By Karen Bennett
Bankrate.com
As another travel season approaches, many Americans are researching the costs of flights and accommodations, with the caveat that while inflation has slowed, high prices continue to strain people’s budgets.
According to Bankrate’s Summer Vacation Survey, only 46 percent of U.S. adults are planning a summer trip this year. Among those who don’t plan to travel, 65 percent say they can’t afford to travel. For many who are planning a getaway, strategic financial planning is key in managing the costs and avoiding debt. Here are some average prices for common vacation expenses, which can help you budget your trip effectively.
Key Vacation Cost Statistics
- The average cost of a vacation in 2025 is $7,249, according to travel insurance marketplace Squaremouth.
- Round-trip domestic airfare for this summer is averaging $265 per ticket, which is 3 percent lower than for the same time last year, per travel booking site Hopper.
- The average nightly price of a hotel is $237 this June, July, and August. (Hopper)
How Much Does a Vacation Cost?
The average cost of a vacation in 2025 is $7,249, marking a 24 percent increase from 2024, according to Squaremouth Travel Insurance. This number can vary greatly depending on your destination, transportation costs, price of lodging, food, and entertainment.Transportation Costs
Transportation can account for a large chunk of your vacation budget, so it’s a good idea to start with these costs when planning your trip. In addition to airfare, factor in any other costs such as car rental, gasoline, tolls, and parking fees. Depending on your trip, other costs may include public transportation, ride-share services or even bike rentals.Those flying in early June or mid-July can find the best deals on airfare, while prices often spike during weekends of the Fourth of July and Labor Day, according to Hopper. It predicts fares will average $265 this summer for a round-trip domestic ticket.
Hotel and Other Accommodation Costs
Hotel prices vary dramatically depending on the location, demand, and time of year. An oceanfront hotel room in South Florida, for example, may cost more in the winter months than in summer, when deals can be found.Another option worth considering is renting a vacation home, such as with Airbnb or VRBO. Some families may find having a kitchen to prepare meals is more cost-effective than staying in a hotel and eating at restaurants. What’s more, various credit cards offer rewards for vacation rentals, which can help provide more bang for your buck. For those who don’t need an entire home—or want to pay for one—some Airbnb properties also offer the option to rent a single room.
If you’re on a tight budget and are OK with fewer comforts, hostels or a recreational vehicle park can save you money.
Money tip: When you’re comparing lodging, remember to factor in everything it includes. A hotel may cost more, but if it includes free breakfast and other perks (such as free bike rentals or complimentary shuttle service), that should be factored in.
Food and Entertainment Costs
Food and entertainment expenses can lighten your wallet if you don’t draft a thorough vacation budget. They tend to be among the last costs travelers consider when planning a trip but can add up fast. The average cost of food for one person on vacation, per day, is $96, according to Budget Your Trip, not including alcohol.While on a trip, those who are able to stock up on some groceries may be able to save a bundle by avoiding pricey restaurant meals. This is especially true if your lodging offers a refrigerator, microwave, or even a stove.
The cost of entertainment can vary greatly and depends on whether you’re traveling with kids as a family, the location and what you’re looking to do while traveling. Always look for discounts based on what you might be eligible for, including student discounts, senior rates, or discounts based on various group memberships.
Money tip: Find restaurant deals on Groupon, and visit a restaurant’s website to see if it offers a discount for signing up for e-mail or text alerts or happy hour pricing. If you’re traveling with children, research restaurants where kids eat free.
Average Cost of a Vacation by Generation
Data from Squaremouth shows that older generations spend more on travel than younger generations, on average. The Silent generation—the oldest living generation—spends about $3,106 per trip, on average. By contrast, Generation Zers spend just $1,929 per trip, on average.The higher vacation costs for older generations may be due to them having more savings, as well as more leisure time for longer trips. Still, a significant 25 percent of Gen Zers said they aren’t interested in traveling currently, Bankrate’s 2025 Summer Travel Survey found. Similar percentages of Gen Xers and baby boomers (24 percent and 25 percent, respectively) also said they’re not interested in traveling right now, the survey found.
Vacations and Inflation
Inflation is another factor that has been affecting travel plans of people across generations. During the 2024 holiday travel season, millennials were the generation most likely to change their travel plans due to inflation (86 percent), followed by Gen Zers (84 percent), Gen Xers (83 percent) and boomers (72 percent), according to Bankrate’s Holiday Travel Survey.According to Bankrate’s 2025 Summer Vacation Survey, 65 percent of those who aren’t traveling say it’s because they can’t afford it.
Vacation Budgeting Tips
Nearly one-third (29 percent) of U.S. adults traveling this summer say they will take on debt as a result, according to Bankrate’s Summer Vacation Survey.“I don’t mean to sound preachy, but it’s not a great idea to take on debt for a vacation—particularly with the average credit card rate hovering at a near-record 20.12 percent” Ted Rossman, senior industry analyst at Bankrate, says.
“There are plenty of budget-friendly ways to have fun without taking on expensive debt that you could still be lugging around years from now.”
Ways you can help avoid vacation debt, Rossman advises, include cashing in points or miles for travel or driving to your destination instead of flying.
Here are some additional tips to help you get the most trip for your money:
- Determine how much you can spend on the vacation and draft a budget.
- Start a vacation fund, such as in a high-yield savings account.
- When possible, avoid paying high prices for lodging at popular destinations by finding accommodations slightly farther away.
- Save money by visiting destinations during off-seasons.
- When planning flights, research days and times when they’re the least expensive. This could mean “taking an early flight or a late flight or a connecting flight,” Rossman says.
- If traveling abroad, find places that offer the best currency exchange rates.
- Plan meals, and work them into your budget accordingly. If you wish to eat at a high-end restaurant for dinner, choose an inexpensive meal for lunch.
- Plan what you’ll need, and pack accordingly. This can help you avoid buying potentially overpriced things on the trip that you forgot to bring, such as toiletries or over-the-counter medicine.
Bottom Line
The main budgetary components of a vacation include lodging, transportation, food and entertainment. While all aspects of a vacation can be pricey, it’s possible to lower your costs significantly through such activities as budgeting, traveling during the off-season, finding affordable ways (and places) to eat and planning early.Visit Bankrate online at bankrate.com. Copyright 2025 Bankrate.com. Distributed by Tribune Content Agency, LLC.
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