Travel Inflation Report: July 2024

Some good news for travelers: Airfares, car rental and hotel prices in May were down compared to the same month last year. Falling travel prices is a bright spot for customers, considering that the price of pretty much everything else is going up. In fact, average consumer prices across all items rose 3.3% year-over-year through May.

According to NerdWallet's Travel Price Index, the overall cost of travel is down 2% from the same month in 2023 and up 12% compared with May 2019 (the last fully-normal May before lockdowns). In short, expect the same trip taken this year to cost slightly less than it did this time last year, but more than it would if you had taken the trip before the pandemic.

Despite travel costs declining year-over-year, there are still things you can do to reduce the price of your trip. Check out our smart money 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 May 2024 rose 3.3% before seasonal adjustment. Still, not every individual line item experiences inflation at the same rate — especially when it comes to travel prices. Some types of trips might actually be more or less expensive than in the past, depending on if your trip involves airfare versus driving, 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 given how significantly COVID-19 altered the state of travel, the data also compares today’s prices to the same cost of those things pre-pandemic. For example, May 2024 is compared to May 2019 as the last corresponding pre-pandemic month.

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

When comparing May 2024 prices versus May 2023, U.S. airfares are down 5.9%. What's more — when compared to pre-pandemic prices — airfares are also down (ever so slightly). That's pretty staggering to see such a minimal change in airfares versus their pre-pandemic pricing. After all, average prices as a whole are up by 22.7% since May 2019.

Prices for lodging away from home — including hotels and motels in U.S. cities — did increase 1.7% month-over-month. Though, they are actually down from last year, falling by 1.7% versus May 2023.

Unlike airfares that are barely higher than 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. Though prices have leveled off, they are still up an astounding 34.8% versus the same month in 2019. Still, the costs are better now than they were a year ago. Car rental prices are down 8.8% year-over-year.

Food prices consistently rise nearly every month, and this month was no exception. In May 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 May 2024 prices coming in at 29.5% higher than what they were in May 2019. That's higher than the inflation rate across all items, suggesting that 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 are now up 20.5% from what they were in May 2019. That's just under the general rate of inflation of 22.7% for that same period.

The price for tickets to movies, theaters and concerts is up 3.4% year-over-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 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 June 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 May 2024 information, even though it is released in June 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%.