Lead
This summer many Americans are rethinking travel because costs have surged and everyday add-ons keep piling up. Tim Plyant of Austin plans to skip trips this year, citing sticker shock at fares and airport food; others report similar decisions. Industry data show travel costs are up 23% since 2019, and younger travelers are disproportionately affected. The result: more people delay or cancel vacations, and some question whether travel is becoming an unaffordable luxury.
Key takeaways
- Overall travel costs have increased 23% since 2019, according to the U.S. Travel Association.
- A poll by EF Go Ahead Tours finds 72% of Gen Z and millennials say travel prices are too high.
- Average U.S. hotel rates rose from $103 a night in 2020 to $162 a night in 2025 — about a 58% increase.
- Passengers report that unbundled airline fares now commonly exclude checked bags, seat assignments and other services that were once standard.
- Airport food and basic purchases have become pain points — travelers cite examples such as paying more than $30 for two sandwiches abroad.
- Package offerings (bundled flights, hotels, meals) and shoulder-season travel remain practical ways to lower total trip expenses.
Background
Rising travel costs reflect a mix of broad inflation, higher operating expenses for carriers and lodging, and an industry trend toward unbundling services. Since 2019 many firms have shifted to à la carte pricing, separating luggage, seat selection and in-flight services from base fares. That strategy boosted ancillary revenue for airlines but also raised out-of-pocket costs for typical travelers.
At the same time, lodging providers have adjusted services and staffing models: some properties reduce daily housekeeping and in-room amenities as a cost-control measure. For consumers whose wages and savings lag behind inflation, this combination makes discretionary travel harder to justify. Younger cohorts, who already face tighter budgets, report being most discouraged from taking trips.
Main event
Across interviews this season, consumers described concrete ways travel has become pricier. Tim Plyant, an Austin architect, says he plans to avoid traveling this summer because airport food and everyday expenses are simply too high. Others point to the steady addition of fees: checked-bag charges, paid seat assignments and extra fees for carry-on prioritization have quietly become standard on many routes.
Travel providers offer a different view. Executives and property managers note elevated input costs and labor pressures that pushed them to raise prices or pare services. Some international and full-service carriers still include checked baggage in economy fares, creating a contrast with ultra‑low-cost carriers that advertise rock-bottom base fares but add fees for nearly every service.
Hotel pricing has also changed markedly. Industry averages show room rates climbing sharply since 2020, and many hotels now operate with leaner service models. The combined effect of higher base prices plus additional surcharges at destination — from resort fees to paid amenities — means the true cost of a trip can be substantially higher than advertised.
Analysis & implications
There are three interacting forces behind the affordability squeeze: macroeconomic inflation, business strategy (unbundling and premium segmentation), and shifting operational choices by providers. Together they increase the nominal price and the unpredictability of final trip costs. For budget-conscious travelers, this means the sticker price is increasingly a starting point, not the total bill.
Consumers respond to that uncertainty in predictable ways: they delay bookings, hunt for bundled deals, or shift travel to shoulder seasons when demand — and price — is lower. Tour operators that package transport, lodging and some meals can offer clearer pricing and often lower per-person costs because of volume purchasing. These models appeal particularly to younger travelers and families looking for price certainty.
For the industry, persistent complaints about value could force a recalibration. If travelers continue to vote with their feet — postponing trips or choosing lower-cost alternatives — companies that charge more for less risk losing market share. Conversely, firms that emphasize transparent pricing, included services and tangible value could gain competitive advantage.
Comparison & data
| Year | Average U.S. Hotel Rate (night) |
|---|---|
| 2020 | $103 |
| 2025 | $162 |
This single metric illustrates a broader pattern: lodging, once a predictable portion of trip budgets, now represents a larger share of total travel spending. When combined with higher fuel, airfare base rates and an array of ancillary fees, the total cost for a typical vacation package has widened considerably since 2019.
Reactions & quotes
Many individual travelers express frustration at the new pricing landscape and the perceived shrinkage of included services.
“I’m stunned by the prices — it’s changing whether I travel at all,”
Tim Plyant, Austin architect (consumer)
Some frequent travelers lament the loss of basic inclusions and comfort on flights.
“Air travel has been stripped of what made it comfortable; now you pay extra for almost everything,”
Dave Dzurick, Tucson project manager (consumer)
Industry voices acknowledge the complexity but emphasize operational costs and changing demand patterns.
“Surprise fees and volatile prices now touch almost every part of the journey,”
Melissa DaSilva, deputy CEO, Trafalgar (tour operator)
Unconfirmed
- Whether airlines or hotels will broadly restore previously included services across the industry is not confirmed and would depend on competitive dynamics and labor costs.
- The idea that travelers will reach a single, uniform “breaking point” and stop traveling altogether is speculative; patterns will vary by demographic and region.
- Claims that all international destinations are more expensive for food and basics are anecdotal; pricing varies widely by city and currency effects.
Bottom line
Travel is measurably more expensive than it was in 2019, and the increase reflects both higher base prices and a proliferation of add-on charges. For many consumers — particularly younger adults — that combination is prompting postponed trips or different choices about when and how to travel. Practical steps that help include booking packages, traveling off-peak, favoring carriers or hotel brands that include more in their base price, and tracking total trip costs rather than headline fares.
For the travel sector, the challenge is restoring perceived value. Firms that offer clearer, more inclusive pricing or demonstrable service improvements may win back customers. Policymakers and consumer advocates will likely keep scrutinizing opaque fees because public frustration is growing and could shape demand and regulation.
Sources
- The Seattle Times — news report (original article)
- U.S. Travel Association — industry association (travel cost data)
- EF Go Ahead Tours — tour operator (poll of Gen Z and millennials)
- Trafalgar — tour operator (executive comments)
- Elliott Advocacy — consumer advocacy (background on consumer advocacy)