While travel costs don’t always jump across the board, summer months tend to see a dip across the board. This is because of the ideal weather conditions and sheer number of people traveling – especially Americans.
Prices for things like domestic flights, hotel rooms, and car rentals are expected to go up this summer, with the average cost for a week of vacation coming in at $1,138, according to the most recent data from AAA. The overall price increase is expected to average 2.2% in July, 2012, the fourth-biggest increase since the July 2008 peak, which was the highest monthly increase since 2007.
The cost of a cruise vacation is quickly becoming the norm, as the average cruise ship ticket price has moved up over the past few years. If you want to save money on a cruise, you should take advantage of lower cruise fares (than usual) before they are gone.. Read more about why are flights so expensive right now 2024 and let us know what you think.
When Americans look at the invoices and receipts they’re getting for travel-related expenses this summer, they’re performing a double-take.
Of course, there’s a catch: the cost of vacationing this summer is being compared to the same period a year ago, when the pandemic was in full swing and prices were slashed as hotel companies and airlines slashed rates to encourage people to go.
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Hotel rooms, for example, were up almost 44 percent at the end of June compared to a year before, according to statistics from hotel research company STR, according to CNN Business. According to the Consumer Price Index, airfares were 24 percent higher in May than the same month last year.
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However, the prices in 2024 are being compared to those in 2024, when the travel sector was almost at a stop.
“Most of the price increase consumers are experiencing is owing to how inexpensive goods were last year,” Adam Sacks, president of Tourism Economics, said.
According to CNN, most individuals in the travel industry are comparing expenses to 2019 pricing and booking levels rather than making year-over-year comparisons in the Consumer Price Index.
And, due to a faster-than-expected recovery in travel demand, some of those prices have returned to where they were two years ago.
For example, the national average for U.S. hotel prices in the week ending June 26 was 99.5 percent of what it was at the same time last year, according to STR.
“There are a lot of pricing variations,” Sacks added. “When you’re seeking to go to a particular place at a given time, national costs don’t matter much.”
That is absolutely correct.
A new report released by the American Hotel & Lodging Association (AHLA) shows that the road to recovery for the hotel industry is long, with 21 of the top 25 U.S. hotel markets remaining in a depression or recession.
Room income at urban (or city) hotels fell by 52% in May compared to the same month last year. For example, the COVID-19 epidemic has wiped away one-third of New York City’s hotel rooms (42,030 rooms), with almost 200 hotels shutting in the city.
Suburban and airport hotels have declined by 21 and 33 percent, respectively, while interstate, resort, and small-market/town hotels have remained unchanged.
In major cities, revenue per available room has dropped significantly. For example, income per available room in San Francisco, one of the top five most expensive cities in the United States, increased from $203 in May of 2019 to $62 in May of this year.
The kind of travel that is presently filling the coffers of investors is drive trips. The national average price for a gallon of normal gasoline is $3.13 today, up 44 percent from a year ago and a seven-year high.
Renting a vehicle is also 70 percent more expensive than it was two years ago, and 110 percent more expensive than it was a year ago.
Travel costs are set to jump this summer. The U.S. Department of Labor recently published its report on costs for airfare, food, and lodging expected for the summer travel season from June to August. The report is based on a study of 325 medium- to large-sized U.S. cities, and it is based on hourly wage rates for each city.. Read more about will flight prices go down in 2024 and let us know what you think.
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