If you’re planning on an escape this summer, you’re in for a mixed bag. When it comes to travel costs, I have good news and not-so-good news.
The good news is that travel expenses are generally declining, which offers some hope for your summer budget. NerdWallet reports that hotel rates have decreased by 2.4 percent over the past year, and rental car rates have declined by 2.1 percent. But what’s the biggest win for your wallet? Air travel prices have dropped by 7.9 percent. Hopper, a popular travel site, reports that the average round-trip domestic airfare for summer 2025 is just $265. Compared to last year, prices are 3 percent lower, and 8 percent lower than the same period three years ago.Yet, despite these price reductions, many Americans are still feeling the financial strain. According to some estimates, the average vacation in 2025 will cost around $7,249. This hefty price tag is likely one reason only 46 percent of U.S. adults plan a summer vacation this year, according to Bankrate’s Summer Vacation Survey. For those staying home, 65 percent cite affordability as the main reason.
