Travel Costs Price Out Americans
A USA Today analysis finds that vacationing is increasingly becoming a luxury for everyday Americans. Inflation, rising base prices, hotel rate surges, and mounting add-on fees are forcing many would-be travelers to rethink their plans. Industry observers note that travelers are "paying more for less," with discretionary vacations potentially out of reach for growing segments of the population.
- The average cost of a vacation in 2025 is projected to be $7,249, an 11% increase from 2024 and more than double the average cost in 2022. For a family of four, the average cost of a four-night domestic trip reached $4,668 in 2025, a 14.5% increase since 2019. - Dining out has seen the sharpest increase in cost among major vacation expenses, rising 28.2% between 2019 and 2025. This is more than double the rate of inflation for lodging (+12.9%), airfare (+9.1%), or rental cars (+8.7%) over the same period. - While overall travel costs are up 1% in February 2026 compared to the previous year, some prices have decreased. Hotel and motel rates are down 3.2% and car rentals are down 1.2% over the past year. - So-called "drip pricing," where add-on fees for things like seat selection or resort amenities are revealed during the booking process, can significantly increase the total cost of a trip beyond the advertised price. Some lawmakers have targeted these "junk fees" with legislation aimed at requiring more upfront price transparency. - Labor shortages are a significant issue for the travel and tourism industry, which is projected to have a shortfall of over 43 million workers by 2035. In the hospitality sector alone, there is an expected gap of 8.6 million workers, which is about 18% below the required staffing levels. - In response to rising costs, one in three Americans plan to cut back on travel spending in 2025, with many opting for "staycations" or domestic trips instead of international travel. - Despite the higher costs, many Americans still prioritize travel, with nearly eight in ten adults planning a vacation in the next year. Some consumers are treating holidays as a non-negotiable part of their annual budget. - Mid-size cities in the Mountain West have seen some of the steepest increases in vacation costs. For example, the cost of a four-night family trip in Albuquerque, New Mexico, rose by 27.7% since 2019.
