Travel Inflation Report: March 2024

Travel prices are mostly rising again, but the good news for consumers is that at least airfares continue to fall.
Sam Kemmis
Sally French
By Sally French and  Sam Kemmis 
Updated
Edited by Meghan Coyle

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Some good news for travelers: Airfares are cheaper than they were this time last year.

Last month, airfares were down 6.1% versus the same month in 2023, and they are even slightly lower than what they were in February 2020, before the pandemic. That’s according to the latest set of Consumer Price Index data released in March 2024 from the Bureau of Labor Statistics, which is based on February 2024 prices.

Car rentals price are also lower — down 10% versus February 2023. Hotel prices barely budged since last year, down a nominal 0.9%.

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 3.2% year-over-year through February.

According to NerdWallet's Travel Price Index, the overall cost of travel is down 1% from the same month in 2023 and up 12% compared with February 2020. In short, expect the same trip taken this year to cost slightly less than it did this time last year (largely due to the steep drop in airfares), but more than it would if you had taken the trip before the pandemic.

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 February 2024 rose 3.2% 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, February 2024 is compared to February 2020 as the last corresponding pre-pandemic month.

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

How airfares have changed

When comparing February 2024 prices versus February 2023, U.S. airfares are down 6.1%. Even compared to pre-pandemic prices, airfares are down a marginal 0.5% in February 2024 versus February 2020.

How airfare prices have changed

February 2024 vs. January 2024 (MoM).

Up 6.6%.

February 2024 vs. February 2023 (YoY).

Down 6.1%.

February 2024 vs. February 2020 (Change since pre-pandemic lockdowns).

Down 0.5%.

How hotels room rates have changed

Prices for lodging away from home — including hotels and motels in U.S. cities — did increase 3.7% month-over-month. Though, they actually lightly decreased over the past year, falling by a nominal 0.9% versus February 2023.

Unlike airfares that are lower than pre-pandemic prices, hotel and motel prices are significantly higher than what they were pre-pandemic.

How lodging prices have changed

February 2024 vs. January 2024 (MoM).

Up 3.7%.

February 2024 vs. February 2023 (YoY).

Down 0.9%.

February 2024 vs. February 2020 (Change since pre-pandemic lockdowns).

Up 13.8%.

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 23.6% versus the same month in 2020. Still, the costs are better now than they were a year ago. Car rental prices are down 10.1% year-over-year.

How car rental prices have changed

February 2024 vs. January 2024 (MoM).

Up 3.4%.

February 2024 vs. February 2023 (YoY).

Down 10.1%.

February 2024 vs. February 2020 (Change since pre-pandemic lockdowns).

Up 23.6%.

How restaurant prices have changed

Food prices consistently rise nearly every month, and this month was no exception. In February 2024, the cost of food away from home was up 4.5% versus the same month in 2023. And prices are far higher than pre-pandemic, with February 2024 prices coming in at 25.5% higher than what they were in February 2020.

How restaurant prices have changed

February 2024 vs. January 2024 (MoM).

Up 0.1%.

February 2024 vs. February 2023 (YoY).

Up 4.5%.

February 2024 vs. February 2020 (Change since pre-pandemic lockdowns).

Up 25.5%.

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 19.6% from what they were in February 2020. The year-over-year price increases are up 6.2%.

How the prices of movies, theaters and concerts have changed

February 2024 vs. January 2024 (MoM).

Up 0.8%.

February 2024 vs. February 2023 (YoY).

Up 6.2%.

February 2024 vs. February 2020 (Change since pre-pandemic lockdowns).

Up 19.6%.

If you’re planning to travel in 2024…

Especially 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.

Paying for travel with miles and points 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.

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 March 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 February 2024 information, even though it is released in March 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:

Travel Cards from Our Partners
Chase Sapphire Preferred Credit Card

on Chase's website

Chase Sapphire Preferred® Card
5.0
NerdWallet Rating
Rewards rate

1x-5x

5x on travel purchased through Chase Ultimate Rewards®, 3x on dining, select streaming services and online groceries, 2x on all other travel purchases, 1x on all other purchases.

Points

Intro offer

60,000

Earn 60,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That's $750 toward travel when you redeem through Chase Ultimate Rewards®.

Points
Chase Freedom Unlimited Credit Card

on Chase's website

Chase Freedom Unlimited®
5.0
NerdWallet Rating
Rewards rate

1.5%-6.5%

Enjoy 6.5% cash back on travel purchased through Chase Travel; 4.5% cash back on drugstore purchases and dining at restaurants, including takeout and eligible delivery service, and 3% on all other purchases (on up to $20,000 spent in the first year). After your first year or $20,000 spent, enjoy 5% cash back on travel purchased through Chase Travel, 3% cash back on drugstore purchases and dining at restaurants, including takeout and eligible delivery service, and unlimited 1.5% cash back on all other purchases.

Cashback

Intro offer

$300

Earn an additional 1.5% cash back on everything you buy (on up to $20,000 spent in the first year) - worth up to $300 cash back!

Capital One Venture Rewards Credit Card

on Capital One's website

Capital One Venture Rewards Credit Card
4.7
NerdWallet Rating
Rewards rate

2x-5x

Earn unlimited 2X miles on every purchase, every day. Earn 5X miles on hotels and rental cars booked through Capital One Travel, where you'll get Capital One's best prices on thousands of trip options.

Miles

Intro offer

75,000

Enjoy a one-time bonus of 75,000 miles once you spend $4,000 on purchases within 3 months from account opening, equal to $750 in travel.

Miles
See more travel cards
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