As holiday travel approaches, millions of Americans are gearing up to hit the skies. Rising airfare costs, new ways to save on flights and surprising travel trends are shaping this year’s season. Here’s what travelers should know to plan ahead for Thanksgiving, Christmas and New Year’s.
Airfare prices: a slight uptick, but still cheaper than pre-pandemic
According to September’s Consumer Price Index (CPI) inflation report, the average cost of airfare is 2% higher than it was this time last year. This marks the first year-over-year increase since March 2023. While the uptick may worry some, airfare is still relatively affordable when viewed in the broader context of inflation. Since February 2020, airfare is 25% cheaper compared to overall prices.
Though the past two months have seen consecutive increases in airfare, experts caution that this doesn’t necessarily signal a long-term trend. Despite the rise, tickets remain 19% cheaper than they were during the price peak in June 2022 and still 4% lower than in February 2020, when travel patterns were more normal.
“Even with the average price of airfare ticking upward year-over-year, we don’t necessarily see any indication that the winter holidays are going to be exponentially more expensive than last year,” says Katy Nastro, representative for Going.com.
“Since airfare has moderated coming out of the pandemic years, we are seeing typical prices for winter holiday travel, which means expensive compared to off-peak times.”
That said, Nastro advises booking soon to avoid skyrocketing last-minute prices. “Booking as soon as possible if people are considering traveling domestically for Thanksgiving, or anywhere else over the winter holidays is key to avoiding outrageous last-minute prices,” Nastro said.
Meanwhile, TSA data show a slight decline in traveler numbers this October, down 2% from recent months. This signals a potential slowing of travel volume ahead of the year-end holidays.
Google Flights’ new feature helps travelers find the cheapest flights
For budget-conscious travelers, Google Flights is rolling out a new tool just in time for holiday planning. The “Cheapest” tab, a new feature that ranks flights by price over convenience, aims to help travelers save by exploring creative itineraries. While these options may involve longer layovers, multiple airlines, or flying into and out of different airports within the same city, they present a more affordable alternative for those willing to sacrifice convenience.
This update comes just as experts recommend booking holiday airfare soon. The best deals for domestic Thanksgiving and Christmas flights are typically available in October, so now is the time to lock in travel plans.
For international travelers, Nastro notes that there are still great deals available. “Anyone with some flexibility can be in luck when it comes to snagging some great international flights over to Western Europe and even Japan. We’re seeing close-in deal availability like Boston to Paris for only $365 or Los Angeles to Tokyo for only $526, both roundtrip starting in early November. These itineraries offer savings of over half off typical prices,” Nastro said.
Holiday travel trends: Mexico tops the list and travelers spend more
Squaremouth.com, a travel insurance marketplace, told ConsumerAffairs that there are several key trends emerging this holiday season. Most notably, Mexico has surfaced as the top destination for U.S. holiday travelers for the first time in five years. Over 13% of American travelers are opting for Mexico, with other popular destinations including the Dominican Republic, the United Kingdom and Costa Rica.
Travelers are also spending significantly more on their holiday trips. The average cost of domestic travel between Thanksgiving and New Year’s has surged 58% compared to last year, with trips averaging $5,249. International travelers are shelling out even more, with a 38% increase bringing the average cost to $7,892.
This year, many are also planning further in advance and prioritizing travel insurance to safeguard their trips. Travelers are purchasing insurance an average of 70 days before departure, compared to 60 days last year. Coverage for illness, medical emergencies, and medical evacuation are top concerns, especially as flu season ramps up and winter storms loom.
