Travel Inflation Report: October 2024

Car rental prices and hotel room rates in September were down compared to the same month last year. Airfares ticked up slightly — 1.6% — from last year, but that's still lower than the overall inflation rate of 2.4%.

All in all, traveling costs about the same as it did last year, according to NerdWallet's Travel Price Index. The overall cost of travel has remained unchanged since the same month in 2023. Though airfares are slightly up, the drop in other prices (including hotel rooms and rental cars) average out to a 0% increase in travel prices versus last year.

There are some 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.

The Travel Price Index shows a 10% increase from September 2019 (the last September before lockdowns). Still, that's much smaller price increase than the average increase of 22.7% across all items over the same period.

When you look at just the last year, the all items increase is much less dramatic. Overall prices for the past 12 months through September 2024 rose 2.4% 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, September 2024 is compared to September 2019 as the last corresponding pre-pandemic month.

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

When comparing September 2024 prices versus September 2023, U.S. airfares are up by 1.6%.

But it's not all bad news. When compared to pre-pandemic prices, airfares are down by 5%. That's pretty staggering, considering average prices as a whole are up by 22.7% since September 2019.

Prices for lodging away from home — including hotels and motels in U.S. cities — dipped, too. Average U.S. hotel room rates are down 4.7% versus last month, and down 3.7% 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 just 9.3% versus the same month in 2019, which is a far smaller bump than the 22.7% all items 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 27.6% 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 6.8% year-over-year.

Food prices consistently rise nearly every month, and this month was no exception. In September 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 September 2024 prices coming in at 29.8% higher than what they were in September 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 slightly less than what they were last month, down by 1.3%.

Though, that's still 19.7% more than prices pre-pandemic.

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