Key facts
- Average airline fares in the U.S. increased by 26.7% in May compared to the previous year.
- Overall travel prices have risen 7.8% year-over-year, exceeding the general inflation rate.
- Fuel costs for airlines are up over 10% year-over-year, driving up airfare.
- Hotel prices have seen a 5% increase nationwide.
- Public transportation costs have risen by nearly 17% year-over-year.
- Despite rising costs, most travelers are adjusting their plans rather than canceling trips.
Americans planning summer travel are facing significantly higher costs compared to last year, driven by increases in airfares, hotel prices, and fuel expenses. Federal inflation data for May revealed that average airline fares across U.S. cities surged by 26.7% year-over-year, with a nearly 3% increase from April. The U.S. Travel Association's Travel Price Index showed overall travel prices up 7.8% annually, more than double the general inflation rate.
Major airlines, including United, Delta, and American, have cited rising fuel prices, which were up more than 10% compared to the previous year, as a primary driver for increased airfare. Hotel prices have also climbed by approximately 5% nationwide. Public transportation costs have seen a substantial rise of nearly 17% year-over-year, though the pace of increase slowed to 0.3% between April and May.
While rental car rates have decreased by about 6% year-over-year, the cost of fuel for driving remains a significant burden, with prices up nearly 41%. Despite these rising expenses, surveys indicate that most Americans are not canceling their travel plans but are instead making adjustments. These adjustments include choosing less expensive destinations, planning shorter trips, and opting for driving over flying.
Surveys suggest that while the majority intend to travel as much or more than last year, a smaller percentage plan to travel less, citing general economic anxiety and higher airfare prices. Those who are traveling expect to spend more, with budgets for trips increasing by about 17% to just over $4,000. However, households earning under $100,000 are more likely to cut back on travel when expenses rise, and a lower share of Americans are planning vacations with paid lodging compared to previous years.