As Memorial Day weekend marks the unofficial start of summer, experts warn your vacation could cost you more this year.
Rampant inflation means that the price of a hotel booking, plane ticket and dining out have all skyrocketed since around this time last year.
The most recent statistics released by the US Labor Department earlier this month show that annual inflation has increased by 4.9 percent since April 2022. Despite cooling below 5 percent, the rate still remains stubbornly above the Federal Reserve’s target of 2 percent.
Analysis of the Consumer Price Index by the Boston herald charted the average prices of ordinary travel expenses for the first four months of this year compared to 2022.
This so-called “holiday inflation scorecard” showed that the cost of getting out of town this summer has skyrocketed, and even “pleasure” spending isn’t immune to price increases.
Domestic airfares are up 16 percent this year from last year — and 9 percent since 2019.
Due to staff shortages, flights have fallen, despite the number of people traveling returning to pre-pandemic levels. This means that ticket prices are skyrocketing and airlines are making record profits.
Higher fuel costs also continue to put upward pressure on airline tickets.
According to travel booking app Hopper, the average round-trip airfare this year will peak at $349 per ticket for weekend trips on July 4.
A stay in a hotel will also cost you more this year than in 2022, according to the Boston herald – with a room that costs 7 percent more.
Discounted room rates are harder to come by and staff shortages since the pandemic continue to be a problem, driving up labor costs.
Eating out is also 8 percent more expensive this year than last year and has increased by a whopping 24 percent over the past four years.
Rising labor costs continue in the hospitality industry and the cost of food and supplies remains stubbornly high.
If you fancy a cocktail or a cold beer on vacation, it will also cost you more than last summer — with “alcohol out of the home” up 6 percent, according to the index.
Sports tickets are also up 3 percent, while “entertainment” — including going to the movies, watching a play at the theater or going to a music concert — is up 7 percent on average.
And if you’re wondering if an outdoor vacation could be more beneficial for your spending, think again.
The price of “outdoor essentials,” including camping equipment, has skyrocketed 11 percent since last year and a whopping 28 percent since 2019.
A few cocktails on holiday will also cost you 6 percent more this year than in 2022
Going to a sports match or going out for dinner will also cost you more this year than last year
However, some key vacation costs have fallen over the past year.
If you’re planning an old-fashioned road trip, you might be in luck. The cost of gasoline is down 9 percent since 2022 — and regular gas currently costs $3,582 per gallon according to the AAA.
Car rentals are down 5 percent this year, but are still up 49 percent since 2019. According to personal finance website NerdWallet, National almost always had the highest rental car prices, with average weekly rental prices approaching $700.
The cheapest car rental company, Enterprise, offered car rentals at an average weekly price of just $480.
Cruises are getting cheaper – by 2 percent this year and 6 percent overall over the past four years.
The data comes as experts warn U.S. vacationers to prepare for a “summer of hell,” predicting this weekend to be the third-busiest Memorial Day weekend since 2000.
Industry leaders have warned that such demand cannot be met through adequate planning, and could lead to chaos for travelers.
“Demand for travel this summer will be as strong as we’ve seen since before the pandemic, and possibly the strongest ever,” Geoff Freeman, president and CEO of the US Travel Association, told Forbes.
“Those kinds of demands in a system that is hopelessly underfunded and understaffed are likely to cause significant frustration for travelers.”