Americans Still Feel Travel Whoas
Many airlines (including U.S. carriers) have raised airfares, contributing to higher travel costs for both domestic and international flights. Rising hotel costs are also frequently cited as part of this trend.
Holiday travel is widely reported as more expensive than in past years, with travelers encountering higher fees and overall costs during peak periods. With that, hospitality and travel trend data indicate travelers adjust plans, seek closer-to-home trips, and cut costs due to higher price pressures.
However, business travel continues to grow but is also under pressure from cost increases in airfare, hotels, and meetings/events.
Official travel price indices (which include airfare, hotel, fuel, rental cars, dining, etc.) have shown mixed results in 2025 — some months/studies show overall travel costs stabilizing or even flat year-over-year when cheaper lodging or vehicle rentals balance out higher airfares. While airfares have increased in many cases, analysis from industry data suggests they’ve grown less than broader U.S. inflation since 2019.
Travel price indices across specific months showed airfares, gas, and hotel prices rising at different rates, with some categories increasing faster than others — and some even falling. Surveys indicate that U.S. travelers plan to spend more on travel in upcoming years (e.g., 2026 budgets expected to be higher than in 2025).
Many U.S. travelers are choosing budget travel options, closer destinations, and cost-saving strategies because overall expenses are perceived as high. Tavel costs (especially flights and hotels) have increased for U.S. travelers compared with past years and pre-pandemic levels. Some travel expenses have stabilized or grown less than general inflation, depending on category and timing. Travelers are responding to higher prices by adjusting budgets, choosing different destinations or travel styles, and planning differently. The economy itself is still taking a toll on the blue collar worker. But, some are still attempting to create a better way of living despite the current fiscal climate.
