The average domestic round-trip airfare for summer travel has reached 498 dollars, up 22 percent from last summer and 41 percent above pre-pandemic levels. Hotel occupancy rates are at 92 percent in major leisure markets, pushing nightly rates to records. Rental car availability is tight in popular destinations after companies right-sized their fleets during periods of weak demand.
Travel industry economists attribute the surge to pent-up demand colliding with constrained supply. Airlines have not fully restored all pre-pandemic routes, and hotel construction has lagged behind bookings growth. Budget travelers are increasingly turning to camping, road trips to regional destinations, and vacation rental platforms, though short-term rental prices have also risen significantly in most markets.
