There’s good news and bad news for the nearly 50% of Americans who say they’re planning on taking a trip this summer despite inflation concerns, a recent analysis finds.
First, the good news: While some expenses are up, there are a number of ways to save on your vacation.
To start, look at flight costs. As a result of economic uncertainty, bookings are down slightly compared with one year ago, according to an analysis from NerdWallet. As a result, travelers can find deals on airfares, which are down roughly 8% compared with the same period one year earlier.
Hotel room rates are also down, falling 2.4% over the past year. Rental car costs are down by just over 2%, according to the analysis, which looks at data from travel categories, such as airfares an lodging, tracked by the Bureau of Labor Statistics’ (BLS) Consumer Price Index.
Travel costs overall are down 2% compared with Memorial Day weekend a year ago, NerdWallet’s Travel Price Index shows. The relief comes as overall prices rose 2.3% through April 2025, according to the latest data from BLS.
Americans who plan to travel are prepared to spend $300 more this summer compared with last summer, the analysis found. “A lot of people are still taking those big international trips this year that they booked many, many months ago,” NerdWallet’s lead travel writer Sally French told CBS News.
But while airfares are down, ride-share fares are up, as is the cost of entertainment. Overall, the cost of vacation-related activities is 3.4% higher this year from a year ago, while the cost of eating at restaurants has risen nearly 4%, according to NerdWallet’s analysis.
“There are a lot of unanticipated expenses that cost more and these are the things that can really add up,” French said. “There are the Lyft and Uber rides, there are the parking expenses, there are the tips.”
Here are some ways to save on your summer trip.
- Be flexible about when you travel, and where you go, to score deals on airfare.
- Set a budget for dining out to avoid overspending. Skip fancy restaurants, and try a deli for a memorable meal instead.
- Use credit card points and redeem airline rewards to cut down on travel costs.
Megan Cerullo is a New York-based reporter for CBS MoneyWatch covering small business, workplace, health care, consumer spending and personal finance topics. She regularly appears on CBS News 24/7 to discuss her reporting.
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