It’s going to be an expensive summer for American travelers as increased demand and rising prices have pushed up the cost of travel and summer activities.
Driving the news: “Definitely every single category is more expensive now than it was this time last year,” Sally French, travel rewards expert at NerdWallet, told The Washington Post.
What’s up: Travel and hospitality industry executives have noted that American consumers are planning to hit the streets this summer, especially as pandemic restrictions are lifted.
What you say: “We think this summer is going to be a gangbuster for travel,” Marriott CEO Tony Capuano told CNBC.
- Expedia said in an earnings report that gross bookings grew 58% year over year in the first quarter of 2022.
Yes but: Traveling will not be easy on your wallet. The Wall Street Journal reports that higher costs for housing, plane tickets and expenses could thwart summer plans.
fuel prices: The national median price for regular gasoline rose to $4.37 a gallon Tuesday, a new record price, writes Jacob Knutson of Axios.
- Diesel prices also hit a new record at $5.50 per gallon.
- Prices have been high since Russia’s invasion of Ukraine caused a disruption in the energy market, driving up costs.
air fares are up 12.7% year over year in February 2022, although they’re still down 14 percent compared to 2019, according to new data from the Bureau of Labor Statistics.
hotel prices are up 40 percent since March 2021, according to The Washington Post.
- New data from travel research firm STR found that the average daily hotel price was $147.15 from March 1 to March 26, the Washington Post reported.
- This is a jump from 2021, when rates averaged around $105 per night.
- And it’s higher than pre-pandemic prices. Average nightly rates in 2019 were $132.56.
- Labor shortages and higher wages for workers have led to price hikes, Carter Wilson, STR’s senior vice president of consulting, told the Washington Post.
rental car prices will also increase as there will be a shortage of rental vehicles, according to The Wall Street Journal.
- A global chip shortage and supply chain issues will result in higher demand and costs for the rental cars available.
summer camp Prices will also increase for 2022.
- Tom Rosenberg, president and CEO of the American Camp Association, told CNN that summer 2021 camp fees could be up 10% to 15% year-over-year.
- Rosenberg said the price increase was slightly driven by demand as the COVID-19 pandemic has forced some warehouses to close.