GoKawiilListen to this post
Key Takeaways Travel is getting more expensive this summer, with average airline fares and hotel prices on the rise, according to the latest inflation data.
The U.S. Travel Association’s Travel Price Index for May shows overall travel prices up 7.8% year over year, more than double the overall inflation rate.
Multiple surveys show that travelers are adjusting to the higher prices by modifying their plans, not canceling them outright.
Americans preparing for summer trips are encountering significantly higher costs than last year.
New federal inflation figures released earlier this week showed that average airline fares across U.S. cities surged 26.7% in May compared to a year earlier, with prices also rising nearly 3% from April.
Prices tied directly to summer vacations are rising faster than overall inflation. The U.S. Travel Association’s Travel Price Index for May shows overall travel prices up 7.8% year over year, more than double the overall inflation increase.
According to The New York Times, major carriers, including United, Delta and American, warned in their April earnings reports that fuel prices were climbing. Each airline said fuel costs were up more than 10% compared to the previous year, driving airfare prices up.
Staying in a hotel on vacation is also more costly. The Times reported that hotel prices have also increased by about 5% across the country compared to last year.
At the same time, Americans traveling on the ground also face higher costs. Public transit has become significantly more expensive, with costs rising nearly 17% compared with last year, per the Times. However, the pace of those increases may be easing, as prices edged up just 0.3% between April and May.
... continue reading