Life is getting more expensive for Americans but that’s not stopping people from paying historically high prices to see the world.
The average trip cost in the first three months of the year $7,257, according to an analysis by travel insurance marketplace Squaremouth. The figure represents a 3.6 percent year-on-year increase and is the highest average spend since the company began tracking 23 years ago. Single-trip costs are more than $1,250 higher than they were from 2017 to 2020, the analysis revealed.
Driving up costs in part are preferences for “bigger, more experience-driven trips”, like safaris and expedition cruises, and luxury travel becoming mainstream.
Fuel prices are also part of the reason for the record-breaking travel spend in 2026. The U.S.-Israeli war against Iran has caused oil prices to skyrocket to near all-time highs since the conflict started February 28.
North American jet fuel prices nearly doubled in the weeks that followed, according to the International Air Transport Association. That led to United Airlines raising its fares by 15 to 20 percent, CEO Scott Kirby told CBS News in March. With the busy summer season approaching, Americans will likely face higher airfares.
Not only that but at least six carriers have increased their bag fees to compensate for higher fuel prices, CBS News reported Friday. Delta and Southwest raised their bag fees by $10 since the start of the war.
But it also appears that many Americans aren’t focused on getting the cheapest airline fares or hotel rooms. Some 42 percent of Americans say they’d skip a trip altogether instead of booking budget flights and lodging, Squaremouth reported.
Consumers' hunger for travel seems counterintuitive amid high daily costs and rising inflation. There’s an explanation for that, though.
Some 60 percent of travelers plan to borrow money to pay for their adventures, Nerdwallet found in a survey published in March. Within that group, 23 percent plan to buy their travel with a credit card and not pay off the purchase right away.
Another 13 percent say they’ll cover their travel costs with a cash advance, and 7 percent say they’ll pay with a payday loan.
That decision could end up costing the traveler in the long run. Some 35 percent of travelers who paid for their 2025 trip(s) with a credit card said they still carry a balance from it.
