginal 2.6%. That’s according to the latest set of Consumer Price Index data released in April 2024 from the Bureau of Labor Statistics, which is based on March 2024 prices.

Car rental prices are also lower — down 8.8% versus March 2023. Hotel prices decreased too, down 2.4% since last year.

Falling travel prices is a bright spot for customers, considering that the price of pretty much everything else is going up. In fact, average consumer prices across all items rose 3.5% year-over-year through March.

According to NerdWallet's Travel Price Index, the overall cost of travel is down 2% from the same month in 2023 and up 15% compared with March 2019 (the last fully-normal March before lockdowns). In short, expect the same trip taken this year to cost slightly less than it did this time last year, but more than it would if you had taken the trip before the pandemic.

NerdWallet's Travel Price Index combines data from individual travel categories tracked by the Bureau of Labor Statistics' Consumer Price Index data, such as airfares, lodging, meals and rental cars.

Overall prices for the past 12 months through March 2024 rose 3.5% before seasonal adjustment. Still, not every individual line item experiences inflation at the same rate — especially when it comes to travel prices. Some types of trips might actually be more or less expensive than in the past, depending on if your trip involves airfare versus driving, if you’re staying in a hotel and whether it involves a rental car.

To help you better understand how travel prices have changed, NerdWallet honed in on five categories:

Car rentals.

Food away from home.

Movies, theaters and concerts.

NerdWallet then compared those costs to their same prices a month ago and a year ago. And given how significantly COVID-19 altered the state of travel, the data also compares today’s prices to the same cost of those things pre-pandemic. For example, March 2024 is compared to March 2019 as the last corresponding pre-pandemic month.

Here’s what today’s travel prices look like:

When comparing March 2024 prices versus March 2023, U.S. airfares are down 7.1%. Even compared to pre-pandemic prices, airfares only rose by 2.6% in March 2024 versus March 2019. That's not a lot considering average prices as a whole are up by 22.8% since March 2019.

Prices for lodging away from home — including hotels and motels in U.S. cities — did increase 6.7% month-over-month. Though, they actually decreased over the past year, falling by 2.4% versus March 2023.

Unlike airfares that are lower than pre-pandemic prices, hotel and motel prices are significantly higher than what they were pre-pandemic — though still not as high as the 22.8% all-items average increase.

High rental car prices were one of the biggest stories of pandemic-era travel. Though prices have leveled off, they are still up an astounding 39.3% versus the same month in 2019. Still, the costs are better now than they were a year ago. Car rental prices are down 8.8% year-over-year.

Food prices consistently rise nearly every month, and this month was no exception. In March 2024, the cost of food away from home was up 4.2% versus the same month in 2023.

And prices are far higher than pre-pandemic, with March 2024 prices coming in at 29.3% higher than what they were in March 2019. That's higher than the inflation rate across all items, suggesting that restaurant prices have risen more than many other categories of goods.

Like restaurants, entertainment prices see fairly consistent increases — save for a small dip in 2020. Prices are now up 22.6% from what they were in March 2019. The year-over-year price increases are up 5%.

Especially if you’re building your next vacation budget based on an early-pandemic-era trip, expect to pay far more now for pretty much every expense. Yet even though prices constantly feel like they’re getting higher, you can still save on travel with a little planning.

Paying for travel with miles and points versus cash isn’t as daunting a task as it may seem. Frequent flyer miles and hotel points can be accrued not just for recurring travel, but through other outlets as well. Credit card rewards and welcome bonuses can be one of the most popular ways to accrue a big stash of points for a lot less effort than living your life out of a suitcase.

To avoid the costs of eating out, head to local grocery stores — which can be a fun activity on its own — or pack snacks from home. While in an airport, head to the lounge. Many credit cards have partnerships with airport lounge operators ( Priority Pass is a popular one) where you can typically expect complimentary snacks and drinks.

Methodology

NerdWallet conducted an analysis of the Bureau of Labor Statistics’ Consumer Price Index data released by the U.S. Department of Labor, which was most recently updated in April 2024 and measures prices of items like travel, groceries and cars. Prices usually change every month, but some prices change more than others.

Keep in mind, this data is based on March 2024 information, even though it is released in April 2024, so prices you actually see may have actually improved (or gotten even worse) than this data, because it lags one month behind.

And even within the realm of travel, some expenses might go up, while others might go down.

The NerdWallet Travel Price Index combines data from the Consumer Price Index, weighted by the estimated spending in each category, which is based on 2019 travel expenditure data from the BLS.

Here are the spending categories considered, and how heavily each was weighted:

Flights: 29%.

Car rental: 13%.

Lodging: 30%.

Entertainment: 7%.

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Inflation is affecting travel, but that doesn't mean it's slowing down

Sarah Griffith's flight to Columbus, Ohio, last summer had a dual purpose: she wanted to see her friends and watch the band Night Ranger play.

Griffith, 50, loved the rock group growing up, and has traveled around the country to see it. "(I) started going to see them and it kind of turned things around and it just kind of became my thing," she said.

But in the wake of the pandemic, she said expensive flight costs and elevated fees for concert tickets have limited her ability to see the band, which makes up a large part of her travel plans each year. She pointed to inflation as a big contributor.

In some cases, Griffith has chosen to attend shows within driving distance, or not go at all.

"It's frustrating," said Griffith, who lives in Manassas, Virginia, and works in the front office of a dental practice. "I mean, I work hard in order to be able to pay my bills, and I'm used to having money left over that I can afford to do stuff, and that money that’s left over now doesn't go as far."

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Experts say Griffith's experience is a good example of how travelers are adjusting their behaviors to account for inflation.

"Because prices are going up everywhere, people are also deliberately choosing their destination," Trivago CEO Axel Hefer told USA TODAY. "Some are choosing attractive but not as expensive destinations," like opting to stay in Pisa instead of Rome on a visit to Italy.

"These kinds of things at the margin are happening," he added.

What does inflation mean for travelers?

Prices in most segments of the economy are going up, and it's no different in the travel sector.

However, a recent study by Deloitte suggests that people aren't shying away from getting out there despite higher prices.

"We believe it’s still looking relatively positive. There’s certainly still some pressure that we’re seeing, inflation pressure or concerns," said Eileen Crowley, Deloitte's vice chair and U.S. transportation, hospitality and services attest leader. She added that people so far do not seem to be discouraged from taking trips, but the firm plans to continue tracking how higher prices affect demand throughout the year.

In the meantime, however, she said Deloitte's research suggests travelers are being more careful about what they're willing to splurge on.

Story continues below.

"From an airline perspective: what category of seats. Do I upgrade? Do I not upgrade?" she said. "From a lodging perspective, what type of class of lodging we’ll book ... I want lodging on the beach, but perhaps I go for a lower class of lodging that’s still on the beach rather than splurge on a place with more amenities."

For their part, on recent earnings calls, airline executives largely said that demand for tickets remains strong, and many pointed to the fact that they were reporting record profits despite flying less overall than they had in 2019 – a sure sign that ticket prices are up and the market could still bear even higher prices potentially.

Are travel deals still available this year?

According to Hefer from Trivago, prices are up pretty much everywhere, but not at the same rate in all places.

"You have to stay flexible. The more flexible you are in terms of date and destination and hotel property, the easier it is for you as a traveler to mitigate the effect," he said. "You still spend more, but you don’t spend as much more as you would have if you had booked the exact same trip.'

How to find cheap cruises: What travelers should know about getting deals

Dreaming of an all-inclusive family vacation?: Here are 5 big mistakes to avoid

As an example, Hefer noted that spring break prices in Cancun, Mexico, are up 10% on average compared to last year, while the same period in Miami is around 50% more expensive overall. So, he said, travelers who are willing to go to Cancun instead of Miami for spring break may be able to spend less than they would otherwise. 

Other advice for travelers

Hefer and Crowley both emphasized that flexibility is the key to economizing on travel during inflation.

"If travelers are thinking about ways to save money, the mode of transportation to get to your trip is something they could pivot on," Crowley said. For example, taking a family road trip instead of flying somewhere.

Traveling at non-peak times, too, can help your trip have less of an impact on your wallet.

"You can get the same experience for a fraction of the money if you are very flexible on destination, a bit flexible on accommodation experience, but, in particular, the timing," Hefer said. "My advice to your readers is stay as flexible as you can and then you can have an awesome experience and you won’t have to pay the high prices you see everywhere."

Griffith, for her part, has not seen any improvement in flight prices – at least not yet.

"I'm hoping," she said.

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US travel costs surge as vacation demand ramps up from pandemic lows

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U.S. travel costs are soaring as demand reaches some of its highest points since the global pandemic began, a trend that shows little sign of stopping as summertime travel heats up.

Airline bookings in February hit their highest point since COVID-19 decimated flying in the U.S. in early 2020, while hotel occupancy is higher than it has been for most of the last two years. Combined with rising costs for labor and energy and short supplies, these factors are driving travel prices to jump by leaps and bounds, contributing to the fastest rise in broad consumer prices since the 1980s. Hotel prices, for example, rose at the fastest rate on record in February compared to a year ago, according to the U.S. Bureau of Labor statistics.

After hearing tales of dirt-cheap hotel room rates and plane tickets during the height of the pandemic, travelers expect to find bargains. Instead, they are finding vacations with jaw-dropping price tags attached, often twice what they were expecting to spend, said Robike Noll-Faries, owner of Seeitall 2 Travel, a travel agency in Paramus, N.J.

Those steep price hikes and a potentially historic surge in demand for leisure are not getting in the way of travelers' plans for summer fun, Noll-Faries said.

"People are looking at these prices and they're complaining, but it has been two years, they want to go on vacation and they're going," Noll-Faries said. "It's time."

Demand, prices rise

The number of U.S. air passenger trips for domestic and international flights in February was 19.9 million, according to data from the Airlines Reporting Corp., which tracks more than 200 airlines and more than 10,000 retail travel agencies. It was the most trips since the pandemic began, while still below the 24.9 million trips in February 2020, it was well above the 2.2 million at the industry's low in April 2020. Airline fares have reflected this increase in demand, with the average, domestic roundtrip ticket price rising to $464 in February, from $346 a year earlier.

Airlines still lag pre-pandemic capacity levels, with total March seating trailing 2019 levels by 8% for domestic flights and 24% for international flights, according to aviation industry analytics company OAG. Seating levels, however, are at or near their highest point since March 2020.

U.S. hotel occupancy hit 66.9% for the week ending March 19, according to industry data and analytics company STR. That is the highest level since August 2021 and above rates throughout 2020 and much of last year. The average daily room rate for a U.S. hotel room was $137.39 in February, up from $98.31 in February 2021, according to STR, which measures the metric by dividing total revenue by the number of rooms sold.

The rise in prices has yet to deter buying, said Vivek Pandya, a senior digital insights manager at Adobe who has done research on airline travel demand.

"At the moment, the desire to travel is really strong and that's propelling continued bookings in the midst of higher prices," said Pandya.

Demand, and prices, will continue to rise as the summer travel season nears, as COVID-19 cases come down and attitudes around the health risks soften, Pandya said . But several factors, notably a rise in cases of COVID-19 variants, could upset that trajectory.

"It is a pretty volatile environment so it's very difficult to predict," Pandya said.

Travel at Best Western Hotels and Resorts, which has nearly 2,000 locations in the U.S., is exceeding 2019 occupancy levels this year, especially on Fridays and Saturdays, said Larry Cuculic, president and CEO of Best Western Hotels and Resorts and its parent company, BWH Hotel Group.

"We are optimistic that pent-up demand will result in strong spring and summer seasons with business travel beginning to return to a level of normalcy in the latter half of 2022," Cuculic said in an email.

'Degree of acceptance'

Russia's invasion of Ukraine drove up costs for fuel, with the average price for a gallon of gasoline at $4.23 as of March 31, a rise of more than 60 cents in a month, according to AAA. The war may also dampen some U.S. travel to the euro area, potentially hiking demand for domestic high-end resorts, s aid Bram Gallagher, a senior economist with CBRE Hotels' Americas Research.

A sharp jump in gas prices or hotel lodging costs are unlikely to upend spending on trips, particularly for more affluent travelers, said Chris Woronka, a leisure and lodging analyst with Deutsche Bank. This has allowed higher-end hotels and resorts to easily pass on increased costs to customers.

"When everything is going up there can even be a degree of acceptance," Woronka said.

Still, like much of inflation's impact, higher prices are likely to hit more budget-conscious travelers harder. This could eat into demand for less expensive roadside motels this summer.

"Everybody has a budget," Woronka said. "If gas stays high or goes higher, with all these other costs increasing … at some point you're going to have a subset of customers say, 'Look, I just can't do this trip.'"

Rising costs

A shortage of semiconductors has curbed the production of new cars, which is driving up the costs of rental cars as businesses look to secure new and used vehicles.

Hotels, meanwhile, are facing multiple cost increases, but none more than labor costs, as a worker shortage has forced the industry to raise wages. In February, there were nearly 1.7 million job openings in the leisure and hospitality sector and hourly wages were at $19.68 in March, up from $16.31 pre-pandemic, according to the Bureau of Labor Statistics.

This has compelled many hotels to keep staffing levels relatively low, leaving some rooms unsold due to a lack of workforce.

"This is a labor problem," said Gallagher of CBRE. "A lot of hotels are going to have to decide, 'How full do I actually want my hotel? Can I afford the costs of labor?' That may stymie demand."

Hotels, so far, have "seamlessly," passed on higher costs to consumers, said Smedes Rose, a director at Citi who focuses on lodging, gaming and leisure companies. It is unclear, though, how long hotel customers will accept paying more for a room at a hotel with fewer staff and amenities. For now, these hotels are looking at their budget plans and almost starting from scratch. Management positions that were eliminated in 2020 may never come back. Some services that were put on pause may never return.

"It's probably pretty complex, but rarely do you have the opportunity to shut down and have zero revenue and zero costs and then just rebirth an industry," Rose said.

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A year out from peak inflation, travel and leisure (mostly) cost less

It took a while, but people are just about done catching up on experiences lost during the pandemic.

While a minority of high-dollar travelers are still confronting — and paying — four-figure airfares to Paris and Tokyo, prices are finally falling across the leisure economy, the last several months of federal data show.

That’s good news for consumers, as well as economists and policymakers seeking reasons for optimism that the economy can regain its footing without sliding into a recession.

Consumer Price Index figures released Wednesday morning showed airfares down 19% in June from last year and car rental rates down 12%, for their fifth consecutive month of declines. Food away from home, which includes restaurant meals, continued to rise, but the category’s annual growth rate of 7.7% in June slowed from 8.8% in March. Ticket prices for sporting events ticked up last month, but the rise came after three straight months of declines.

“It’s the consumer getting to the end of their ‘revenge spending,’” said Skanda Amarnath, the executive director of the macroeconomic policy group Employ America.

The downtrend comes one year after inflation peaked at a four-decade high of 9.1% in June 2022, as consumers poured money into the services sector.

Early in the coronavirus pandemic, homebound consumers raced to scoop up physical goods like exercise bikes, household appliances and pajamas to work from home in, even as supply-chain bottlenecks pushed up prices and delayed deliveries. But as the economy reopened and more people ventured back out, pent-up demand shifted toward travel and leisure , driving up prices at bars, hotels and airlines that were often paying more for hard-to-find workers.

Now, with inflation slipping to 3% in June and consumer confidence hitting its highest level since January 2022, economists increasingly see signs of a return to normal.

Deutsche Bank Chief U.S. Economist Matthew Luzzetti said he still foresees a mild recession this year, expecting further pullbacks in consumer spending and bank lending. But “at the moment,” he said, “consumer spending does not look recessionary.”

Not everybody is tightening their belts in the same ways. While many have been taking shorter, cheaper trips closer to home this summer, overall travel demand remains high. A recent Bankrate survey found 63% of U.S. adults have traveled or plan to travel for leisure this year, up from 58% last year.

At the same time, the share of those citing higher prices as a top problem ticked down to 53% this year from 57% last year, possibly reflecting lower costs for gas, airline tickets and rental cars.

Some travel costs remain steep, though, and high-income vacationers are spending anyway.

Bankrate found about 85% of households making more than $100,000 a year reported leisure travel plans this year. And many of them are increasingly shifting their sights from domestic hot spots to international destinations.

Americans who are traveling abroad this year boast an average household income of nearly $110,000 , compared to less than $83,000 among U.S. travelers overall, according to the consultancy Destination Analysts. Overseas jet-setters also have more vacation time to burn and stronger financial security than the average U.S. traveler, the group found.

Strong demand for high-dollar foreign getaways is driving up prices for trips abroad. AAA said in the spring that international flight bookings were up more than 200% since last year. The flight-booking platform Hopper said in May that average airfares to Europe and Asia each jumped by more than $300 since last summer, to over $1,100 and over $1,800 per ticket, respectively.

By contrast, domestic airfare averaged just $306 a ticket, down 19% from the year before.

To accommodate the strong demand, United Airlines has said it will grow its international network at twice the rate of its domestic network this year. Delta Air Lines executives told investors in April that they expected record revenue and profitability on their international routes this summer.

The federal government’s inflation gauges mainly reflect domestic consumption, which means vacationers’ splurging overseas won’t buoy inflation readings at home.

“We don’t see it as much in the domestic data because more of that money is being used on the international side of things,” said Omair Sharif, the founder and president of Inflation Insights. In fact, Sharif said he expects domestic airfare to continue falling through the summer, even as international travel picks up.

In the meantime, consumers who are staying within the U.S. continue to have more affordable options for spending during their downtime.

Last month, Darden Restaurants, which owns the Olive Garden and Longhorn Steakhouse, reported a decline in visits from lower-income households compared to last year, along with slower alcohol sales. But both measures remain above pre-pandemic levels, hinting at a return to more normal patterns.

At the Cracker Barrel, executives recently flagged a “noticeable drop in traffic,” with Chief Financial Officer Craig Pommells telling investors on June 6, “We believe some of our more price-conscious guests may be reducing their retail purchases as a way to manage their overall spend when dining with us.”

Amusement parks have also taken a hit. The Wall Street Journal reported this week that traffic to Disney’s U.S. parks has slowed this summer, shrinking line-waiting times during Independence Day weekend to near-decade lows.

Softer but not collapsing demand is right in line with what Federal Reserve officials hope to achieve with their campaign of interest rate increases, which they paused last month .

With inflation still running hotter than the Fed’s target of 2%, the central bank is expected to again lift interest rates at the end of the month, keeping borrowing costs high for mortgages, credit cards and car loans. Consumer spending, which accounts for about 70% of total U.S. economic activity, will have to cool further to help nudge inflation to that target.

But economists and Fed officials also don’t want it to crater and lead to a “hard landing,” in which a pullback in economic activity pushes employers to lay off workers en masse. If, for example, fewer travelers buy plane tickets or dine out, employers like airlines and restaurants might drop workers to cut costs.

Jobs data released Friday showed no signs that is happening at the moment, with both industries continuing to add workers. The national unemployment rate, at 3.6%, is still hovering near 50-year lows.

Brian Cheung is a business and data correspondent for NBC News.

Americans are still worried about affording holiday airfares despite slowing inflation

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Inflation caused the price of travel to skyrocket last holiday season, but in 2023, people can expect some relief. Airfare and other travel costs are cheaper this year than they were in 2022, but despite lower inflation, high prices may still be a problem for many Americans during holiday travel.

The percentage of holiday travelers who say their plans will strain their budgets remains relatively unchanged since last year: from 32 percent in 2022 to 31 percent in 2023, according to Bankrate’s holiday travel survey. The percentage of holiday travelers changing something about their plans as a result of inflation or high prices also remains high: from 79 percent in 2022 to 77 percent in 2023.

Despite high prices, the holidays don’t have to be a hit to your budget. Here’s how you can expect inflation to impact your plans — and how you can alleviate financial pressure to enjoy the time with people important to you.

Even though travel prices have come down a bit from last year, there’s a significant cumulative effect to the high inflation and high interest rates that we have experienced the past two years. — Ted Rossman | Bankrate Senior Industry Analyst

Key Bankrate statistics on travel inflation

• Inflation is making a big impact on holiday travel. 77% of holiday travelers are changing their plans in 2023 due to inflation and rising prices.
• Travelers are commonly driving to cut costs. 27% of holiday travelers will drive instead of fly to their destination, due to inflation and rising prices. Additionally, 23% are taking fewer trips and 23% are selecting less expensive accommodations and/or destinations.
• Lower-income people are driving more. 32% of holiday travelers with an income under $50,000 per year are driving instead of flying to their destination, more than any other income bracket.
• Americans are struggling to make holiday travel work in their budgets. 31% of holiday travelers say the upcoming holidays will put a strain on their budget and 25% worry they’ll feel pressured to spend more than they’re comfortable. 27% are worried their travel plans could be disrupted by airline delays or cancellations, weather, extra lodging expenses, lost luggage or other reasons.

How inflation in 2023 is impacting travel costs

Airports may be a little more crowded this year: Nearly half (48 percent) of U.S. adults are planning an overnight leisure trip this holiday season, up from 43 percent of U.S. adults in 2022, according to Bankrate’s holiday travel survey.

“We’re still seeing a lot of post-pandemic demand for experiences such as travel , dining and concert tickets,” Bankrate Senior Industry Analyst Ted Rossman says. “When people are splurging these days, it’s much more likely to be on experiences than physical goods such as electronics and furniture.”

Increased demand also means increased spending. Americans are projected to spend $731 billion on domestic leisure travel this year, up from $718 billion in 2022, according to the U.S. Travel Association . While key vacation expenses are still expensive, prices aren’t increasing as fast as they did in 2022.

Airfare inflation fell 5.5% since COVID-19 began, but other travel expenses ballooned

At its peak in June 2022, the inflation rate was 9.1 percent year-over-year, according to the U.S. Department of Labor’s Bureau of Labor Statistics (BLS) , which dwindled to 3.7 percent in August 2023. Though the inflation rate has decreased significantly since 2022, it’s still higher than before COVID-19. The inflation rate was 2.3 percent in February 2020, according to the BLS .

The inflation rate of airfare decreased 13.3 percent between August 2022 and August 2023, and the inflation rate for car and truck rentals decreased 6.8 percent, according to the BLS. While the inflation rate for lodging away from home, such as at hotels, increased 3 percent year-over-year as of August 2023, hotel prices aren’t as high as they were in the summer .

Travelers may still notice the effect of inflation when they book hotels and buy gas for a road trip. The inflation rates of lodging away from home and gasoline have grown tremendously since February 2020 (notably, the inflation rate of gasoline rose 46.1 percent). However, the inflation rate of airline fares actually decreased 5.5 percent:

Inflation rate percentage change

Falling inflation on airline tickets means the average flight now costs less for domestic holiday travelers than it did in 2019. In dollars, Americans booking a domestic round-trip flight in September for Thanksgiving 2023 can expect to spend $268 on average, according to travel booking site Hopper , 7 percent less than the cost of the same ticket in 2019.

Thanksgiving airfare is down 14% from 2022

Americans lept at the chance to take trips again after COVID-19 lockdowns lifted, but travel demand has now somewhat normalized. Travelers booking domestic airline tickets in September for Thanksgiving 2023 will pay, on average, 14 percent less than they would have paid last year. Rental cars are $42 on average per day, a 17 percent decrease year-over-year. Hotel prices around Thanksgiving, however, are expected to be slightly more expensive year-over-year: $206 per night, an 8 percent increase:

Average cost of Thanksgiving travel expenses

For winter holiday travelers, buying a plane ticket for a domestic round-trip flight is $400 on average, a 29 percent increase since 2019 and a 12 percent decrease since 2022. Rental car prices around Christmas have remained unchanged; the cost was $53 per day in both 2023 and 2022. Hotels are averaging $233 per night, a 6 percent increase since 2022:

 Average cost of winter holiday travel expenses

Travelers booking an international trip are in for the highest price increases. Expect to see a 69 percent average increase between 2019 and 2023 on winter flights to Europe and an eyewatering 74 percent average increase on flights to Asia, according to Hopper.

Nearly 1 in 3 lower-income households are driving instead of flying due to flight prices

Thanksgiving flights may be cheaper this year, but the $268 price tag may still be too high for many Americans .

While wages are catching up to inflation , many Americans are still feeling the impact of high prices. Between the beginning of 2021 and the second quarter of 2023, inflation rose 15.8 percent, while wages rose 12.8 percent, according to BLS data analyzed by Bankrate.

“With people paying so much more for rent, food, gas and more, there’s less disposable income to go around,” Rossman says. “The excess savings that many households built up during the pandemic is all but gone at this point, and the resumption of student loan payments is another headwind.”

Holiday travelers who make under $50,000 per year are most likely (86 percent) of any income bracket to change their plans due to inflation or rising prices this year, according to Bankrate. The higher a household’s income, the less likely they’re changing their plans:

• Under $50,000 per year: 86 percent
• $50,000-$79,999: 78 percent
• $80,000-$99,999: 68 percent
• $100,000 per year or more: 69 percent

Holiday travelers making under $50,000 a year are also the most likely of any income bracket (32 percent) to drive instead of fly this year due to inflation or rising prices.

Source: Bankrate survey, September 12-14, 2023 *Of U.S. adults planning on an overnight leisure trip this holiday season

However, middle-income holiday travelers are also affected by high prices: Holiday travelers making between $50,000 and $74,999 are the most likely income bracket (27 percent) to engage in cheaper activities during their holiday plans due to high prices.

Household incomes, if they continue to rise at their current pace, aren’t expected to recover from loss of total purchasing power until the fourth quarter of 2024, according to Bankrate’s new Inflation to Wage index. An uncertain economy could have long-term impact on travel, according to Rossman.

“It stands to reason that this pent-up demand could fade, especially if high inflation, high interest rates and other economic worries persist,” Rossman says.

4 ways to save on travel in 2023 and 2024

It’s normal to be worried about travel spending during economic uncertainty, but there are ways to take advantage of discounted tickets and bundles, even if you don’t have a credit card with rewards points. Here are four ways to help save on travel in 2023 and 2024:

1. Book tickets strategically

• If you’re planning on booking airline tickets, book them as soon as possible. The best time to book airline tickets for the holiday season is by Oct. 14, according to Hopper.
• Additional tip: Try to book your flight for an atypical day, such as the Monday ahead of Thanksgiving instead of the weekend.

2. Utilize fare-tracking apps

• Plenty of apps like Hopper, Skyscanner, Kiwi.com and more help you not only get the best deal on a flight, but can also help you book hotels or rental cars.
• Additional tip: Many apps will also allow you to examine when flight costs might go up and when is the most expensive time to fly, allowing you to get the most competitive price.

3. Use your credit card for deals

• Choosing the right travel card can help you take advantage of a lot of different deals on flights, hotels, gas and more.
• Some of the best travel credit cards of 2023 can help you earn flight miles and travel insurance, or even give you access to airport lounges.

4. Learn how to travel hack

• Travel hacking allows you to “hack” flights and hotels, allowing you to redeem points for travel.
• Even if you don’t want to use a credit card , you can get extra points by using shopping portals, dining rewards and taking advantage of mistake fares, or fares that have been priced below market value due to a mistake from the airline.

Bottom line

If you’re thinking of booking tickets to travel this holiday season, now is the time. Prices will only continue to climb, and your budget may be stretched if you wait. If you think you might be unable to see your out-of-state family or have the vacation of your dreams this year, perhaps wait until next year when you can book those tickets well in advance.

Travel costs aren’t set in stone, and they’re even more uncertain going into next year. However, with a combination of travel points and tricks, as well as thoughtful planning, you can get a well-deserved vacation after the hectic last several years.

Methodology

All figures from the study on holiday travel, unless otherwise stated, are from YouGov Plc. Total sample size was 2,419 US adults. Fieldwork was undertaken between 12th – 14th September 2023. The survey was carried out online. The figures have been weighted and are representative of all US adults (aged 18+). The survey was carried out online and meets rigorous quality standards. It employed a non-probability-based sample using both quotas upfront during collection and then a weighting scheme on the back end designed and proven to provide nationally representative results.

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Fuel Prices Send Airfares Higher, but Travelers Seem Ready to Pay

Supplies are not keeping up with demand, and costs may go higher, experts say.

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By Niraj Chokshi and Clifford Krauss

A stunning rise in the cost of jet fuel has sent airfares soaring, and industry experts say they are likely to go higher. For now, though, travel-starved consumers seem more than willing to pay up.

Jet fuel prices have settled somewhat since Russia’s invasion of Ukraine sent them skyrocketing last month, but the market remains extremely volatile. The problem is particularly severe in New York, where the cost of the fuel rose about fourfold to just over $7.50 a gallon before dipping back to $5.30 in recent days.

Supply is broadly constrained and prices have spiked across the country. The Energy Department this week said that the inventory level for East Coast jet fuel stood at 6.5 million barrels, the lowest since the agency began keeping track in 1990.

“Jet fuel has made the most parabolic move I’ve ever seen for any transportation fuel,” said Tom Kloza, global head of energy analysis at Oil Price Information Service. “It’s just insane.”

The surge in prices has implications not only for airfares but also for the already high costs of global shipping. On Wednesday, for example, Amazon announced plans to impose its first “fuel and inflation surcharge” for sellers whose goods it stores and delivers.

Airlines have been able to pass on some of their added fuel expense to consumers, many of whom are more than eager to travel after being denied the opportunity for two years.

At the start of this year, the average cost of a round-trip domestic flight was $235, according to Hopper, an airfare-tracking app. Since then, ticket prices have risen 40 percent, to $330. Adit Damodaran, an economist at Hopper, which tracks prices for flights and hotels, said the company expects another 10 percent rise, to $360, by the end of May, before prices drop again in the summer.

“Not only are the current prices that travelers are paying extremely high compared to historic price data, but the rate of increase has also been particularly steep since January,” he said.

In addition to the rising cost of jet fuel, Mr. Damodaran said, the surge in airfares can also be attributed to typical seasonal patterns and the fact that demand was suppressed at the start of the year as the Omicron coronavirus variant spread.

Some airlines have also cut flights in response to persistent staff shortages, creating greater competition and driving up fares for the flights that remain.

Carriers typically pass on to consumers as much as 60 percent of a volatile rise in the price of fuel, experts said, a process that usually takes months. This time, however, the industry has been able to pass along costs more quickly, in large part because of high demand and a shift in consumer behavior during the pandemic toward buying tickets closer to the date of travel.

“We are successfully recapturing a significant portion of the run-up in fuel,” Ed Bastian, the chief executive of Delta Air Lines, told investment analysts and reporters on a call on Wednesday. “This is occurring almost in real time, given the strong demand environment.”

Mr. Bastian said that Delta, the first major carrier to report financial results for the first three months of this year, had seen a strong rebound so far and that it was preparing for a robust spring and summer.

Delta paid an average price of $2.79 per gallon of jet fuel in the quarter, up 33 percent from the last quarter of last year. The price included a saving of 7 cents per gallon from the airline’s oil refinery outside Philadelphia. Delta said it expected the price of fuel to rise another 15 to 20 percent over the next three months, to between $3.20 and $3.35 per gallon, a range that includes an approximately 20-cent savings attributable to the refinery.

Prices for jet fuel, like gasoline and diesel, generally go up and down with crude oil.

In February, American Airlines reported that the price it paid per gallon of jet fuel had risen more than a third over the past year, from $1.48 in 2020 to $2.04 in 2021. At the time, it said that each sustained one-cent rise in the per-gallon price would increase its fuel expense for 2022 by about $40 million. This week, American estimated that it had paid $2.80 to $2.85 per gallon in the first quarter of the year.

Rising fuel costs and fares seem to be doing little to dissuade consumers. Mr. Bastian said Wednesday that March was Delta’s best sales month ever, beating a record set in 2019, despite having 10 percent fewer seats available. That comes as fares for domestic flights were up about 20 percent across the board between March 2019 and March 2022, according to an analysis by the Adobe Digital Economy Index, which draws on online sales from six of the top 10 U.S. airlines.

“We’ve all been stuck at home for two years, and I think now that we have the opportunity to get out, there’s going to be a lot of willingness to pay,” said Joe Rohlena, lead airline analyst for Fitch Ratings. “If it remains expensive to travel further out, then you may see that kind of willingness to pay higher ticket prices back off.”

The pandemic severely diminished air travel, so it was no surprise that jet fuel prices plunged even more deeply than those for gasoline two years ago. In most of 2020, as the pandemic throttled transportation of all kinds, American refineries slashed their output of jet fuel — usually a reliable profit-maker — by as much as a million barrels a day.

But even in a business as cyclical as refining, the recovery for jet fuel has been remarkable.

Richard Joswick, head of global oil analytics at S&P Global Commodity Insights, said pipeline flows of jet fuel, though increasing, had not kept up with demand.

A few shipments that were supposed to go to New York this month were redirected through the Panama Canal to Los Angeles as California fuel prices began to climb. Other fuel was redirected to Baltimore and Washington as supplies there ran short.

“It’s like a water balloon — you squeeze it one place, it bulges out someplace else,” Mr. Joswick said.

Experts are predicting price spikes in the Rocky Mountain region and the West Coast as the summer travel season reaches its peak in July and August. Stockpiles are also low elsewhere in the country, with many airports stocking only a three-day supply, jeopardizing schedules if there is a bad-weather event like a hurricane.

Refineries produce jet fuel from the same batch of oil as diesel, and refineries are producing as much diesel as they can. Europe has curtailed its purchases of Russian diesel since the invasion of Ukraine, and instead imported more diesel from the United States, even as truck and railroad traffic has recovered here.

Refinery closings in Europe and North America in recent years have been another contributing factor. Since January 2019, refinery capacity has declined 5 percent in the United States and 6 percent in Europe, according to Turner, Mason & Company, a consulting firm in Dallas.

John Auers, Turner, Mason’s executive vice president, said it was hard to produce more jet fuel when the market was demanding more diesel, and equally hard to produce more diesel when the market was demanding more jet fuel. “People are traveling, driving and flying, and there is more commerce, so we’re going to have a tight market,” he said.

While the higher jet fuel costs have hurt airlines and consumers, refinery executives are happy for the extra business after two years of scant profits.

“Travel is up and demand for fuel is up, and with the Russian invasion impacting prices, fortunately or unfortunately, it bodes well for oil companies and jet fuel producers,” said Linda Salinas, vice president for operations at Texmark Chemicals, a Texas company that produces renewable jet fuel out of undistilled diesel made from used cooking oil and waste.

Niraj Chokshi covers the business of transportation, with a focus on autonomous vehicles, airlines and logistics. More about Niraj Chokshi

Clifford Krauss is national energy business correspondent based in Houston. He has spent much of his career covering foreign affairs and is a graduate of Vassar College, the University of Chicago and Columbia University. More about Clifford Krauss

Ask Skift: Why Has Travel Gotten So Expensive?

Rashaad Jorden , Skift

July 17th, 2023 at 2:00 AM EDT

Travel is booming this summer despite flights and hotels becoming pricier for many consumers, and here's a look at a few reasons why trips aren't getting cheaper.

Rashaad Jorden

Travelers who made plans to hit the road this summer will likely notice the price of travel has gotten more expensive — in some cases, so expensive that many have decided to make changes to their planned trips . So why have hotel rates and airfaires increased from 2019 levels?

We turned to Ask Skift , our artificial intelligence chatbot, for answers to the question. Ask Skift used information appearing in our daily news stories, Skift Research and Airline Weekly. Here are the responses Ask Skift provided as well as more information we found about the reasons travel has gotten pricier.

Booming Travel Demand

Ask Skift said:

Travel has become more expensive due to a combination of factors. There is a strong demand for travel as people are eager to make up for time lost during the pandemic. As easyJet CEO Johan Lundgren stated in May 2023, “Travel is the only discretionary expense people are prepared to maintain or increase,” indicating a high consumer desire for travel experiences over goods.

The desire for travel, which grew during the pandemic, remains strong. This increased demand has led to a surge in travel rates, with costs now higher than before the pandemic .

What else you need to know:

Skift Research revealed in its U.S. Travel Tracker: Q1 2023 Highlights report that while roughly 70% of U.S. travelers surveyed had experienced higher travel prices while booking their personal trips, only about 5% of respondents said they would or had cut their travel spending.

Spending by overseas visitors to the U.S. has also been surging . International inbound travelers spent close to $16.8 billion on travel to, and tourism-related activities within, the U.S. in March 2023 — a 49% year-over-year increase.

As for the willingness of consumers to spend more on travel, travel organization AAA found that despite travelers paying between 40% and 50% more for flights this summer compared to last year, bookings hadn’t slowed down. Indeed, the TSA screened more than 2.8 million passengers on June 30 , the most ever on a single day.

Sky-high travel demand is one of the reasons airfares to and across Europe have risen between 15% and 50% for flights this summer. Italy’s Minister of Enterprises Adolfo Urso called out Italian airlines earlier this month for hiking airfares in response to the country’s travel boom, increases he argued weren’t “justified even by inflation.”

Moreover, economic uncertainty and inflation are impacting travel costs. A survey by the European Travel Commission in July 2023 highlighted that 24% of European travelers were concerned about the overall rise in trip costs , leading many to seek more affordable experiences or consider off-peak travel. Similarly, a survey by The Vacationer in June 2023 found that almost 64% of US travelers said surging prices were affecting their travel plans .

Senior Hospitality Editor Sean O’Neill wrote last month that the hotel sector has seen huge spikes in nightly rates compared to post-pandemic lows, “as rises in demand collided with strained supply from properties struggling to find and keep workers.”

Hotel rates in the U.S. rose 1.8% in May 2023 from the previous month, according to the U.S. Bureau of Labor Statistics. Rates this May were also 3% higher from the same month last year.

Travelers have seen hotel rates surge in part because the cost of operating hotels has risen. Senior Research Analyst Seth Borko reported everything from fuel and heating to wages, to food costs, to laundry supplies has gotten more expensive.

“The inflation data suggests that most hoteliers are increasing their prices to keep pace with their rising costs,” he wrote.

However, the U.S. Department of Labor’s monthly Consumer Price Index report for June revealed inflation only went up 3% , the lowest level since March 2021 . The slowdown in inflation is causing airfares to drop — the average airfare fell 8.1% in June from May and 18.9% compared to June 2022.  

Airlines’ Surging Operational Costs

One reason is the increased operational costs for airlines due to changing travel patterns post-pandemic. As airlines adjust to the “new normal” by cutting flights, revamping networks, and increasing passenger capacity, these changes have led to increased operating costs and affected revenue.

American Airlines and United Airlines cut flights this spring in part because of an ongoing pilot shortage , an issue that has hit regional carriers in the U.S. hard, as well as aircraft delivery delays. Edward Russell, editor of Skift publication Airline Weekly, reported those difficulties — as well as the industry’s continued air traffic controller shortages — translates to a market where travel demand outstrips the supply of seats and airfares continuing rising.

American and United — as well as Delta Air Lines and JetBlue Airways — said earlier this year that the shortage of air traffic controllers was the reason they all cut flights in the New York City area this summer. The Federal Aviation Administration admitted in March it expected air traffic controller staffing to only be about 54% of required levels in the region.

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Tags: airfares , ask skift , inflation , Summer Travel Demand , travel inflation , U.S. travel demand

Photo credit: The rising cost of travel has been a source of frustration for many. Alina Rosanova / Getty Images

clock This article was published more than  2 years ago

Vacations are painfully expensive now, but you can spot ways to save

Prices for flights, hotels and gas are all on the rise.

More than two years into the pandemic, vacationers are making travel plans with renewed zeal. But because of a number of economic, logistical and geopolitical issues, a summer getaway will come at a steep, painful price this year.

Crowds are driving up demand as travel companies continue to deal with labor shortages . Fuel prices set record highs and have fallen only slightly. Rental car shortages persist . And inflation is hitting every part of a traveler’s budget.

“You’re going to be in for some sticker shock,” warned travel analyst Henry Harteveldt, president of Atmosphere Research Group.

Everything you need for the return of travel

Sally French, a travel rewards expert at NerdWallet , has been analyzing the impact of inflation on common travel expenses — including rental cars, hotels, food and entertainment such as movies and concerts.

“Definitely every single category is more expensive now than it was this time last year,” she said.

Here’s a breakdown of where travel expenses stand, what people should expect as they plan summer trips and how they might save a few bucks.

Flights: Up 12.7 percent from February 2021

According to consumer price index data released by the Bureau of Labor Statistics, airline fares were up 12.7 percent in February compared with the previous year, but down more than 14 percent compared with 2019.

“People have short-term memories,” French said. “They just remember ‘Last year, I got this awesome flight deal.’”

At the beginning of April, travel booking app Hopper said domestic airfare was averaging $330 for round trips, which is 40 percent higher than at the start of the year. For international trips, the average was $810, up from $650 at the beginning of the year.

The company expects those prices to keep rising, forecasting domestic airfare to reach $360 for a round trip through May. International airfare is expected to peak at $940 in June.

Airports are slammed. Here are 6 ways to manage the chaos.

Hayley Berg, head of price intelligence at Hopper — which uses different data than the Bureau of Labor Statistics — said its calculations show domestic airfare is even higher than pre-pandemic figures: up from 2019 by 7 percent.

Harteveldt said several factors are pushing prices up this year, including strong demand, the higher price of jet fuel and trimmed capacity.

“Airlines have been very clear that they intend to not only raise prices, but take other actions to help them recoup most of the higher energy prices they’re paying,” he said.

Budget advice: Harteveldt said new low-cost airlines such as Breeze Airways or Avelo Airlines could provide lower fares than their competitors if their routes match a traveler’s needs. He suggested looking for deals that bundle airfare and lodging in a package, which can lower the total price of a trip. For those with trip flexibility, there is the option of putting off a summer trip to the less-expensive early-fall season.

Berg said travelers also might want to opt for international trips with a lower price tag, choosing Mexico or Central America over Europe to save several hundred dollars.

“If travelers are willing to reconsider their destinations, they can spend less than they have in previous summers even though prices are higher,” she said.

The busiest wedding year in decades is upon us. Here’s how to save on travel.

Hotels: Up 40 percent from March 2021

Travel research firm STR said the average daily hotel price in the United States between March 1 to 26 was $147.15. That is significantly higher than the same time last year, when average rates were nearly $105, and higher than 2019, when the average nightly stay was $132.56.

Carter Wilson, STR’s senior vice president of consulting, said last summer was already record-breaking. He said labor shortages and higher wages are also pushing rates up this year.

“Any kind of destination that normally caters to leisure demand did phenomenally last summer,” he said. “That has kind of continued unabated.”

Budget advice: Wilson said higher prices won’t be spread around equally, especially as business travel takes longer to recover.

“If you’re looking to stay in a major urban market at a convention center hotel, that’s going to be more reasonable to find a room at than a resort,” he said. “Those urban cores that rely on international demand and major conventions and business demand are still trying to make inroads.”

Harteveldt said travelers are better off shopping directly on hotel brand websites rather than price-comparison sites because that’s where they’ll find discounts for things such as membership in AAA.

‘Is there still a rental car shortage?’ Your travel questions, answered.

Airbnb and Vrbo: Up 13 percent from February 2021

Short-term rentals are also commanding higher rates, according to AirDNA , which tracks the performance of millions of properties on Airbnb and Vrbo. The company said average daily rates in the United States in February were nearly $273, up 13 percent compared with last year and 32 percent from 2019. In late March, AirDNA said summer rates so far were about 5.5 percent higher than last year.

Budget advice: French recommends people take advantage of a kitchen or kitchenette so they can grab food at a grocery store and avoid eating at a restaurant for every meal.

Rental cars: Up 19 percent from March 2021

In mid-March, Hopper said rental cars had been averaging about $83 a day, up 19 percent from the same time in 2021. Industry watchers expect to see demand surge — and prices follow — this summer.

“The current situation is that rental car companies will still be charging higher prices simply because the supply has not met the demand,” Mike Taylor, head of the travel and hospitality practice at J.D. Power, told The Washington Post last month.

Budget advice: Considering the cost of rental cars and gas, French said she might avoid a road trip this year. She suggested flying to a destination with good public transportation instead. But if someone must have a rental car, she and other experts recommend searching for that first to avoid any unwelcome surprises around price or availability.

“Book the rental car first because that’s going to be the most surprising part of your trip,” she said.

How to save money on road trips as gas prices soar

Gas: Up 45 percent from April 2021

According to AAA , the national average price of a gallon of regular unleaded was just over $4.16 on Wednesday, compared with about $2.87 a year ago. Prices have ticked down in recent weeks after reaching record highs in March, but gas is still potentially a major line item in summer road trip budgets.

Budget advice: Road trippers should take advantage of apps such as GasBuddy or tools such as Waze and Google Maps that can locate cheaper gas. Costco members can also purchase the chain’s discounted fuel.

The Washington Post broke down other ways travelers can save on road trips despite high fuel prices here .

Cruises: Not sailing at this time last year

The world’s largest cruise operators have said that they are seeing strong prices — in some cases, higher than 2019 — in the second half of 2022. U.S. cruises weren’t even sailing at this time a year ago; they started to return last summer after suspending operations for more than a year because of the pandemic.

David Crooks, senior vice president of product and operations for cruise seller World Travel Holdings, said in an email that cruise prices this year and next still look like a good deal because of “significant increases in land-based alternatives.”

“With the CDC lifting its Travel Health Notice for cruises, a strong pent-up demand, and stringent cruise line health protocols combined with low pricing, consumers are recognizing the value of cruising, and demand is coming in very strong,” he said.

Budget advice: Booking in the fall instead of peak summer dates in the Caribbean will save money (but will also mean taking a cruise during the historically busier part of hurricane season). A seven-day Eastern Caribbean cruise on a new Carnival ship, for example, costs $1,169 a person for a balcony room when it departs on July 10. When the ship leaves for the same itinerary on Sept. 24, a balcony room is priced at $839 per person.

More travel tips

Vacation planning: Start with a strategy to maximize days off by taking PTO around holidays. Experts recommend taking multiple short trips for peak happiness . Want to take an ambitious trip? Here are 12 destinations to try this year — without crowds.

Cheap flights: Follow our best advice for scoring low airfare , including setting flight price alerts and subscribing to deal newsletters. If you’re set on an expensive getaway, here’s a plan to save up without straining your credit limit.

Airport chaos: We’ve got advice for every scenario , from canceled flights to lost luggage . Stuck at the rental car counter? These tips can speed up the process. And following these 52 rules of flying should make the experience better for everyone.

Expert advice: Our By The Way Concierge solves readers’ dilemmas , including whether it’s okay to ditch a partner at security, or what happens if you get caught flying with weed . Submit your question here . Or you could look to the gurus: Lonely Planet and Rick Steves .

Summer travel trends 2024: More crowds and expensive airfare, hotels

Travel troubleshooter.

Summer travel in 2024 will be “expensive in every way,” says Katharine Nohr. And she should know.

She’s planning a two-week adventure to Europe in June, which starts with a marathon flight from Honolulu to Zurich, where she’ll speak at a conference. Then she’s hopscotching across Europe — to Vienna, then on to the Olympics. She’s made plans to be in Nantes, France, to watch a soccer game, Lille for basketball and Paris for gymnastics, boxing and swimming.

All told, it’ll set her back five figures despite her best efforts, which include flying economy class and staying in the lowest-priced hotels. 

“The trip is pricey, even with my efforts to economize,” says Nohr, an attorney from Honolulu. “But it’s a once-in-my-life adventure.” 

Summer travelers are pursuing exciting, expensive vacations

Nohr is part of a wave of travelers making big plans for this summer. The itineraries are exciting — and expensive. 

Pretty much every barometer of travel intent is up for the summer travel season. Inflation and unemployment are low, and consumer sentiment and curiosity are high, fueling an unprecedented interest in travel during the summer of 2024. 

“Bookings are rising,” says Susan Sherren, who runs Couture Trips , a travel agency. “Unfortunately, hotel, tour and air prices are not falling. So, if you plan on hitting the road this summer, make sure you are willing to splash some cash.”

Travel companies say they’re overwhelmed with summer reservations.

“The travel economy is booming,” says Joe Ialacci, owner of Yacht Hampton Boating Club , a company that rents yachts in Sag Harbor, N.Y. He’s seeing a 40% increase in rentals this summer compared to last year as Americans shift some of their vacation dollars to domestic destinations.

Prices aren’t the only thing trending higher. People’s expectations for their summer vacation are also higher than at any time since the pandemic, says Sangeeta Sadarangani, CEO of Crossing , a multinational travel agency headquartered in London. 

“They’re embracing the unknown,” she says.

And one of the great unknowns is travel prices. How much higher will they be?

What will prices be like this summer?

It depends on where you’re going. There’s good news if you’re traveling within the U.S.: Flights and hotels are a little less expensive than last summer. But they’re rising elsewhere. Here’s the breakdown:

• Airfares are mixed. Domestic round-trip airfares for summer are averaging $325 per ticket, which is down 5% from last year, according to the travel platform Hopper. Flights to Europe are cheaper, too. They’ve fallen 12% from last year to $1,012. But flights to South America are up 4% and flights to Canada have risen 5%. You’ll pay an average of $759 to fly south of the border and $430 to head north.
• U.S. hotel rates are down. Domestically, they’re down 7% to an average of $304 per night. Internationally, they’re up 2% to $314 per night, according to Kayak.
• Car rental prices are rising. Average domestic car rental rates are up 10% this summer to $113 per day, according to Kayak. Last summer, rates dropped 14% after the car rental shortage ended. Internationally, rates are up 3% to an average of $88 per day.

But you can avoid the high prices with a little strategic planning, experts say.

What to avoid this summer

American travelers are becoming more predictable in their summer vacation choices, says John Lovell, president of Travel Leaders Group . Immediately after the pandemic, they embarked on “revenge” vacations to far-flung locations. Now they’re returning to more conventional vacations.

“We continue to see U.S. travelers heading back to the more traditional locations across Europe this year, like London, Rome, Athens and Munich,” he says.

There are places that will be exceptionally busy — and exceptionally pricey — this summer.

Paris during the Olympics. The Olympic Games are taking place in Paris this summer. Rooms are more than double the normal rates. which is typical of the Olympics. Paris is already crowded with tourists during the summer, so you can probably imagine what it will be like with the Olympics. Zut, alors!

Taylor Swift is touring Europe this summer. Prices will be higher and the crowds will be denser. “If you aren’t planning to attend one of her concerts, I recommend planning around those European cities when she’s there,” says Betsy Ball, co-founder of Euro Travel Coach . (Want to know if your schedules overlap? Here’s Taylor Swift’s concert schedule .)

Other big summer events. Even if you steer clear of Taylor and the Olympics, you’re still not out of the woods. There’s the UEFA Euro 2024 football tournament in Germany in June. There’s the Tour de France in July, which begins in Florence and finishes in Nice. France is also hosting the Paralympic Games in August and September, which will take place in Paris, Nice, Marseille and Bordeaux.

When is the best time to book a 2024 summer vacation?

Since this is going to be a busy one, the sooner you book, the better. Hopper recommends buying your airfare two to three months before your departure for domestic flights, and for international — well, it’s probably too late to get that rock-bottom fare. If you’re reading this in April, you can still find something for late August or early September, according to its airfare experts.

As always, you can save money by booking a flight for midweek instead of on the weekend — and, of course, by keeping far, far away from the big travel holidays like Memorial Day, the Fourth of July and Labor Day. 

Also, if you’re going overseas, remember their holiday calendar is different. For example, half of Europe shuts down during August for summer vacation. It’s worth a lookup, otherwise, you could face some real disappointments.

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Strategies for traveling better during the summer

One tactic that consistently works is splitting your getaway into two sections. Take that required summer vacation with your family somewhere less expensive during the high season. Then, wait until shoulder season for the big trip. 

That’s what Ross Copas, a retired electrician from Tweed, Canada, is doing during the summer of 2024. It’s a road trip across the northern U.S. by motorcycle — New York to Washington state, and then back east through Canada. 

Then he’s heading to Amsterdam in September for a 23-day European river cruise. He says the late summer getaway will be costly, but he doubts fares will fall anytime soon. “So price be damned,” he adds.

Actually, that’s pretty smart. I took the same cruise he’s planning on Viking River Cruises many years ago, and it was worth every penny.

With hotel rates rising in some places this summer, this is the right time to consider alternatives. Monica Fish, a writer from Glen Rock, N.J., is headed to Ireland to catch one of Swift’s performances. She says hotel rooms in Dublin are overpriced if they’re even available. But Fish found an affordable vacation rental. 

“We just had to book it farther in advance than we normally would,” she says. 

Go ahead, follow the crowds this summer

I think it’s fine to follow the crowds this summer. I’ll be doing it. I’m planning to rent an apartment for a month in Switzerland with Blueground, a long-term apartment rental company. Then I’m crashing on a friend’s sofa in Spain, then heading to Sweden to see other friends and visiting my brother in Finland. Yes, travel writers know people everywhere . 

But don’t follow the crowds off a cliff. There are places even I won’t go. I might take the four-hour train trip from Zurich to Paris in June to check out my favorite patisseries, but I wouldn’t go anywhere near the City of Lights during the Summer Games in July unless I made a reservation a long time ago.

And Taylor Swift? Puh-leeze. I’m more of a jazz guy.

The opinions expressed in reader comments are those of the author only and do not reflect the opinions of The Seattle Times.

Travel costs keeping some home through summer break from school

W ICHITA, Kan. (KWCH) - With rising costs having far-reaching impacts, one area in which families are adjusting is planning for summer activities. For many, sacrifices include forfeiting an extensive summer vacation.

“Vacationing becomes difficult when just the cost to get there used to be the cost for the whole vacation,” said Lisa Roberts, a Kansas-married mother of two who is among those making sacrifices when it comes to travel. “Sometimes I feel guilty because we would like to travel to see the ocean, beaches, or even get out of the country, but at this point in time, it’s not in the budget for a family of four.”

A time that is supposed to be stress-free can be made stressful with the costs.

“The idea of a vacation is not having to pick and choose what you do when you’re there, or deciding whether you’re going to cook and stay in versus going out to dinner. The point of going on vacation is to enjoy all the things when you’re not at home,” Roberts said.

She’s not alone. Many who responded to a question from 12 News about summer vacations said the costs of groceries, gas and other basic necessities are too high to think about taking time off.

AAA (Triple A) travel expert Matt Bert offered recommendations for those wanting to travel affordably.

“(If) you want to do something and haven’t planned it yet, look at cruises, look at all-inclusives,” he said. “I think where your dollar goes farther.”

Bert added that getting away, near or far, can be beneficial to your mental health.

“Just to pull yourself away from the chaotic mess of work and jobs and whatever else is going on in your life,” he said.

For those opting to stay close to home this summer to save money, in Kansas, the Sunflower Summer app offers deals from May 25 through Aug. 11. With it, parents can get free tickets for their children to see attractions across the state. All you have to do is download the app.

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Where are high prices hitting American families the hardest?

Rent, gas prices keep inflation uncomfortably high in march.

Inflation comes in hotter than expected in January

A 'Mornings with Maria' panel discusses the U.S. economy and markets after the January year-over-year CPI comes in at 3.1%.

Inflation rose faster than expected in March as an increase in the cost of rent and gasoline kept prices painfully high for millions of Americans.

The Labor Department said Wednesday that the consumer price index (CPI), a broad measure of the price of everyday goods including gasoline, groceries and rent, rose 0.4 % in March from the previous month. Prices climbed 3.5% from the same time last year, above the 3.2% figure recorded in February. 

"This was a painful report with few bright spots for consumers," said Robert Frick, corporate economist with Navy Federal Credit Union. "Not only did most food prices rise after they seemed to flatten out, car insurance had a big jump."

Here is a breakdown of where Americans are seeing prices rising and falling the fastest as they continue to wrestle with sticker shock.

INFLATION ACCELERATES MORE THAN EXPECTED IN MARCH AS HIGH PRICES PERSIST

Housing costs were once again one of the biggest drivers of inflation last month. Rent costs rose 0.5% for the month and are up 5.7% from the same time last year. 

A "for rent" sign is posted in front of a home in Miami on Dec. 12, 2023. (Joe Raedle/Getty Images / Getty Images)

Rising rents are concerning because higher housing costs most directly and acutely affect household budgets. Another data point that measures how much homeowners would pay in equivalent rent if they had not bought their home also climbed by 0.4% from the previous month.

JAMIE DIMON WARNS INFLATION, INTEREST RATES MAY REMAIN ELEVATED

Food has been one of the most visceral reminders of inflation for Americans. In March, the cost of food rose 0.1% after it leveled off the previous month. Food prices remain up 2.2% when compared with the same time last year.

Grocery prices were unchanged in March, according to the data, but are up 1.2% from the year-ago period. Additionally, when compared with January 2021, before the inflation crisis began, grocery prices are up a stunning 21%.

The cost of eggs surged 4.6% in March amid another outbreak of the avian flu. Consumers also paid more for other goods, including rice (0.6%), beef and veal (0.2%), pork (1.1%), chicken (1.8%), fresh fish and seafood (0.1%), bananas (0.6%), lettuce (5.9%), juices (0.6%) and coffee (0.3%). 

People shop in the food section of a retail store in Rosemead, California, on Jan. 19. (Frederic J. Brown/AFP via Getty Images / Getty Images)

WHY ARE GROCERIES STILL SO EXPENSIVE?

However, the cost of some grocery items actually fell last month, with notable declines in the price of cereal, bread, ham, apples and tomatoes.

Energy prices jumped in March for the second straight month, adding to the financial pressure that many families are already enduring. Prices rose 1.1% during the month, including a 1.7% jump in gasoline.

The average cost of a gallon of gas hit $3.61 on Wednesday, according to AAA, up more than 6% from one month ago. Prices are expected to rise further. Oil prices are rapidly approaching $90 a barrel amid concerns about a wider war in the Middle East.

Gas prices are displayed at a gas station in Chicago on March 12. (Scott Olson/Getty Images / Getty Images)

Electricity costs also jumped 0.9% in March and remain 5% higher than the prior year.

There was some good news for Americans looking to buy a car in March.

The cost of used vehicles — which were a major component of the inflation spike in 2022 — fell 1.1% last month and is down 2.2% year over year. 

New car and truck prices also inched lower in March, declining 0.2%. Prices are down 0.1% from the same time last year.

However, there is another problem for car owners: rising insurance costs. Auto insurance jumped 2.6% in March, after rising the previous four months. On an annual basis, prices are up a stunning 22.2%.

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Travel and Transportation

A United Airlines Boeing 787 taxis as a United Airlines Boeing 767 lands at San Francisco International Airport. (REUTERS/Louis Nastro/File Photo / Reuters Photos)

Airline tickets fell in March for the first time in months, sliding 0.4%.

The cost of tickets is down about 7.1% when compared with last year, according to the data.

Travel, Tourism & Hospitality

Industry-specific and extensively researched technical data (partially from exclusive partnerships). A paid subscription is required for full access.

• European travelers most concerned with rising travel costs 2023, by country

Countries with the highest share of travelers concerned with rising travel costs and personal finances in Europe as of September 2023

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Show sources information Show publisher information Use Ask Statista Research Service

October 2023

September 11 to 26, 2023

4,052 respondents

18 years and older

respondents who were most likely to travel within Europe in the next 6 months; Europeans who took at least two overnight trips between 2020 and 2022

Online survey

The source displayed only the four countries with the highest share of respondents who were concerned per each category. The survey included respondents from the following countries: Germany, United Kingdom, France, Netherlands, Italy, Belgium, Switzerland, Spain, Poland, and Austria.

Other statistics on the topic Impact of inflation on travel and tourism worldwide

Accommodation

• HICP inflation rate for hotels and similar accommodation in the EU 2017-2024
• CPI inflation rate of travel and tourism services in the UK 2023
• Change in the travel price index in the U.S. December 2023, by industry

Food & Drink Services

• HICP inflation rate for restaurants and cafés in the EU 2017-2024

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Statistics on " Impact of inflation on travel and tourism worldwide "

• Change in the travel price index vs. consumer price index in the U.S. 2022-2023
• Impact of high prices on travel plans in the U.S. 2023
• Share of U.S. travelers changing their holiday plans due to inflation 2023, by income
• Consumers who spent less on travel and dining out in the U.S. 2023, by income
• Annual average HICP of travel and tourism services in the EU 2019-2023
• HICP inflation rate of travel and tourism services in the EU 2024
• Europeans' main concerns about trips within Europe 2023
• Share of Europeans believing that inflation impacted the desire to travel 2023
• Reasons to not travel long-haul to Europe worldwide 2023, by country
• Annual average CPI inflation rate of travel and tourism services in the UK 2019-2023
• Main barriers to taking overnight domestic trips among adults in the UK 2023
• Share of Britons thinking that cost of living might impact holiday plans 2023, by age
• Britons' main responses to the impact of cost of living on vacations 2023
• Main issues for business travel according to travel suppliers worldwide 2024
• Main issues for business travel according to travel managers worldwide 2024
• Main issues for business travel worldwide 2024, by region

Other statistics that may interest you Impact of inflation on travel and tourism worldwide

Impact on travel in the United States

• Premium Statistic Change in the travel price index vs. consumer price index in the U.S. 2022-2023
• Premium Statistic Change in the travel price index in the U.S. December 2023, by industry
• Premium Statistic Impact of high prices on travel plans in the U.S. 2023
• Premium Statistic Share of U.S. travelers changing their holiday plans due to inflation 2023, by income
• Premium Statistic Consumers who spent less on travel and dining out in the U.S. 2023, by income

Impact on travel in Europe

• Basic Statistic Annual average HICP of travel and tourism services in the EU 2019-2023
• Basic Statistic HICP inflation rate of travel and tourism services in the EU 2024
• Basic Statistic HICP inflation rate for restaurants and cafés in the EU 2017-2024
• Basic Statistic HICP inflation rate for hotels and similar accommodation in the EU 2017-2024
• Premium Statistic Europeans' main concerns about trips within Europe 2023
• Premium Statistic European travelers most concerned with rising travel costs 2023, by country
• Premium Statistic Share of Europeans believing that inflation impacted the desire to travel 2023
• Premium Statistic Reasons to not travel long-haul to Europe worldwide 2023, by country

Impact on travel in the United Kingdom

• Premium Statistic Annual average CPI inflation rate of travel and tourism services in the UK 2019-2023
• Premium Statistic CPI inflation rate of travel and tourism services in the UK 2023
• Premium Statistic Main barriers to taking overnight domestic trips among adults in the UK 2023
• Premium Statistic Share of Britons thinking that cost of living might impact holiday plans 2023, by age
• Premium Statistic Britons' main responses to the impact of cost of living on vacations 2023

Impact on global business travel

• Premium Statistic Main issues for business travel according to travel suppliers worldwide 2024
• Premium Statistic Main issues for business travel according to travel managers worldwide 2024
• Premium Statistic Main issues for business travel worldwide 2024, by region

Further Content: You might find this interesting as well

‘Serious escalation’: World reacts to Iran’s drone, missile raids on Israel

World leaders express fear the conflict could lead to further escalation in the region, calling for all sides to exercise restraint.

The international community has reacted with alarm after Iran launched explosive drones and fired missiles at Israel in its first direct attack on Israeli territory.

Tehran had been threatening to attack Israel after an air raid on April 1, widely blamed on Israel, destroyed Iran’s consulate in Syria, killing 13 people ,  including two elite Iranian generals.

Keep reading

Iran launches hundreds of missiles, drones in first direct attack on israel, biden vows g7 response, ‘ironclad’ us support for israel after iran attacks, several countries issue travel warnings over israel-iran tensions, ‘disastrous’: israel-iran tensions test limits of us policy amid gaza war.

The Israeli forces said in a statement early on Sunday the “vast majority” of missiles launched from Iran were intercepted outside of Israel’s borders.

Tensions between Israel and Iran have soared since Israel’s six-month war in the Gaza Strip.

Here is how the world reacted to Iran’s retaliatory attacks on Israel:

The office of President Javier Milei expressed its “solidarity and unwavering commitment” to Israel in the face of the attacks.

It added that Argentina “emphatically supports the State of Israel in the defence of its sovereignty, especially against regimes that promote terror”, noting an Argentinian court recently held Iran responsible for bomb attacks on the Israeli embassy and a Jewish community centre in Buenos Aires in the 1990s.

The Ministry of Foreign Affairs issued a statement saying it follows “with grave preoccupation” the news that Iranian drones and missiles were sent to Israel.

It noted that Brazil has been warning the international community, since the beginning of the war on Gaza that the conflict could spread throughout the region.

Canadian Prime Minister Justin Trudeau told reporters in Ottawa that his country “unequivocally condemns Iran’s airborne attacks”, adding: “We stand with Israel.”

“After supporting Hamas’s brutal October 7 attack, the Iranian regime’s latest actions will further destabilise the region and make lasting peace more difficult,” he added.

China is deeply concerned about escalation after Iran’s attacks, a Ministry of Foreign Affairs spokesperson said in remarks published on its website.

“China calls on relevant parties to remain calm and exercise restraint to avoid further escalation of tensions,” the spokesperson said in response to a question about Iran’s strikes.

This round of tensions is a “spillover from the Gaza conflict”, and quelling that conflict is “a top priority”, the spokesperson added.

President Gustavo Petro called the attacks “predictable”, adding that “we’re now in the prelude to World War III precisely when humanity should rebuild its economy towards the rapid goal of decarbonisation”.

“The support of the US, in practice, for a genocide, has ignited the world. Everyone knows how wars start, no one knows how they end. If only the people of Israel were high enough, like their ancestors, to stop the madness of their ruler,” he said in a statement.

“The United Nations must meet urgently and must immediately commit to peace.”

The Ministry of Foreign Affairs expressed its “deep concern” at the escalation of hostilities and called for “maximum restraint”.

Its statement also warned of the “risk of the regional expansion of the conflict”, and added that Egypt would be “in direct contact with all parties to the conflict to try and contain the situation”.

European Union

“The EU strongly condemns the unacceptable Iranian attack against Israel,” EU’s top diplomat Josep Borrell said in a post on X.

“This is an unprecedented escalation and a grave threat to regional security.”

The EU strongly condemns the unacceptable Iranian attack against Israel. This is an unprecedented escalation and a grave threat to regional security. — Josep Borrell Fontelles (@JosepBorrellF) April 13, 2024

Foreign Minister Stephane Sejourne said Iran is taking a “new step in its destabilising actions and taking the risk of a military escalation”.

German Chancellor Olaf Scholz said that his country would do everything possible to prevent further escalation in the Middle East.

“We can only warn Iran in particular. It is good that Israel, together with its partners, has largely repelled this attack,” he said in a statement on the social media platform X.

German Foreign Minister Annalena Baerbock condemned the attack which she said “could plunge an entire region into chaos.

Iran and its proxies must stop this immediately,” she said. “Israel offers our full solidarity at this time,” she added.

After a video conference held by the Group of Seven (G7) leaders, the president of the European Council, Charles Michel, said the group “unanimously condemned” the drone and missile attack, but added that “all parties must exercise restraint”.

“We will continue all our efforts to work towards de-escalation. Ending the crisis in Gaza as soon as possible, notably through an immediate ceasefire, will make a difference,” Michel added.

India said it was “seriously concerned at the escalation of hostilities between Israel and Iran, which threatens the peace and security in the region”.

“We call for immediate de-escalation, exercise of restraint, stepping back from violence and return to the path of diplomacy,” the Ministry of External Affairs said in a statement.

India, it added, is closely monitoring the evolving situation and Indian embassies in the region are in close touch with the Indian community.

“It is vital that security and stability are maintained in the region,” the statement further said.

Prime Minister Bisher Khasawneh said any escalation in the region would lead to “dangerous paths” and said that there was a need to reduce escalation by all parties.

In remarks to the cabinet, Khasawneh said the country’s armed forces would confront any attempt by any party that sought to endanger the kingdom’s security.

Lebanese group Hezbollah praised Iran’s attack on Israel, describing it as a “brave” decision.

Iran-backed Hezbollah added in a statement that Iran had exercised its legal rights despite “threats, intimidation and pressure”.

Malaysian Prime Minister Anwar Ibrahim dubbed Iran’s attack as a “consequence of the Israeli government breaking international laws” by bombing the Iranian consulate on April 1.

He said the violence between the two regional rivals was not “good for the world economy and peace,” local English daily Malay Mail reported.

“The war between Iran and Israel that started after the Zionist Israeli government attacked the Iranian embassy, which is against international law, is a consequence of one’s actions. When you break the law you invite a reaction.”

“Today’s developments demonstrate the consequences of the breakdown of diplomacy,” the Pakistani Foreign Ministry said in a statement.

“These also underline the ‘grave’ implications in cases where the UN Security Council is unable to fulfil its responsibilities of maintaining international peace and security.”

For months, it added, Pakistan has underlined the necessity of international efforts to prevent expansion of hostilities in the region and for a cease-fire in Gaza.

“It’s now critically urgent to stabilise the situation and restore peace. We call on all parties to exercise utmost restraint,” it concluded.

The Gulf nation called on all concerned parties to stop the escalation and exercise utmost restraint.

In a statement, the Qatari Ministry of Foreign Affairs expressed “its deep concern about the developments in the region”.

It called on “all parties to halt escalation, promote calm and exercise maximum restraint”.

It urged “the international community to take urgent action to defuse tension and de-escalate the situation in the region”.

Statement : Qatar Expresses Deep Concern about Regional Developments, Calls for De-Escalation, Restraint #MOFAQatar pic.twitter.com/64QS07pUoU — Ministry of Foreign Affairs – Qatar (@MofaQatar_EN) April 14, 2024

Russia said it was extremely concerned by Iranian strikes on Israel and called on all parties to exercise restraint.

“We express our extreme concern over another dangerous escalation in the region,” Russia’s foreign ministry said in a statement on the Iranian attacks. “We call on all parties involved to exercise restraint.”

“We have repeatedly warned that the numerous unresolved crises in the Middle East, primarily in the Palestinian-Israeli conflict zone, which are often fuelled by irresponsible provocative actions, will lead to an increase in tension,” the ministry said.

United Kingdom

Prime Minister Rishi Sunak described Iran’s actions as “reckless”.

“Iran has once again demonstrated that it is intent on sowing chaos in its own backyard,” he said in a statement posted on X.

“The UK will continue to stand up for Israel’s security and that of all our regional partners, including Jordan and Iraq,” he added.

Read my statement on the Iranian regime’s reckless attack against Israel. pic.twitter.com/xeuR3cd3kG — Rishi Sunak (@RishiSunak) April 13, 2024

United Nations

“I strongly condemn the serious escalation represented by the large-scale attack launched on Israel by the Islamic Republic of Iran this evening,” Secretary-General Antonio Guterres wrote in a statement.

“I am deeply alarmed about the very real danger of a devastating region-wide escalation. I urge all parties to exercise maximum restraint to avoid any action that could lead to major military confrontations on multiple fronts in the Middle East,” he added.

United States

President Joe Biden condemned the Iranian attacks and pledged a coordinated G7 diplomatic response. He said the US had helped Israel take down “nearly all” of the attacking drones and missiles.

Biden said in a statement released by the White House that he reiterated the “ironclad” US support for Israel’s security in a call with Prime Minister Benjamin Netanyahu.

“I told him that Israel demonstrated a remarkable capacity to defend against and defeat even unprecedented attacks – sending a clear message to its foes that they cannot effectively threaten the security of Israel,” he said in the statement.

“Tomorrow [Sunday], I will convene my fellow G7 leaders to coordinate a united diplomatic response to Iran’s brazen attack,” he said.

The US also does not want to see an escalation of the conflict in the region and Biden made clear to Netanyahu that Washington would not participate in any offensive action against Iran, according to a senior administration official who was not authorised to publicly discuss the private conversation between the two leaders.

Pope Francis made a “pressing appeal” against a “spiral of violence”, warning of a potential regional conflagration.

“I make a pressing appeal for an end to any action which could fuel a spiral of violence that risks dragging the Middle East into an even greater conflict,” the Argentinian pontiff declared following his traditional Sunday prayer in Saint Peter’s Square at the Vatican.

“I am praying and following with concern, but also pain, the news that has come in recent hours about the worsening situation in Israel due to Iran’s intervention,” the pope told worshippers.

“No one should threaten the existence of others. All countries must, however, side with peace and help Israelis and Palestinians to live in two states, side by side and in security,” he said.

Yemen’s armed Houthi movement said on Sunday that Iran’s attack on Israel was a legitimate act in response to a suspected Israeli strike on the Iranian consulate in Damascus on April 1.

A Houthi spokesman added that the Yemeni group had been in direct confrontation with Israel since October 7, by attacking the southern Israeli port of Eilat with missiles and drones and by preventing Israeli ships from sailing through the Red Sea.