Travel Inflation Report: December 2024

When it comes to travel costs lately, there's good news and there's bad news for travelers. We'll start with the good news: Hotel room rates and car rental prices in November have dropped compared to this time last year. But now for the bad news: Airfares are up 4.7% compared to this time last year.

All in all, average travel costs are 4% higher than they were this time in 2024, according to NerdWallet's Travel Price Index Travel, which combines data from individual travel categories tracked by the Bureau of Labor Statistics' (BLS) Consumer Price Index data, such as airfares, lodging, meals and rental cars.

What might sting even more for people planning a big trip soon is that the 4% increase in travel prices actually exceeds broader inflation rates. Overall prices for the past 12 months through November 2024 rose 2.7% before seasonal adjustment, according to BLS data.

That said, there are some smart moves you can take now to reduce the price of your next trip. Check out our travel saving suggestions below.

The Travel Price Index shows a 14% increase in travel prices from November 2019 (the last November before lockdowns). The silver lining for travelers? That's still a much smaller price increase than the average increase of 22.8% across all items versus pre-COVID-19 pandemic.

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 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, November 2024 is compared to November 2019 as the last corresponding pre-pandemic month.

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

When comparing November 2024 prices November 2023, U.S. airfares are up by 4.7%.

But it's not all bad news. When compared to pre-pandemic prices, airfares are only up 0.1%. That's pretty staggering, considering the price of all items tracked by BLS are up by 22.8% since November 2019.

Average U.S. hotel and motel room rates are down 1.2% versus last month, but don't get too excited about this price dip. Room rates are still up 3.7% versus last year.

Unlike airfares that barely budged versus pre-pandemic prices, hotel and motel prices are higher than what they were pre-pandemic. Hotel room rates today are up 17.9% versus the same month in 2019. At least that's a smaller bump than the 22.8% all items increase.

High rental car prices were one of the biggest stories of pandemic-era travel. But after a huge spike, prices have continued to recover. In November, rental car prices fell 2.5% versus the month prior and 8% versus the year prior.

Though rental car prices are up 16.3% versus pre-pandemic, that's half of the 22.8% all items increase.

Food prices consistently rise nearly every month, and this month was no exception. In November 2024, the cost of food away from home was up 3.7% versus the same month in 2023.

The cost of dining out is far higher than pre-pandemic, with November 2024 prices coming in at 30% higher than what they were in November 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 rising slightly slower than the average rate of inflation, up by 2.1%.

They are up 20.3% versus pre-pandemic prices, which again is slightly less than the overall rate of inflation for that period.

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 December 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 November 2024 information, even though it is released in December 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%.