Travel Inflation Report: December 2025
Travel prices overall are flat compared to this time last year, although airfares and dining costs are on the rise.
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Updated · 5 min read
Written by
Lead Writer/Spokesperson 
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Lead Travel Writer & Content Strategist 
Overall travel costs are down year-over-year. That's largely driven by a 5.4% decrease in airfare costs and a 5.7% decline in lodging costs, likely due to the impact of the recent government shutdown.
Average U.S. travel costs are 3% lower compared to this time in 2024, 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. Due to the government shutdown that ended November 12, BLS did not publish data for the month of October 2025. For this report, month-over-month calculations use September 2025 data as a replacement for October 2025 data.
The last time travel costs were down 3% or more was in November 2023. However, take this number with a grain of salt. During the recent government shutdown, travel bookings slowed amid government-mandated flight reductions aimed at improving air safety. That dampened travel demand could have played a big role in the drop in airfare and lodging costs.
While those categories are down, other travel categories are showing increases, with entertainment costs up 4.9% and prices for eating out up 3.7% over the past year. To help put those numbers in perspective, overall prices for the past 12 months through November 2025 rose 2.7% before seasonal adjustment, according to BLS data.
While prices are lower based on the data versus last year, traveling still isn't cheap and it remains to be seen whether that trend will hold now that the government shutdown is over. However, travelers can always 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 3% decrease in travel prices from November 2024.
Relative to pre-pandemic prices, November 2025 travel costs are up 11% versus November 2019 (the last full equivalent month before the 2020 COVID-19 pandemic). That's far lower than the 26.1% 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 November 2025 prices to November 2024, U.S. airfares are down by 5.4%. This is the largest year-over-year decrease since May 2025.
If you zoom out, the outlook is even rosier: Compared to prices 10 years ago, airfares are actually down by 13.3%. It's pretty unheard of for prices to drop over that period of time, especially considering that the prices for all items tracked by BLS are up 36.6% over that same period.
| How airfare prices have changed | ||
|---|---|---|
| November 2025 vs. September 2025 (MoM) | Down 1.2%. | |
| November 2025 vs. November 2024 (YoY) | Down 5.4%. | |
| November 2025 vs. November 2015 (Change over the past 10 years) | Down 13.3%. | |
So if airfares are down over the past decade, why do they feel so high? There are a few reasons, including unbundling, where airlines advertise lower fares (often in the form of basic economy seats that offer few frills).
But low base fares typically come with upcharges in the form of ancillary fees to check bags, to guarantee an aisle seat or for early boarding. Those extra prices are not captured in this data — despite it still impacting one’s travel budget.
One storyline to watch is airline consolidation, especially as low-cost carriers struggle financially. 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 down by 5.7% over the past year. That's good news for travelers, as it means they can generally expect to pay less for the same hotel room this year than they did last year.
Compared to 10 years ago, travelers may be feeling the pinch though, as hotel room rates are up 15% over the past decade. However, that's still a good deal less than the 36.6% increase across all items.
| How lodging prices have changed | ||
|---|---|---|
| November 2025 vs. September 2025 (MoM) | Down 10.0%. | |
| November 2025 vs. November 2024 (YoY) | Down 5.7%. | |
| November 2025 vs. November 2015 (Change over the past 10 years) | Up 15.0%. | |
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.
In November 2025, rental car prices are down 2.7% compared to the year prior.
| How car rental prices have changed | ||
|---|---|---|
| November 2025 vs. September 2025 (MoM) | Down 0.8%. | |
| November 2025 vs. November 2024 (YoY) | Down 2.7%. | |
| November 2025 vs. November 2015 (Change over the past 10 years) | Up 27.7%. | |
How restaurant prices have changed
Food prices consistently rise nearly every month, and in November 2025, the cost of food away from home was up 3.7% versus the same month in 2024.
The cost of dining out has increased dramatically in the past decade, with November 2025 prices 49.6% higher than what they were in November 2015. That's higher than the 36.6% inflation rate across all items, meaning restaurant prices have risen more than many other categories of goods.
| How restaurant prices have changed | ||
|---|---|---|
| November 2025 vs. September 2025 (MoM) | Up 0.5%. | |
| November 2025 vs. November 2024 (YoY) | Up 3.7%. | |
| November 2025 vs. November 2015 (Change over the past 10 years) | Up 49.6%. | |
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 4.9% 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 | ||
|---|---|---|
| November 2025 vs. September 2025 (MoM) | Up 2.0%. | |
| November 2025 vs. November 2024 (YoY) | Up 4.9%. | |
| November 2025 vs. November 2015 (Change over the past 10 years) | Up 39.9%. | |
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 certain categories that are trending up in price. 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 networks (Priority Pass is a popular one) where you can typically expect complimentary snacks and drinks.
Win Private Travel 'AMA' ($250 value)
Get the ‘cheat codes’ to using travel points and miles so you can spend less cash. 📥 Sign up for our free newsletter before Jan. 4 and enter to win a 1:1 travel rewards coaching session.
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 December 2025 and measures prices of items like travel, groceries and cars. Some prices change more than others.
Keep in mind, this data is based on November 2025 information, even though it is released in December 2025. 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 2025:
- 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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On this page
- Travel costs today vs. pre-pandemic
- How airfares have changed
- How hotel room rates have changed
- How rental car prices have changed
- How restaurant prices have changed
- How the price of movies, theaters and concerts has changed
- Smart money move: Use travel rewards cards to book
- If you’re planning 2026 travel…
