Key facts
- Airfares have risen 27% from a year earlier, according to inflation data.
- Hotel rates have also increased, contributing to higher travel costs.
- A survey indicates 81% of Americans perceive travel as more expensive than in recent years.
- 53% of respondents find planning summer travel financially stressful.
- 22% of Americans do not plan to travel this summer, while 35% have not yet booked.
- Half of Americans have a higher travel budget this year compared to last summer.
Americans are facing significantly higher costs for summer travel this year, with airfares alone seeing a substantial increase. Federal inflation data indicates that airline fares averaged across U.S. cities have risen by 26.7% in May compared to the same period last year, and nearly 3% from the previous month. This surge in airfare, coupled with rising hotel rates, is making once-common trips financially challenging for many households.
A survey of 1,000 U.S. adults revealed that 81% feel travel is more expensive than a few years ago, and 53% find planning a trip financially stressful. Consequently, 22% of Americans do not expect to travel this summer, while another 35% plan to travel but have not yet booked their arrangements, leaving travel intentions undecided for a significant portion of the population.
Generational differences are apparent, with 35% of baby boomers reporting no plans to travel this year, compared to only 13% of Gen Z. While half of Americans (50%) have a higher travel budget this summer than last, many are making financial trade-offs. Thirty-eight percent are cutting back on everyday spending, and 25% are working extra hours or taking on additional income to fund their vacations.
The increased cost of travel is partly attributed to global energy supply concerns, including the impact of the war in Iran on fuel and gas prices, which ripple across fuel-dependent sectors like travel.