Catherine Rusoff
Summer vacations, an expensive purchase for most Americans, will be even more expensive this year despite drops in airfares, car rentals and other travel-related expenses. The reason? High prices on things like checked bags, restaurants and recreational experiences.
While hotel prices fell 4%, airfares fell 6% and car rental costs fell 10%, according to a Nerd Wallet research, vacations this summer will cost 15% more than before the pandemic. That’s because airline extras like seat selection fees, as well as costs for dining out and entertainment, are taking a further toll on Americans’ wallets.
“Inflation is no joke. Americans are feeling the impact,” said CBS News senior transportation correspondent Kris Van Cleave. “What they will find when the bill comes in will be very similar to last year, but there are some real pain points,” she added.
One of these trouble spots is airline baggage fees. “That could be $5 and then multiply by two for your round trip, multiply by four for your family of four, and you’ll see that the cost of the trip seems to be going up, even though individual prices are going down.” , Sally French, who tracks holiday inflation for NerdWallet, told CBS News.
The costs of vacation activities, like visiting amusement parks or other locations, have increased 3.4% since 2019, according to NerdWallet.
When it comes to eating out, restaurant meals are up almost 30% compared to 2019. This can represent a significant expense for tourists, many of whom don’t include food in their budget. “Many people don’t budget for restaurant prices when they initially plan a vacation,” French said. “They are budgeting the price of the hotel and airfare.”
In fact, airfares can appear artificially low when only the base fare is advertised, which doesn’t take into account the cost of extras like choosing 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% still say they will take a trip this summer.
Van Cleave offers these tips for consumers looking to cut costs on travel.
- It’s always worth traveling during off-peak times, when air tickets tend to be cheaper. On Memorial Day weekendfor example, Saturday is a slower travel day compared to Thursday and Friday, which people look for to start their long weekends.
- Being flexible about where you travel can also help your wallet. Avoiding particularly popular or congested areas can lead to significant savings. “If you just want a beach, maybe go to a less popular and less sought-after destination,” suggests Van Cleave. “You get the sun, you get the sand, you get the surf and maybe you’ll get a smaller bill.”
- Lastly, spend your travel rewards and credit card points as you accumulate them, rather than storing them for some time in the future when they may be worth less. “Use them to reduce travel costs. The only guarantee with these points is that they will become less valuable over time,” said Van Cleave.
