With the cost of travel increasing 26% since 2019, some Americans are ditching their vacation plans. Here's how you can keep travel costs down in 2026

The cost of travel has climbed sharply in recent years, up 26.3% since 2019, according to the U.S. Travel Price Index (1). Airfare is higher, hotel rates are up and food and beverage prices are also climbing. And the add-ons — things like booking fees, baggage charges, resort fees and airport meals — can quietly inflate a vacation budget long before you’ve boarded economy class.

For some households already juggling higher grocery bills, mortgage payments and credit card interest rates, that extra strain is enough to scrap travel plans altogether. Others are scaling back by shortening trips, choosing road travel over flights or staying closer to home.

So, what does a “normal” vacation cost now, and when does a trip cross the line from a needed escape into financial stress?

The current cost of vacationing

As we touched on earlier, airfare and food and beverage are both up year over year — 2.2% and 4%, respectively. Hotel costs also jumped on average from $103 in 2020 to $162 per night in 2025, according to USA Today (2), but travelers say it’s those pesky booking fees that really hike lodging prices up.

"Nearly every part of the journey, from flights and hotels to everyday add-ons, comes with surprise fees and fluctuating prices," Melissa DaSilva, deputy CEO of the tour guide company Trafalgar, told USA Today. "Many travelers are waiting longer to book, hunting for the lowest fare, and looking for more price certainty up front."

A mid-range vacation for two travelers can cost more than $4,500 per week, according to real estate company Pacaso (3). Domestic round-trip flights cost an average of $378 per person, while international flights cost roughly $1,217 per person. Vacation rental properties also charge an average of $314 per night.

Once you add food, activities, rental cars, airport parking and those nickel-and-dime fees, that mid-range vacation can start to feel like a luxury trip. But is that exactly what you’re getting?

Increasing cost, decreasing quality

The costs for hotels and flights are on the rise, but making things worse is the fact that travelers often complain that the quality of service doesn’t match what they’re paying for. These days, many benefits that were once included in an airplane ticket — like carry-on luggage, one free checked bag and choosing your seat — are now locked behind paid upgrades.

"Airlines have removed any vestige of comfort," Arizona traveler Dave Dzurick told USA Today. "A checked bag and a seat assignment used to be part of the ticket – now you have to pay extra for it. At least they're not charging to use the bathrooms … yet."

The same goes for lodging, according to some travelers who believe hotels are now less likely to provide free bathroom essentials or change bedsheets daily. Complimentary breakfast might also be on the chopping block, with some hotel chains testing programs where free breakfast becomes an add-on at booking (4).

Meanwhile, cost increases in the travel industry have been created by many of the same routine culprits: increasing wages and fuel hikes, as well as food and supply chain constraints. Travel, however, is just one area where American families are feeling the squeeze, and according to an NPR survey, many families report they simply can’t afford any travel (5).

"People are traveling more by car and doing more road trips, as an attempt to save costs in terms of transportation," Becky Liu-Lastres, a professor at the Dedman College of Hospitality at Florida State University, told NPR. "They will choose nearby destinations, meaning that they are not going overseas. They're more likely to travel domestically, and they will cut short the length."

How to travel on a budget

While some families are cutting travel plans for the year entirely, making room in your budget for a decent getaway is still possible. However, you may need to be strategic with your planning.