Inflation worldwide has significantly impacted many industries, including the travel industry. It seems like everywhere you look nowadays, prices are rising, and this is making some people think twice about booking trips. Unfortunately, it looks like inflation isn’t slowing down anytime soon, and the cost of travel may continue to skyrocket.
So, how is inflation changing travel plans in the U.S., and what could this mean for you? Here’s what you need to know:
How Much Has the Price of Leisure Travel Increased?
The cost of traveling for leisure has increased significantly, especially over this past year. One place that this can be seen is when looking at airline ticket prices. Airline ticket prices are up a whopping 25% in the last year – the most significant increase since 1989.
Another part of the travel industry that has seen a significant price increase is lodging. The cost of lodging in September 2022 is up 5% compared to September 2019. This has made it harder for families to find accommodations that fit their needs at a reasonable price.
But it doesn’t stop there. The increase in car rental prices has skyrocketed. According to NerdWallet, car rental prices in September 2022 are up a shocking 50% from prices in September 2019.
Is Inflation Affecting Business Travel?
Just as inflation is affecting leisure travel, business travelers are also feeling the effects of inflation. The cost of business travel in 2022 was up significantly, and unfortunately, it looks like this trend will continue into 2023. According to CNBC, airfare for business travel is on track to increase by almost 50% this year and is expected to rise another 8% in 2023. Furthermore, hotel prices may surpass 2019 levels sometime in the upcoming year.
Will Inflation Affect Holiday Travel?
Holiday travel may be on the decline this year, as many Americans plan are altering their holiday travel plans due to inflation. According to CNBC, of the 43% of Americans who plan on traveling this holiday season, 79% are planning on changing their travel plans. Some people may drive instead of fly, while others may travel to a less-expensive destination.
Are People Still Making Travel Plans?
Even with the rising cost of travel prices, people are making travel plans. In fact, the demand for travel is at an all-time high, and there are no signs of it slowing down anytime soon.
According to the U.S. Travel Association, travel spending is at its highest since before the pandemic and is even 6% above 2019 spending levels. Since everyone was cooped up inside during the coronavirus pandemic, people want to make the most of their time and hop on the revenge travel trend.
How Can I Save Money While Traveling?
Though travel prices are increasing, there are still ways that you can cut down on travel costs. One way is to fly on days when flights are typically less expensive. According to NerdWallet, the least expensive days to fly domestically are Tuesday and Wednesday, so try your best to book flights on these days.
Some other ways that you can save money while traveling include:
- Cook Your Own Food
- Travel During the Off-Season
- Book Your Travel Plans Early
- Take Public Transportation
- Eat Your Main Meal During Lunch
- Search For Free Activities
If you have an upcoming trip and need a passport or visa, you can get the application process started on the Swift Passport and Visa Services website. If you have any questions along the way, please don’t hesitate to contact a member of our team. We’d be happy to help! As always, no matter where you plan on traveling, we’ll get you there!