Summer vacations are a big expense for most Americans, but they're going to be even more expensive this year, even though airfares, rental cars, and other travel-related costs are falling. That's because prices of things like: Checked baggage, restaurant Recreational experiences etc.
According to a NerdWallet survey, while hotel rates are down 4%, airfares are down 6% and rental car prices are down 10%, travel this summer will be 15% more expensive than before the pandemic as airline extras like seat selection fees and the costs of dining out and entertainment are putting a strain on Americans' wallets.
“Inflation is no joke, and Americans are feeling the effects,” said Chris Van Cleave, senior transportation reporter for CBS News. “Once the bill is in place, it's going to be pretty much the same as it was last year, but with some real pain points,” he added.
One of the problems is Airline baggage fees“It might be $5 round trip, but when you double that and quadruple it for a family of four, it's going to feel like the cost of travel is going up, even though individual prices are going down,” Sally French, who tracks vacation inflation for NerdWallet, told CBS News.
The cost of vacation activities, like visiting amusement parks and other locations, has increased 3.4% since 2019, according to NerdWallet.
When it comes to eating out, restaurant meals are up nearly 30% compared to 2019. This can be a big expense for travelers who don't include food in their budget. “A lot of people don't budget for restaurant bills when they're first planning their vacation,” French says. “They budget for hotel and airfare.”
In fact, airfares can appear artificially low when only the base fare is advertised, without taking into account extras like seat selection.
How to save on summer travel
Although concerns about inflation and the state of the economy weigh heavy on Americans' minds and wallets, about 70% of people still say they plan to travel this summer.
Van Cleave offers these tips for consumers looking to cut costs when traveling:
- It's always better to travel during off-peak times when airfares tend to be cheaper. Memorial Day WeekendFor example, Saturday is a less busy day than Thursday or Friday, so people aim for Saturday to get an early start on their long weekend.
- Being flexible with your travel destinations can also be easy on your wallet, especially if you avoid popular or crowded places. “If all you want to do is go to the beach, go to a destination that's less popular and has less demand,” Van Cleave suggests. “You'll still get sun, sand, and surf, and your bill might be lower.”
- Finally, spend travel rewards or credit card points as soon as you earn them, rather than saving them for the future when their value may decrease. “Use them as soon as you earn them to reduce your travel costs. The only thing guaranteed with points is that they will decrease in value over time,” says Van Cleave.
