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As geopolitical tensions continue, overall travel costs year-over-year continue to surge, largely due to a sharp increase in airfares.
Average U.S. travel costs are 9% higher compared to this time in 2025, according to NerdWallet's Travel Price Index, which combines data from individual travel categories tracked by the Bureau of Labor Statistics' (BLS) Consumer Price Index, such as airfares, lodging, meals and rental cars.
Airfare costs are up 20.7% over the past year, while the cost of eating out and entertainment are up 3.6% and 5.5%, respectively. Lodging prices are also up year-over-year, with a 4.3% increase. To help put those numbers in perspective, overall prices for the past 12 months through April 2026 rose 3.8% before seasonal adjustment, according to BLS data.
While prices are significantly higher based on the data versus last year, travelers can still take advantage of some smart moves to reduce the price of their next trip. Check out our money-saving travel suggestions below.
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Travel costs today vs. pre-pandemic
The Travel Price Index shows a 9% change in travel prices from April 2025. That's the highest year-over-year increase since March 2023.
Relative to pre-pandemic prices, April 2026 travel costs are up 22% versus April 2019 (the last full equivalent month before the 2020 COVID-19 pandemic). That's still lower than the 30.2% price increase across all items.
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 prices from one month and one year earlier.
And to broaden the perspective, the data also compares today’s prices to prices 10 years ago. Here’s what today’s travel prices look like:
How airfares have changed
When comparing April 2026 prices to April 2025, U.S. airfares are up by 20.7% — a significant increase.
If you zoom out, the outlook is not as bleak: Compared to prices 10 years ago, airfares are up by 4.3%. However, consider that the prices for all items tracked by BLS are up 39.1% over that same period.
| How airfare prices have changed | ||
|---|---|---|
| April 2026 vs. March 2026 (MoM) | Up 6.3%. | |
| April 2026 vs. April 2025 (YoY) | Up 20.7%. | |
| April 2026 vs. April 2016 (Change over the past 10 years) | Up 4.3%. | |
So if airfares haven't grown as quickly over the past decade, why do they feel so high? There are a few reasons, including unbundling, which allows airlines to advertise lower fares (often in the form of basic economy seats that offer few frills).
Those low base fares typically come with upcharges in the form of ancillary fees to check bags, to guarantee an aisle seat or to secure early boarding. Those extra prices are not captured in this data — despite it still impacting one’s travel budget.
The biggest storyline impacting airfares right now is the Iran war, which has caused oil prices to surge. Airlines have responded by raising checked bag fees and passing on higher fuel costs to consumers. Low-cost carriers, many of which were already struggling prior to recent events, are particularly vulnerable. In May 2026, Spirit Airlines abruptly shut down after rising fuel costs made operations untenable.
Whenever airlines merge, go out of business or even pull out of key markets, that usually translates to less competition on certain routes. These situations give other airlines more pricing power to charge higher fares on certain routes.
How hotel room rates have changed
Average U.S. hotel and motel room rates are up by 4.3% over the past year. Travelers can generally expect to pay more for the same hotel room this year than they did last year.
Compared to 10 years ago, travelers may be feeling a greater pinch, as hotel room rates are up 27.0% over the past decade. However, that's still less than the 39.1% increase across all items.
| How lodging prices have changed | ||
|---|---|---|
| April 2026 vs. March 2026 (MoM) | Up 4.7%. | |
| April 2026 vs. April 2025 (YoY) | Up 4.3%. | |
| April 2026 vs. April 2016 (Change over the past 10 years) | Up 27.0%. | |
How rental car prices have changed
High rental car prices were one of the biggest stories of pandemic-era travel. Since then, prices have come down — although they remain much higher compared to before the pandemic.
Rental car prices are down 0.1% compared to the year prior.
| How car rental prices have changed | ||
|---|---|---|
| April 2026 vs. March 2026 (MoM) | Down 2.5%. | |
| April 2026 vs. April 2025 (YoY) | Down 0.1%. | |
| April 2026 vs. April 2016 (Change over the past 10 years) | Up 21.5%. | |
How restaurant prices have changed
Food prices consistently rise nearly every month, and in April 2026, the cost of food away from home was up 3.6% versus a year prior.
The cost of dining out has increased dramatically in the past decade, with April 2026 prices 50.5% higher than what they were 10 years ago. That's higher than the 39.1% inflation rate across all items, meaning restaurant prices have risen more than many other categories of goods.
| How restaurant prices have changed | ||
|---|---|---|
| April 2026 vs. March 2026 (MoM) | Up 0.2%. | |
| April 2026 vs. April 2025 (YoY) | Up 3.6%. | |
| April 2026 vs. April 2016 (Change over the past 10 years) | Up 50.5%. | |
How the price of movies, theaters and concerts has changed
Tickets for movies, theaters and concerts are also rising faster than the average rate of inflation, up by 5.5% over the past year. With the cost of dining and entertainment outpacing the rate of inflation, that could suggest that Americans are prioritizing experiences over physical things.
| How the prices of movies, theaters and concerts have changed | ||
|---|---|---|
| April 2026 vs. March 2026 (MoM) | Up 0.4%. | |
| April 2026 vs. April 2025 (YoY) | Up 5.5%. | |
| April 2026 vs. April 2016 (Change over the past 10 years) | Up 40.9%. | |
Smart money move: Use travel rewards cards to book
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:
- Savings on checked bags.
- Cash back credits that can offset the annual fee.
Here are some of the best credit cards that offer travel-related statement credits.
Top travel cards
Annual fee
$795.
$95.
Rewards earn rate
• 8 points per $1 spent on all travel booked through Chase.
• 4 points per $1 spent on bookings directly through an airline or hotel.
• 3 points per $1 spent on dining, takeout and eligible delivery worldwide.
• 1 point per $1 spent on all other purchases.
• 10 ThankYou® points per $1 spent on hotels, car rentals and attractions booked through Citi's travel portal.
• 3 points per $1 on air travel and other hotel purchases.
• 3 points per $1 on supermarkets.
• 3 points per $1 on gas stations and EV charging stations.
• 3 points per $1 on restaurants.
• 1 point per $1 on all other purchases.
Still not sure?
If you’re planning 2026 travel…
If you’re building your next vacation budget based on how much you've spent in the past, you might need to factor in spending more on all the categories that are trending up in price. Fortunately, you can still save on travel with a little planning.
When it comes to airfare, you might be better off booking those flights sooner rather than later. Booking tickets with airline points and miles can also be a great way to save. Keep in mind that while basic economy fares are cheaper, they come with additional restrictions that may be costly in case your plans change.
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 networks (Priority Pass is a popular one) where you can typically expect complimentary snacks and drinks.
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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 May 2026 and measures prices of items like travel, groceries and cars. Some prices change more than others.
Keep in mind, this data is based on April 2026 information, even though it is released in May 2026. Prices you see may have increased or decreased compared to this data, because it lags one month behind. Due to the government shutdown in 2025 that prevented the collection and release of October 2025 data, we used September 2025 data instead for any month-over-month or year-over-year percent change calculations involving October 2025 data.
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%.
How to maximize your rewards
You want a travel credit card that prioritizes what’s important to you. Here are some of the best travel credit cards of 2026:
- Flexibility, point transfers and a large bonus: Chase Sapphire Preferred® Card
- No annual fee: Wells Fargo Autograph® Card
- Flat-rate travel rewards: Capital One Venture Rewards Credit Card
- Bonus travel rewards and high-end perks: Chase Sapphire Reserve®
- Luxury perks: American Express Platinum Card®
- Business travelers: Ink Business Preferred® Credit Card
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