Travel Inflation Report: November 2024

Hotel room rates and car rental prices in October have dropped compared to this time last year, but airfares are up 4.1% over the same period.

All in all, travel costs are 2% higher than they were last year, according to NerdWallet's Travel Price Index. NerdWallet's Travel Price Index 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.

That 2% increase in travel prices is roughly in line with broader inflation rates. Overall prices for the past 12 months through October 2024 rose 2.6% before seasonal adjustment, according to BLS data.

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 12% increase in travel prices from October 2019 (the last October before lockdowns), but that's still a much smaller price increase than the average increase of 22.6% across all items over the same period.

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. Given how significantly COVID-19 altered the state of travel, the data also compares today’s prices to their pre-pandemic prices. For example, October 2024 is compared to October 2019 as the last corresponding pre-pandemic month.

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

When comparing October 2024 prices versus October 2023, U.S. airfares are up by 4.1%.

But it's not all bad news. When compared to pre-pandemic prices, airfares are still down by 1.5%. That's pretty staggering, considering average prices as a whole are up by 22.6% since October 2019.

Whereas airfares are up over the past year, prices for lodging away from home — including hotels and motels in U.S. cities — dropped.

Average U.S. hotel room rates are down 4.1% versus last month, and down 0.6% versus last year.

Unlike airfares that actually fell versus pre-pandemic prices, hotel and motel prices are higher than what they were pre-pandemic. Hotel room rates today are up 12.6% versus the same month in 2019. Again, that's a far smaller bump than the 22.6% all items increase.

High rental car prices were one of the biggest stories of pandemic-era travel. They are still up an astounding 23.8% versus the same month in 2019. That's slightly 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 7% year-over-year.

Food prices consistently rise nearly every month, and this month was no exception. In October 2024, the cost of food away from home was up 3.8% versus the same month in 2023.

And prices are far higher than pre-pandemic, with October 2024 prices coming in at 29.9% higher than what they were in October 2019. 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 faster than the average rate of inflation, up by 3.5%.

They are up 19.9% versus pre-pandemic prices, which is slightly less than the overall rate of inflation for that period.

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.

Even though holiday travel prices haven't increased as much as other sectors of the economy, holiday travel is always expensive.

And sure, airports are expecting record crowds. But at the same time, many people are opting out of travel.

According to an October 2024 study conducted by KRC Research that was commissioned by Excedrin, which is an over-the-counter headache pain reliever, 76% of Americans have chosen not to travel during the holidays to avoid literal or metaphorical travel related headaches.

Of course, many will deal with the headache anyway. According to NerdWallet’s 2024 Holiday Spending Report, more than a quarter of 2024 holiday travelers (28%) are reducing their everyday spending in order to save money to pay for holiday travel expenses.

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 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 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 November 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 October 2024 information, even though it is released in November 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%.