Here’s how to save money on your summer vacation, despite rising prices

Summer travel is on the minds of many Americans, with nearly 50% of them planning to take a trip despite concerns about inflation. But don’t fret – there’s both good news and bad news when it comes to vacation expenses this year.

Let’s start with the good news. While some costs may be on the rise, there are still plenty of ways to save money on your summer getaway. For starters, let’s talk about flight prices. Due to economic uncertainty, bookings have slightly decreased compared to last year. This has led to a decrease in airfare prices, which are down approximately 8% from the same period last year. Additionally, hotel room rates have also seen a decrease of 2.4% over the past year, while rental car costs have dropped by just over 2%.

Overall, travel costs are down 2% compared to last year’s Memorial Day weekend, as reported by NerdWallet’s Travel Price Index. This comes as a relief for travelers, especially as overall prices have risen by 2.3% through April 2025 according to the latest data from the Bureau of Labor Statistics.

Despite these savings, Americans planning to travel this summer are still willing to spend $300 more than they did last year. This could be due to the fact that many people are still embarking on international trips that were booked months in advance. However, not all expenses have seen a decrease. Ride-share fares and entertainment costs are up, with vacation-related activities costing 3.4% more this year compared to last year. Dining out has also become pricier, with restaurant prices rising by nearly 4%.

To help you save money on your summer trip, here are some tips:
– Be flexible with your travel dates and destinations to find deals on airfare.
– Set a budget for dining out to avoid overspending. Consider trying a deli for a more affordable meal.
– Utilize credit card points and airline rewards to lower your travel expenses.

By following these tips, you can enjoy a budget-friendly summer vacation without breaking the bank. Remember to plan ahead, stay flexible, and make smart choices to make the most of your travel experience.