- The cost of US international flights is up 17% since April 1, and domestic flights have risen 9%, CNBC reports.
- Some hotel room rates are also higher than in 2019, but most are below pre-pandemic levels.
- An increase in bookings, the reintroduction of flight-change fees, and the reopening of major attractions are contributing to rising prices.
- See more stories on Insider’s business page.
The cost of vacations is soaring as airlines and hotels hike their prices ahead of an anticipated summer boom in travel, CNBC reports.
Prices for international flights from the US have gone up 17% since April, while domestic flights prices have jumped 9%, according to analysis by the research firm Bernstein, cited by CNBC.
A rise in demand has fueled the price jumps, with many travelers taking vacations to see family they have been separated from during the pandemic. Theme parks reopening and mask guidelines relaxing at these venues could also be contributing.
Rates are still mostly below pre-pandemic levels, but some hotel prices are even higher than in 2019. Average hotel rates in Cancun, Mexico were roughly $205 a night in early May, up from $45 a year ago and $160 in 2019, according to data from hospitality firm STR, cited in CNBC’s report.
Room rates in New York City are also rising – rooms costing an average of $123 a night last year rose to an average of $151 in early May. This is is still below 2019 levels, when these rooms went for $269, according to STR.
Airlines are also reintroducing strict rules on their cheapest “basic economy” fares, such as change and cancellation fees, which they suspended last year to encourage more travelers to fly.
Delta Air Lines said customers who bought tickets after April 30 are no longer eligible to change or cancel their flight for free under its COVID-19 waiver, following a standard 24-hour cancellation window.
The cost of gasoline has also risen to its highest level in seven years, topping $3 following the Colonial Pipeline hack in early May, making road trips more expensive.
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