I’m not going to sugarcoat it: travel has always been a costly hobby, and it’s only gotten more expensive. Since 2020, travel prices have climbed 17 to 26 percent. Hotel rooms that used to cost $130 in 2019 now average $160. Airfares bottomed at $245 during the pandemic and have since climbed to nearly $400 on average. Maybe over a single night this doesn’t hurt so much. But when calculating costs over a one-to-two week trip? It’s no wonder forty percent of Americans who’ve lost interest in going on a trip to Europe cite cost as the primary reason.
The good news is that the worst appears to be behind us. Airfares are down 5.4 percent year-over-year, rental cars about the same declining 5 to 6 percent annually, and accommodation options have improved. Even better, travelers who plan strategically can still save a hefty amount off their total trip cost through some specific, proven tactics.
Here’s what actually happened to prices, what got hit hardest, and exactly how to work around it so you won’t have to sacrifice that next adventure.
What Got Hit Hardest
Rental cars experienced the most dramatic inflation of any travel category. When companies like Hertz and Avis sold off a ton of their fleet to generate emergency cash in 2020, they inadvertently created a future supply crisis. When demand roared back faster than anticipated, the semiconductor shortage prevented companies from manufacturing enough cars to replenish their fleet.
The Rental Car Crisis
The result was a staggering 48.4 percent price increase in 2021 alone, the largest year-over-year jump on record.
Prices peaked at $258 per day in July 2021, with some Hawaii locations hitting $700 daily.
Even now, rental car prices remain about 25 percent above 2020 levels.
Airfares followed a similarly dramatic arc. After initially dropping 18.4 percent in 2020, ticket prices exploded 28.5 percent in 2022. Between November 2021 and May 2022, airline tickets surged 63 percent in just six months.
Luxury hotels have quietly had the biggest surge in pricing. Data shows luxury hotel rates reached 70 percent above 2019 levels by 2024, with the number of U.S. properties charging $1,000 or more per night nearly quadrupling from 22 to 80.
Luxury Hotel Surge
Luxury hotel rates reached 70 percent above 2019 levels by 2024.
U.S. properties charging $1,000+ per night nearly quadrupled from 22 to 80.
Meanwhile, budget and economy hotels have struggled to raise prices meaningfully, which is good news for cost-conscious travelers.
Dining out has also taken a significant bite out of travel budgets. Restaurant prices have climbed roughly 24 percent since 2020, with cumulative increases of nearly 50 percent over the past decade. For travelers who eat out for every meal, that adds up quickly over a trip.
Standard lodging has seen more moderate increases compared to luxury properties. While the average daily rate climbed from $103 in 2020 to $159 in 2024, that represents only about a 21 percent increase from 2019’s rate of $131.
How Travelers Can Still Save
The research points to several strategies that can deliver meaningful savings. With some strategic planning and flexibility, you can significantly reduce your total trip cost.
Embrace Shoulder Season
April through May and September through October offer the largest savings, with flights running 40 to 50 percent below peak period pricing. A hotel room that costs $700 per night in peak season might drop to $500 or less in shoulder season. One third of travelers now specifically plan trips around off-peak timing.
Post-Labor Day represents a particular sweet spot, with average domestic tickets dropping $100 and international fares falling $200 by mid-October.
Shoulder Season Savings
Flights run 40 to 50 percent below peak pricing in April-May and September-October.
A $700/night peak-season hotel might drop to $500 or less in shoulder season.
International fares can fall $200 by mid-October compared to summer peaks.
Look Beyond the Usual Suspects
The most overtouristed destinations often carry the steepest price tags. Iconic spots like Iceland, Barcelona, and the Greek islands have seen costs surge as visitor numbers explode, with prices climbing alongside crowds.
Meanwhile, emerging destinations offer remarkable value precisely because they haven’t been discovered by mass tourism yet. Central Asian countries, parts of Southern Africa, and lesser-visited island nations often cost a fraction of their famous counterparts while delivering experiences that feel genuinely adventurous rather than packaged.
The savings from choosing a destination that’s not yet on everyone’s Instagram feed can easily cover the cost of an extra week on your trip. And you’ll come home with stories that aren’t the same as everyone else’s.
The Bottom Line
The most dramatic price surges are behind us. The 48 percent rental car spike of 2021 and 28 percent airfare explosion of 2022 have given way to declining or stable prices across most categories. New hotel supply is coming online (5,200 or more properties expected by end of 2025), rental car fleets have recovered, and airlines are adding capacity.
Travel isn’t cheap, and structural factors like labor shortages and sustainability mandates will keep some upward pressure on prices. But strategic planning, flexible timing, and a willingness to consider alternative destinations can still unlock significant savings. The difference between an affordable trip and an overpriced one often comes down to when you book, when you fly, and where you’re willing to go.