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Summer Travel Costs Are Expected To Rise, Due To Inflation
Americans are excited to travel this summer, but inflation could deter people from booking vacations. Recent Labor Department data reveals that airfares increased by 19% from March to April. This is the largest month-over-month airfare increase on record.
Not only are airfare prices increasing; hotel and vacation rental prices are as well.
According to data from the U.S. Travel Association, about 90% of American travelers plan to take a trip in the next 6 months. 35% plan to travel more this summer than last.
Tori Emerson Barnes, Executive Vice President of Public Affairs and Policy at the U.S. Travel Association says, “Prices are having little impact on Americans’ summer travel plans, though some travelers will take fewer or shorter trips or adjust their travel budgets.”
American airports will have about 3 million travelers in a single day for the first time ever, predicts airline executives. Millions of jobs in the global travel and hospitality industry were lost at the beginning of the pandemic because travel came to a halt. Many airlines and hotels are now understaffed and have trouble meeting the demand, resulting in higher prices.
Inflation has been affecting Americans and domestic flights dropped by 17% from March to April, according to Adobe Digital Insights.
Vivek Pandya, lead analyst at Adobe Digital Insights says, “An uncertain economic environment is pushing some consumers to reorient their travel plans.”
Dave Stephenson, Airbnb’s Chief Financial Officer says, “We think that [prices] will likely moderate throughout the back half of the year as the mix continues to adjust more toward cities, more cross-border, which have lower average daily rates, but price appreciation has remained high and sticker.”