Here’s Why Your Vacation Is Costing So Much More This Summer

Here’s Why Your Vacation Is Costing So Much More This Summer

vacation inflation

The cost of vacations is much higher now than before.

I’s not your imagination. Americans are spending more for their summer vacations than they did in the pre-pandemic year, as prices are soaring for every component of a trip, including gas, airfare, hotels, restaurants and just about everything else.

Two-thirds of Americans say rising gas prices will affect their decision to travel in the next six months, according to the latest survey.

The road trip is just like a Broadway show. The majority of travelers are planning trips in the next six months. The demand for travel hasn’t waned so far, according to the CEO of the travel and tourism market research company.

Longwoods-2

Travelers will make trade-offs instead of canceling vacations due to gas prices.

Longwoods International

Travelers will look for ways to modify their vacations rather than canceling them. Eylon says that they are reallocating their spend to stay within their budget. A few less t-shirts and souvenirs for the kids. Maybe they are packing sandwiches in the car for the road or eating out less.

Airfares are high.

Is this flying? Sky-high demand for travel, combined with higher fuel prices and a pilot shortage, has created a perfect storm for higher airfares. According to data from Adobe, prices have risen a whopping 47% since January.

According to the chief economist at Hopper, the airfare is very high this summer, higher than we have seen before.

The domestic airfare peaked at $420 at the beginning of June, but has fallen to $395. Berg says that peaking in early June is just a seasonal pattern for airfares.

MORE FROM FORBESThese Travel Hacks Can Find Huge Summer Airfare BargainsBy Suzanne Rowan Kelleher

In the first five months of this year, consumers spent less online for domestic flights than they did in the first five months of this year.

A large portion of the difference can be attributed to airfare inflation. During the month of May, spending on flights was up 30% compared to the same month of the previous year, reflecting the higher prices travelers are paying.

While consumers have been able to stomach the higher fares, especially for those who delayed travel plans during the Pandemic, the dip in bookings shows that some are rethinking their appetite for getting on a plane.

More than a third of Americans say high airfares are likely to affect their decision to fly, according to a recent survey.

Pricier Hotels and Restaurants

Accommodations and dining are two of the biggest vacation categories.

According to the latest report from STR, the average daily hotel rate in the US is now $147.35, up 11.3% from 2019.

Budget-minded travelers might consider avoiding destinations with higher rates of hotel inflation. The average hotel price in Miami is now $205 per night, a 37.8% jump over the previous year.

According to data from the U.S. Bureau of Labor Statistics, dining out at a restaurant costs more than a year ago A data point that may make it easier to justify not cooking for yourself while on vacation is that the cost of eating out has risen less than the cost of eating in.

Tags: , , , ,