Though we’re long past the peak of the Covid pandemic and the peak of inflation in 2022, it seems that travel inflation shows no signs of letting up. Even “cheap” destinations are no longer as affordable, and already popular destinations are becoming prohibitively expensive for most people. So what can we do to cope with travel inflation?
How bad is travel inflation?
From hotels to air travel, the cost of travel has skyrocketed over the past couple of years. In the US, airline prices are up 25% over the past year. Europe is faring slightly better with air travel inflation remaining steady at about 15%, which is a far cry from pre-Covid prices. It’s certainly not as easy to find a $500-600 transatlantic fare unless you’re traveling at wildly unpopular times of the year.
Hotel inflation is not nearly as severe. In the US, it’s up 10.7% since 2019, and in the EU, the inflation rates for hotels and other accommodations were around 5.2% at the start of 2024. But these numbers didn’t quite line up with my experiences traveling this year. So I decided to look up the difference in prices for hotels and accommodations I would actually stay in, by calculating the difference between previous hotel reservation prices and current prices at either the same exact time or the same season.
Aparthotel Puerto Azul in Marbella
- February 2022 $913 for 5 nights
- February 2025 $1584
Studio Airbnb in Mostar
- Jan 2020 $79 for 3 nights
- Jan 2025 $201
Mane Village Suites in Siem Reap
- November 2018 $314 for 4 nights
- November 2024 $451
Akrotiri Beach Resort Hotel in Corfu
- July 2022 $870 for 4 nights
- August 2024 $1588
La Maioneta Carré d’Or in Nice
- July 2023 $801 for 4 nights
- August 2024 $963
The price difference is staggering, even for places that are historically more affordable like Cambodia and Bosnia & Herzegovina, even for hotels booked off-season, but especially for hotels in Europe. I’m not suggesting the travel inflation statistics are wrong, but they certainly don’t apply to the kinds of hotels or location where I would want to stay. The price of our hotel in Nice is up more than 20% and it’s only been a year. The fact is that I couldn’t afford to take a vacation today that I took just two years ago.
How to cope with travel inflation
Short of not traveling at all, there are some things you can do to mitigate the increase in the costs of travel.
Stop traveling from Friday to Sunday
Whether you’re going away for a weekend or planning a multiweek vacation, most people tend to “maximize their time off” by making the most of the weekends available when they travel. But flying on popular days like Fridays and Sundays is always more expensive, and hotels pretty much anywhere are also always more expensive on weekend and weekend-adjacent days.
Don’t take my word for it – do the math! A day of PTO is worth your day’s salary. Is it a better to take an extra two days to travel on a Tuesday if you can save $400 on airfare and $50 per night on hotel?
Get over the idea that the closest possible destination is also the cheapest
I’ve been recommending this to Americans for years. Hotels and Airbnbs are notorious rip-offs in the US, but Americans think that if they can avoid spending more than $400 on a flight, their vacation will be cheaper overall. They fail to account for that $250 a night roach motel that will immediately tip the scale, and that’s before you even go anywhere to eat, which is also exponentially more expensive in the US.
If my own anecdotal calculations are any indication, Europeans should probably start taking this advice. It’s time to enjoy the beaches in Egypt instead of Croatia or check out the food and culture in Vietnam instead of France.
Weigh the importance of comfort
I’m getting older so I’m slightly less willing to compromise on travel standards. Simply put, I’d rather not travel at all than “rough it” just to save money. But that’s certainly not true for everyone. So think about giving up higher rated hotels or more convenient transportation in order to make travel more affordable. Certain amenities like a view from your room are easy to eliminate. Buses are usually cheaper than trains even though they’re less comfortable. And you can almost always save on eating out by choosing street food or smaller hole-in-the-wall restaurants that are just as authentic (maybe even more so).
Skip the top places to visit
The downside about places that have a lot of hype and popularity at any given time is that they’re going to be the ones to experience the most price-gouging. If I learned anything from our beach trip to Krk in Croatia, it’s that it was infinitely nicer to visit than the beaches in Split and a fraction of the price.
Most of the places that are “known” for their architecture or nature are not unique to their country – so instead of going to Santorini to see the same 3 blue-domed churches, go to Folegandros or Hydra which have the exact same architecture and aren’t popular enough to be grossly overpriced.
Travel with fewer stops
Most people have the mindset that if I’ve already traveled 15+ hours to get somewhere, I want to see as much of the surrounding area as possible. So they’ll combine a trip to France with a trip to Germany or a trip to Cambodia with a trip to Thailand. But the more you move around where you travel, the more expensive your trip gets. If you’re crossing country borders, flights and trains will be more expensive. This doesn’t even account for potential visa costs. And many hotels and accommodations offer discounts for guests staying longer periods, which you can’t take advantage of if you’re staying two nights in each city.
Take a sober vacation
While the cost of eating out has gone up everywhere along with the cost of groceries, there is one sure-fire way to save a lot of money when you eat out on vacation: cut your alcohol intake! Many people drink considerably more on vacation than they do at home, which can easily take the cost of any meal from €20 per person to €45. If you commit to curbing your drinking or eliminating it altogether, you will be saving considerably on your trip. If you don’t want to stop drinking, you can still drink cheaper. Buy a local bottle of wine or a six-pack of local beers from the grocery store instead of ordering the same at a restaurant. Many places have lax public drinking laws, allowing you to enjoy a drink in the thick of it all for a fraction of the cost.
If you want to keep traveling while the cost of travel is highly inflated, you’ll have to make some changes to your travel habits. You might just find that off-the-beaten path destinations or sober vacations are a better fit for you anyway.
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