Summer vacation, a big-ticket purchase for most Americans, will be even more expensive this year despite lower airfares, car rental fees and other travel-related expenses. The reason? High prices on things like checked baggage, Restaurants and recreational experiences.
While hotel prices are down 4%, airfares are down 6% and car rental costs are down 10%, according to a NerdWallet survey, vacations this summer will cost 15% more than before the pandemic. That’s because airline extras, like seat selection fees, as well as dining and entertainment costs, put more of a strain on Americans’ wallets.
“Inflation is no joke. Americans are feeling the impact,” said CBS News senior transportation correspondent Kris Van Cleave. “What they’re going to find when this bill comes forward, it’s going to look a lot like it did last year, but there are real problems,” he added.
One of these problems is airline baggage fees. “It could be $5, then multiply that by two for your round trip, multiply that by four for your family of four, and you’ll find that the cost of travel feels like it’s going up even though the prices “Individuals are falling,” Sally French, who tracks holiday inflation for NerdWallet, told CBS News.
Costs for vacation activities, like visiting amusement parks or other sites, have increased 3.4% since 2019, according to NerdWallet.
When it comes to dining out, restaurant dining is up nearly 30% from 2019. This could represent a significant expense for vacationers, many of whom don’t include food in their budget. “Many people don’t budget for restaurant prices when planning their initial vacation,” French said. “They budget for their hotel and plane ticket.”
Indeed, airfares can appear artificially low when only the base fare is announced, which does not take into account the cost of extras such as the choice of a seat.
Ways to Save on Summer Travel
Despite inflation and concerns about the state of the economy weighing on Americans’ psyches and wallets, about 70 percent still say they will take a trip this summer.
Van Cleave offers these tips for consumers looking to cut costs when traveling.
- It always pays to travel at off-peak times, when airfares tend to be cheaper. During Memorial Day weekendfor example, Saturday is a slower travel day than Thursday and Friday, which people turn to to get a head start on their long weekends.
- Being flexible about where you travel can also help your wallet. Avoiding particularly busy or congested areas can lead to significant savings. “If you just want a beach, maybe you go to a less popular, less in-demand destination,” suggests Van Cleave. “You get the sun, you get the sand, you get the waves and maybe you get a smaller bill.”
- Finally, spend your travel rewards and credit card points as you accumulate them, instead of storing them for a time in the future when they might be worth less. “Use them as you earn them to reduce travel costs. The only guarantee of these points is that they lose value over time,” Van Cleave said.
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