Americans are not giving up on travel, despite rising prices. Instead, travelers are increasingly being split into two groups: those still willing to spend more to get away, and those being priced out of travel altogether.
Fewer Americans planned summer vacations, with just 45% planning a vacation involving paid lodging, the lowest share in six years, according to Deloitte. Among those who aren’t traveling, 32% say travel is too expensive, while 35% say they simply cannot afford it.
The squeeze isn’t limited to airfare. I recently reported for TheStreet that industry data showed a portion of RV owners stopped using their vehicles altogether because they couldn’t afford travel costs.
Now, air travelers determined to squeeze in one final vacation before summer ends could be in for another unwelcome surprise: Getting there is about to cost more.
Popular Labor Day flights are nearly 20% more expensive
Flights to some of the country’s most popular domestic destinations are nearly 20% more expensive than they were last year, according to new data from AAA.
And airfare isn’t the only part of the trip getting more expensive.
Travelers are also paying more for accommodations. Domestic hotel bookings are up 9% compared to last Labor Day weekend, while international hotel bookings are 12% more expensive, according to the report.
AAA booking data shows average domestic airfare is up 2% compared to last year, averaging $750 for a round-trip ticket. For travelers flying to the most popular Labor Day destinations, however, airfare is nearly 20% higher than last year, averaging $790.
This difference between 2% and 20% is important because the national average masks the prices that travelers heading to the most popular destinations actually pay.
Most popular, expensive domestic Labor Day destinations:
- Seattle, WA
- Orlando, FL
- Boston, MA
- Denver, CO
- New York, NY
- Chicago, IL
- Anaheim/Los Angeles, CA
- Las Vegas, NV
- Anchorage, AK
- Atlanta, GA
Most popular, expensive international Labor Day destinations:
- Rome, Italy
- Vancouver, Canada
- London, England
- Dublin, Ireland
- Paris, France
- Calgary, Canada
- Barcelona, Spain
- Athens, Greece
- Amsterdam, Netherlands
- Halifax, Canada
For those opting to drive instead of fly, congestion will be equally unforgiving. Transportation data firm INRIX expects the heaviest traffic on Thursday and Friday afternoons as holiday drivers merge with weekday commuters. Peak delays are projected:
- Thursday, Sept. 3: 2 p.m. to 7 p.m.
- Friday, Sept. 4: Noon to 8 p.m.
- Saturday, Sept. 5: 1 p.m. to 5 p.m.
- Monday, Sept. 7: 2 p.m. to 5 p.m.
Some travel options are actually getting cheaper
Previous reporting has shown that Americans can sometimes find international airfare that costs about the same as, or less than, flights to domestic destinations. Reuters reported last summer that some travelers were finding flights to Europe cheaper than comparable domestic trips.
Now, flights to popular U.S. destinations are nearly 20% more expensive than last year, while international airfare is down 4%.
That doesn’t mean international airfare is cheaper in absolute terms. Rather, the two categories are moving in opposite directions: Popular domestic fares are rising sharply while international fares are falling.
Related: Delta Air Lines CEO signals major shift in what travelers pay
At the same time, international hotel bookings are 12% more expensive, providing a good reason for travelers to carefully compare prices.
Additionally, AAA data revealed cruises departing from U.S. ports were 4% less expensive than last year, averaging $2,700 per booking.
“Travel advisors say travelers continue to view cruises as a convenient vacation option because transportation, accommodations, dining, and entertainment are bundled into a single package,” reads the report.
How travelers can save before Labor Day
Flexibility can make a significant difference in what travelers ultimately pay. For example, a New York-to-Portland, Maine, nonstop round trip started at about $500 when flying Friday and returning Monday over Labor Day, The New York Times recently found.
Returning Tuesday lowered the price by about $50, while shifting the trip to Wednesday through Saturday brought the starting fare down to about $240.
Contrary to popular belief that booking earlier always means a cheaper hotel, Hotels.com’s data found that a window of 8 to 14 days offered the best value, with travelers saving an average 23% compared with those booking four or more months ahead, according to Travel + Leisure.
“Starting a hotel stay on a Sunday night also offers the best value, the study noted, with savings amounting to 15 percent compared to starting a stay on a Friday,” noted the outlet, citing Hotels.com’s study.
Travelers who already have airline miles or credit-card points should check whether they can offset some of the cost before paying today’s higher cash fares. New travel cards can also offer credits or rewards, but Forbes cautions that consumers should make sure the benefits outweigh the annual fee.
Additionally, for air travelers, The New York Times recommends using tools such as Kayak’s Monthly Flight Deal Tracker or Skyscanner’s “Everywhere” search feature. These tools rank the cheapest destinations from your home airport.
Related: Another national park closes hotels, campgrounds, overnight parking
