Travel Inflation Report: September 2024

Some good news for travelers: Airfares, car rental and hotel prices in August were down compared to the same month last year.

The falling price of travel is good news for customers, considering the price of pretty much everything else is rising. In fact, average consumer prices across all items rose 2.5% year-over-year.

According to NerdWallet's Travel Price Index, the overall cost of travel is up just 1% from the same month in 2023. Meanwhile, travel prices are up 11% compared with August 2019 (the last fully-normal July before lockdowns).

In short, expect the same trip taken this year to cost slightly more than it did this time last year, but not more than the overall rate of inflation. That means other prices are rising faster than the cost of things like airfare and hotel rooms.

And even though travel prices are up 11% since pre-pandemic, that's still a much smaller price increase than the average increase of 22.7% across all items over the same period.

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

NerdWallet's Travel Price Index combines data from individual travel categories tracked by the Bureau of Labor Statistics' Consumer Price Index data, such as airfares, lodging, meals and rental cars.

Overall prices for the past 12 months through August 2024 rose 2.5% before seasonal adjustment. That's the smallest 12-month increase since February 2021.

Still, not every line item 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. Given how significantly COVID-19 altered the state of travel, the data also compares today’s prices to their pre-pandemic prices. For example, August 2024 is compared to August 2019 as the last corresponding pre-pandemic month.

Here’s what today’s travel prices look like:

When comparing August 2024 prices versus August 2023, U.S. airfares are down 1.3%. And when compared to pre-pandemic prices, airfares are also down — by an even larger margin of 6.5%. That's pretty staggering, considering average prices as a whole are up by 22.7% since August 2019.

Prices for lodging away from home — including hotels and motels in U.S. cities — dipped, too. Though, hotel prices are also slightly up from last year, rising 1.8% versus August 2023.

Unlike airfares that actually fell versus pre-pandemic prices, hotel and motel prices are significantly higher than what they were pre-pandemic — though still not as high as the 22.7% all-items average increase.

High rental car prices were one of the biggest stories of pandemic-era travel. Not only did prices drop sharply this month versus last, they have largely leveled off from pandemic-era highs. Still, they are still up an astounding 24.8% versus the same month in 2019. That's much more than the average rate of U.S. inflation.

For what it's worth, rental car prices are better now than they were a year ago. Car rental prices are down 8.4% year-over-year.

Food prices consistently rise nearly every month, and this month was no exception. In August 2024, the cost of food away from home was up 4% versus the same month in 2023.

And prices are far higher than pre-pandemic, with August 2024 prices coming in at 29.7% higher than what they were in August 2019. That's higher than the inflation rate across all items, meaning restaurant prices have risen more than many other categories of goods.

Like restaurants, entertainment prices see fairly consistent increases — save for a small dip in 2020. Prices to go see a movie or show are now up 20.9% from what they were in August 2019.

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 a sampling of cards that offer travel-related statement credits.

If you’re building your next vacation budget based on an early-pandemic-era trip, expect to pay far more now for pretty much every expense. Yet even though prices constantly feel like they’re getting higher, 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 operators (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 September 2024 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 August 2024 information, even though it is released in September 2024. 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%.