Travel Inflation Report: April 2024
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Some good news for travelers: Airfares, car rental and hotel prices are down versus March 2023. 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 3.5% year-over-year through March.
According to NerdWallet's Travel Price Index, the overall cost of travel is down 2% from the same month in 2023 and up 15% compared with March 2019 (the last fully-normal March 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 March 2024 rose 3.5% 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, March 2024 is compared to March 2019 as the last corresponding pre-pandemic month.
Here’s what today’s travel prices look like:
How airfares have changed
When comparing March 2024 prices versus March 2023, U.S. airfares are down 7.1%. Even compared to pre-pandemic prices, airfares only rose by 2.6% in March 2024 versus March 2019. That's not a lot considering average prices as a whole are up by 22.8% since March 2019.
How airfare prices have changed | |
---|---|
March 2024 vs. February 2024 (MoM). | Up 1%. |
March 2024 vs. March 2023 (YoY). | Down 7.1%. |
March 2024 vs. March 2019 (Change since pre-pandemic lockdowns). | Up 2.6%. |
How hotels room rates have changed
Prices for lodging away from home — including hotels and motels in U.S. cities — did increase 6.7% month-over-month. Though, they actually decreased over the past year, falling by 2.4% versus March 2023.
Unlike airfares that are lower than pre-pandemic prices, hotel and motel prices are significantly higher than what they were pre-pandemic — though still not as high as the 22.8% all-items average increase.
How lodging prices have changed | |
---|---|
March 2024 vs. February 2024 (MoM). | Up 6.7%. |
March 2024 vs. March 2023 (YoY). | Down 2.4%. |
March 2024 vs. March 2019 (Change since pre-pandemic lockdowns). | Up 16.3%. |
How rental car prices have changed
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 39.3% 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.
How car rental prices have changed | |
---|---|
March 2024 vs. February 2024 (MoM). | Up 5.7%. |
March 2024 vs. March 2023 (YoY). | Down 8.8%. |
March 2024 vs. March 2019 (Change since pre-pandemic lockdowns). | Up 39.3%. |
How restaurant prices have changed
Food prices consistently rise nearly every month, and this month was no exception. In March 2024, the cost of food away from home was up 4.2% versus the same month in 2023.
And prices are far higher than pre-pandemic, with March 2024 prices coming in at 29.3% higher than what they were in March 2019. That's higher than the inflation rate across all items, suggesting that restaurant prices have risen more than many other categories of goods.
How restaurant prices have changed | |
---|---|
March 2024 vs. February 2024 (MoM). | Up 0.3%. |
March 2024 vs. March 2023 (YoY). | Up 4.2%. |
March 2024 vs. March 2019 (Change since pre-pandemic lockdowns). | Up 29.3%. |
How the price of movies, theaters and concerts has changed
Like restaurants, entertainment prices see fairly consistent increases — save for a small dip in 2020. Prices are now up 22.6% from what they were in March 2019. The year-over-year price increases are up 5%.
How the prices of movies, theaters and concerts have changed | |
---|---|
March 2024 vs. February 2024 (MoM). | Up 0.1%. |
March 2024 vs. March 2023 (YoY). | Up 5%. |
March 2024 vs. March 2019 (Change since pre-pandemic lockdowns). | Up 22.6%. |
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:
Cash back credits that can offset the annual fee.
And more.
Here's a sampling of cards that offer travel-related statement credits.
$550.
$95.
$400.
$95.
• 10 points per $1 on Chase Dining, hotel stays and car rentals purchased through Chase.
• 5 points per $1 on air travel purchased through Chase.
• 3 points per $1 on other travel and dining not booked with Chase.
• 1 point per $1 on other purchases.
• 3 points per $1 on air travel and hotels, supermarkets, gas stations and restaurants.
• 1 point per $1 on all other purchases.
• 5 points per $1 on prepaid hotels and car rentals booked directly in the Altitude Rewards Center.
• 3 points per $1 on eligible travel purchases and mobile wallet spending on Apple Pay, Google Pay and Samsung Pay.
• 1 point per $1 on all other purchases.
$100 annual hotel credit on bookings of $500 or more.
$325 annual credit.
$100 in airline incidental statement credits.
If you’re planning to travel in 2024…
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 April 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 March 2024 information, even though it is released in April 2024, so 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: 29%.
Car rental: 13%.
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 our picks for the best travel credit cards of 2024, including those best for:
Flexibility, point transfers and a large bonus: Chase Sapphire Preferred® Card
No annual fee: Bank of America® Travel Rewards credit card
Flat-rate travel rewards: Capital One Venture Rewards Credit Card
Bonus travel rewards and high-end perks: Chase Sapphire Reserve®
Luxury perks: The Platinum Card® from American Express
Business travelers: Ink Business Preferred® Credit Card
on Chase's website
1x-5x
Points60,000
Pointson Chase's website
1.5%-6.5%
Cashback$300
2x-5x
Miles75,000
Miles