Holiday travel could cost Americans more this year as rising airfare and other travel expenses put pressure on vacation budgets.
New federal inflation data shows airfares are up more than 22% compared with a year ago. Higher costs for gas, hotels, restaurants and entertainment could also make Thanksgiving and Christmas trips more expensive.
Travel experts say people who have not booked their holiday flights may want to act soon rather than wait for prices to drop.
Clint Henderson, managing editor at The Points Guy, said travelers are facing a difficult booking season.
Henderson said airfare typically becomes less expensive after the busy summer travel season, but that trend has not materialized this year. He recommends booking as soon as possible because prices could continue to climb.
According to travel app Hopper, months of elevated jet fuel costs, driven in part by the conflict in Iran, have pushed Thanksgiving and Christmas airfares to their highest levels in a decade.
Hayley Berg, Hopper’s lead economist, said the average domestic Thanksgiving airline ticket is around $400, up 31% from the same time last year.
Christmas airfare is also elevated, with tickets averaging about $450, a 23% year-over-year increase, Berg said.
Higher fuel costs are also prompting airlines to cut some less-popular routes and flights, potentially leaving travelers with fewer options.
Sally French, a NerdWallet travel expert and co-host of the Smart Travel podcast, said airlines are cutting back on some of the flights that traditionally offer lower fares.
French said Tuesday and Wednesday flights are often among the cheapest options, but travelers may find fewer of those flights available this year.
Despite rising prices, travel experts say there are still ways to reduce the cost of a holiday getaway.
Berg recommends using existing travel credits or rewards points to help offset airfare and other expenses.
Henderson also suggests considering vacation packages that combine flights, hotels, activities and rental cars. According to Henderson, bundling those expenses could save travelers as much as 40%.
For travelers who have already booked, comparing available options and reviewing airline policies may help identify opportunities to save. However, any changes should be weighed against potential fees and fare differences.
Travel experts often recommend booking holiday flights by Halloween, but this year’s price increases could make waiting a riskier move.
With Thanksgiving and Christmas fares already elevated, travelers who have not made arrangements may benefit from comparing prices and booking when they find a fare that fits their budget.
The key, experts say, is to avoid assuming prices will fall as the holidays get closer.
