Travel Inflation Report: February 2025

When it comes to travel costs lately, it’s mostly bad news for travelers. Airfares in January were up 7.1% compared to this time last year, with hotel room rates also up.

But there is some good news: Car rental prices were down compared to this time last year.

All in all, average travel costs are 4% higher than they were this time in 2024, according to NerdWallet's Travel Price Index Travel, which combines data from individual travel categories tracked by the Bureau of Labor Statistics' (BLS) Consumer Price Index data, such as airfares, lodging, meals and rental cars.

What might sting even more for people planning a big trip soon is that the 4% increase in travel prices actually exceeds broader inflation rates. Overall prices for the past 12 months through January 2025 rose 3% before seasonal adjustment, according to BLS data.

That said, there are some smart moves you can take now to reduce the price of your next trip. Check out our travel saving suggestions below.

The Travel Price Index shows a 4% increase in travel prices from January 2024.

The silver lining for travelers? The first half of 2024 actually saw prices dip slightly lower from the year prior — largely due to prices stabilizing after a big 2023 spike due to the COVID-19 pandemic's "revenge travel" boom.

Relative to pre-pandemic prices, January 2025 travel costs are up just 14% versus January 2020 (the last January before lockdowns), which is actually far lower than the 23.2% price increase across all-items.

Not every product experiences inflation at the same rate — especially when it comes to travel. Some trips might actually be more or less expensive than in the past, depending on if you're driving versus flying, if you’re staying in a hotel and whether it involves a rental car.

To help you better understand how travel prices have changed, NerdWallet honed in on five categories:

• Airfare.

• Car rentals.

• Food away from home.

• Hotels.

• Movies, theaters and concerts.

NerdWallet then compared those costs to their same prices a month ago and a year ago.

And to broaden the perspective, the data also compares today’s prices to prices 10 years ago. Here’s what today’s travel prices look like:

When comparing January 2025 prices to January 2024, U.S. airfares are up by 7.1%.

But here's where the good news kicks in. When compared to prices 10 years ago, airfares are actually down 6.3%. It's pretty unheard of for prices to drop over that period of time — especially considering that the prices for all items tracked by BLS are up 35.9% over that same period.

So if airfares are down, why do they feel so high? There are a few reasons, including unbundling, where airlines advertise lower fares (often in the form of basic economy seats that offer few frills).

But, low base fares typically entail upcharges in the form of ancillary fees to check bags, or to guarantee a window seat or early boarding. For basic economy travelers who end up paying for those things, those separate prices are not captured in this data — despite it still impacting their travel budget. The good news? Travelers who don't check bags or who don't mind the middle seat at least are saving.

Average U.S. hotel and motel room rates are up 4.8% versus last month, but it's not the worst news. Room rates are up 1.9% versus last year, which is much smaller than the 3% all items increase.

And additionally, while hotel room rates are up 24% over the past 10 years, that's also less than the 36% increase across all items.

High rental car prices were one of the biggest stories of pandemic-era travel. But after a huge spike, prices have continued to recover. In January 2025, rental car prices fell 4.3% versus the month prior and 3.6% versus the year prior.

Food prices consistently rise nearly every month, and this month was no exception. In January 2025, the cost of food away from home was up 0.2% versus the same month in 2024.

The cost of dining out is far higher than it was a decade ago, with January 2025 prices coming in at 48.4% higher than what they were in January 2015. That's higher than the inflation rate across all items, meaning restaurant prices have risen more than many other categories of goods.

Tickets for movies, theaters and concerts are rising slightly slower than the average rate of inflation, up by 0.9% over the past month and 2.3% over the past year.

Paying for travel with points and miles versus cash isn’t as daunting a task as it may seem. Frequent flyer miles and hotel points can be accrued not just for recurring travel, but through other outlets as well. Credit card rewards and welcome bonuses can be one of the most popular ways to accrue a big stash of points for a lot less effort than living your life out of a suitcase.

In addition, travel credit cards can offer various money saving perks, like:

• Complimentary trip insurance.

• Savings on checked bags.

• Waived foreign transaction fees.

• Airport lounge access.

• Cash back credits that can offset the annual fee.

And more.

Here's are some of the best credit cards that offer travel-related statement credits.

If you’re building your next vacation budget based on how much you spent last year, you might need to factor in spending more on flights, hotels and eating out. Fortunately, you can still save on travel with a little planning.

To avoid the costs of eating out, head to local grocery stores — which can be a fun activity on its own — or pack snacks from home. While in an airport, head to the lounge. Many credit cards have partnerships with airport lounge networks (Priority Pass is a popular one) where you can typically expect complimentary snacks and drinks.

Methodology

NerdWallet conducted an analysis of the Bureau of Labor Statistics’ Consumer Price Index data released by the U.S. Department of Labor, which was most recently updated in February 2025 and measures prices of items like travel, groceries and cars. Prices usually change every month, but some prices change more than others.

Keep in mind, this data is based on January 2025 information, even though it is released in February 2025. Thus, prices you actually see may have actually improved (or gotten even worse) than this data, because it lags one month behind.

And even within the realm of travel, some expenses might go up, while others might go down.

The NerdWallet Travel Price Index combines data from the Consumer Price Index, weighted by the estimated spending in each category, which is based on 2019 travel expenditure data from the BLS.

Here are the spending categories considered, and how heavily each was weighted:

• Flights: 36%.

• Car rental: 6%.

• Lodging: 30%.

• Food: 21%.

• Entertainment: 7%.