Inflation will ruin many Americans’ vacation plans

Inflation may put a bit of a damper on the holiday spirit for many Americans planning to travel this season.

According to a new Bankrate survey, the rising cost of gas, airfare and hotels is making travelers especially budget-conscious. Americans said they plan to travel shorter distances, spend fewer days out of town and engage in fewer activities that cost money. More people are also planning to drive to their destination rather than fly, while others plan to use credit card points to book travel, the personal finance website found.

Fares have risen sharply compared to last year. Accommodation away from home, including hotel stays, rose 4% in August compared to last year, respectively to the Consumer Price Index. Over the same period, gasoline prices rose by 26% and airfares jumped by 28%, inflation data show.

The days from November 24 to January 1 are the busiest time for domestic travel. The price of plane tickets and hotel stays are expected to continue to rise during the holiday season, with airfares set to reach their highest levels in five years, according to a travel booking app. Bunker.

Domestic flights on Christmas are averaging about $435 round-trip, up 55% from last year, while Thanksgiving tickets are around $281 round-trip, up 25%. than last year, Hopper data shows. The average hotel stay for Thanksgiving will be $189 per night, up 13% from last year, and $218 per night for Christmas, up 32% from last year.

Holiday travel also proved challenging earlier this year, especially on Memorial Day when passengers experienced thousands of canceled or delayed flights. The cancellation was attributed to bad weather, staff shortages, and overscheduling by the TSA and airlines for some flights.

“Hopefully this holiday season won’t be as chaotic, but I suspect there will be more travel disruptions due to weather, high demand, staffing delays and equipment shortages,” said Bankrate senior industry analyst Ted Rossman.