Summer Travel Costs

Hi Everyone,

Memorial Day got us thinking about the start of summer vacation travels.  Well, I’ve got some good news for you!  Welcome to today’s ASAP Finance!

School is out and we’re gearing up for summer, but how much will it cost us to travel this year?

Earlier this year, many Americans were questioning travel as the market took us on a bumpy ride.  Fears have now seem to have subsided and AAA projects 45.1 million people will travel at least 50 miles from home over the memorial day holiday, up 1.4 million travelers compared to last year.

Prices have come down, particularly airfares, and with lower gas prices, road trips will increase.

Last Memorial Day, the national average for a gallon of regular was $3.59, according to AAA data. This year it’s $3.19.

If you’re planning to fly within the 50 states, you may be pleasantly surprised, as airfare is the lowest that we’ve seen in 4 years. Round-trip flights for summer travel are currently averaging $265, which is actually 3% lower than in 2024. And for international gravel, round-trip airfares are under $900, down 6% compared to last summer.

Even popular weekends like the 4^th of July are showing a more budget friendly side with airfare over this time to be about 10% cheaper than last summer. 

So what part of travel is still pricey?  That would be hotels, vacation rentals, and rental cars.  There hasn’t been much relief on overnight accommodation since the pandemic.

Prices going down for travel is great news.  But what does this mean for us personally?  Make sure that travel costs are a part of your budget.  Just because prices have gone down doesn’t mean we can spend more or plan something that wasn’t a part of our budget to begin with.  After all, a budget – with savings built in – can help to manage our ability to enjoy today while planning for the goals and needs of tomorrow.  Financial discipline helps you make informed decisions so that a planned expense can be enjoyed guilt free.

Thanks everyone and see you next month!