Inflation, surcharges and record hotel prices are forcing many travelers to completely rethink their vacations.
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- Travel costs have increased 23% since 2019, making travel too expensive for many Americans.
- Travelers are facing higher base prices and more surcharges on items such as checked baggage.
- Many in the travel industry charge more for fewer services and amenities.
Are travel costs too high?
For people like Tim Pryant, the answer is yes. This summer, he plans to avoid travel completely. Because it costs too much money.
“I can’t believe what they’re charging,” said Mr. Pryant, an architect from Austin, Texas.
He is particularly angry about the rising prices of food at the airport. “I’m in an expense account, and still “It’s difficult to get food at these prices,” he said.
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Travel costs have increased 23% since 2019, according to the U.S. Travel Association’s Travel Price Index. Affordability affects everyone, but it is especially problematic for young people. According to a poll from EF Go Ahead Tours, 72% of Gen Z and Millennials agree that travel is too expensive. What are the possible culprits? Inflation and other non-travel expenses are making it increasingly difficult to pay for vacations.
“From flights and hotels to everyday accessories, almost every part of travel involves surprising prices and price fluctuations,” said Trafalgar’s deputy chief executive officer Melissa DaSilva. “Many travelers are waiting longer to book, looking for the lowest fares and looking to increase price certainty in advance.”
How much does the trip cost?
You can illustrate the rising cost of travel by showing a series of graphs of airfares, hotel prices, and gas prices. One of the most dramatic is the increase in average hotel rates in the U.S., from $103 per night in 2020 to $162 per night in 2025, an increase of about 58%.
But there’s a bigger picture. It’s not just the base fare and gas price, it’s a combination of your destination, your travel preferences, and the surcharges offered by the travel industry upon arrival.
And recently, the number of extras has increased.
Dave Zurich, a project manager in Tucson, Ariz., said if his children didn’t live on the other side of the country, he wouldn’t travel at all.
“Airlines have removed every vestige of comfort,” he complained. “Before, checked baggage and seat selection were part of the ticket, but now you have to pay extra. At least you’re not being charged for toilet use…yet.”
In other words, the base price only tells part of the story. This, coupled with additional fees that most people don’t talk about, makes travel less affordable.
So what’s the answer to the question, how much does it cost to travel? For many Americans, it’s too expensive.
The travel industry may be losing touch with its customers
I’m always on the go so I have a chance to see this from a different perspective. Indeed, I end up paying a tremendous price that others pay. Like Pryant, I am outraged by the price of food at airports, both in the United States and beyond. I recently spent over $30 on two sandwiches in Bangkok. Come!
But I also have the opportunity to talk to airline executives, hotel owners, and vacation rental managers to get their input. And they’re honestly baffled that people aren’t willing to pay hundreds of dollars a night for their product. They seem to forget that inflation eats up much of their customers’ disposable income.
These industry leaders have reduced their products to what they once were. Where airline tickets once included carry-on baggage, checked baggage, seat assignments, and meals, they are now a stripped-down version of what they used to be. Seats are shrunk and everything costs extra, even carry-on luggage. Some hotels I’ve recently visited don’t change towels or sheets, don’t clean rooms every day, and have removed amenities like soap and lotion. And they are charging much more than they used to (see graph).
I think a large part of the travel industry has lost touch with its customers. They charge more for less and don’t understand the economic realities facing their customers.
Is it still affordable to travel?
Fortunately, there are still ways to travel without spending a fortune.
- Buy in bulk. This is the idea behind companies like EF Go Ahead Tours, aimed at young people, and Trafalgar, a tour operator with a more mature customer base. You can save money by purchasing flights, hotel rooms, and meals as part of a package.
- Choose a company that will accommodate you. For example, airlines such as Turkish Airlines, Qatar Airways, and Emirates often include checked baggage in their economy class fares. They’ve also come to appreciate that brands like Holiday Inn and Hilton Garden Inn offer high-quality products at fair prices.
- When others zigzag. If you’re thinking about traveling during the upcoming spring break and summer travel season, here’s my advice. Please don’t do that. This is the season when travelers have plenty of room in their wallets. The industry knows you are over the barrel and will try to extract the best price and provide the lowest level of service. Instead, travel during the shoulder seasons and choose your destination carefully.
It’s unfortunate that something like this happens. Travel used to be a reward, an opportunity to relax, reconnect, and explore. But for some Americans, it has become an unaffordable luxury. The only question is when will people reach a breaking point where they refuse to go anywhere?
I think we may be closer to it than anyone thinks.
christopher elliott I’m an author, consumer advocate, and journalist. he founded Elliot Advocacy, A non-profit organization that helps solve consumer problems. he publishes Elliot Confidentialtravel newsletter, Elliott Reporta news site about customer service. If you need help with a consumer issue, you can: Contact him here Or email chris@elliott.org.
