by Mia Taylor
Last updated: 7:00 AM ET, Mon August 3, 2026
Whether it’s gas, groceries, energy bills, or yes, travel costs, it's hard to avoid the sticker shock of rising prices these days.
When it comes to travel expenses, in particular, the July Travel Inflation Report from NerdWallet reveals that average U.S. travel costs are 10% higher compared to this time in 2025. The report, which combines data from individual travel categories tracked by the Bureau of Labor Statistics' (BLS) Consumer Price Index (such as airfares, lodging, meals and rental cars), also indicates that airfare is far steeper in 2026 than it was last year, up a staggering 26.5%.
The price-tag for eating out and entertainment is also up, but more modestly at 3.4% and 3.6%, respectively. Lodging prices, meanwhile, have increased about 4.8%.
Despite these price hikes, Americans are not interested in giving up on travel. And who can blame them?
A survey of more than 3,000 people conducted by travel insurance marketplace Squaremouth found that more than half of respondents (54%) plan to cut spending on other areas of their lives to prioritize travel in 2026.
Which areas are getting the axe exactly? About 19% of survey respondents said they'll reduce retail shopping and 12% said they'll cut back on dining out in order to make more money available for travel.
If you’re reluctant to put a pause on travel as well, but would like to find ways to rein in the especially steep costs of a vacation, read on. We asked travel industry insiders to share their top tips for scaling back travel expenses amid inflation. Here’s what they had to say.
Shift your flight budget toward more budget-friendly and dollar-strong countries
Booking flights is likely the decision with the largest marginal impact on your travel budget, says Evelyn Duran, of the tour company Ecuador & Galapagos Insiders. Consumers can help reduce this cost by looking for less expensive flight destinations.
“Round-trip flights to Ecuador from Miami or Houston are currently some of the least expensive international flights, costing $400 to $600, while flights to Europe range from $900 to $1,400,” explains Duran.
Many of the countries that are less expensive to fly to also offer an especially favorable exchange rate for the U.S. dollar (meaning your vacation dollars will go further) In countries like Ecuador, Mexico, Argentina, Peru and Colombia, for instance, the U.S. dollar is especially powerful. In Mexico, $1 is currently worth about 17.50 pesos, while in Argentina $1 converts to 1,488 pesos. Similarly, in Peru, $1 will convert to 3.40 Peruvian soles and in Colombia, travelers will get 3,203 pesos for $1.
Opt for an all-inclusive tour package
You can protect yourself against continually rising travel costs by booking an all-inclusive tour package for your next vacation. In most cases, when you travel via a package tour (offered by companies like Intrepid, Trafalgar, G Adventures, Contiki, Ecuador & Galapagos Insiders, and the like), everything from restaurants to activities and accommodations is included for one set price.
“When you book an all-inclusive trip…you can lock in current prices for your entire family,” explains Duran.
Moreover, by doing a little research online, it may even be possible to find tour operators offering sales or special promotions on all-inclusive packages.
Travel during shoulder and off-season
This tried-and-true hack has been around for quite some time and is often relied upon by frequent globetrotters. Instead of visiting a destination during its peak season, such as summer in Europe, try visiting during a time that’s less popular with travelers. Think: October or November in the case of Europe, for instance.
“Traveling during the off-season or shoulder season is one of my top recommendations for travelers looking to stretch their budget without compromising the overall experience,” says Julie Crotts, a travel advisor with Fora.
“I typically suggest dates outside of peak periods, when travelers can often find more competitive rates on accommodations, flights and activities while enjoying fewer crowds.” Crotts adds.
This hack also works for theme park vacations, says Bethany Bixler, travel advisor with Wish and Wayfinder Travel, who specializes in Disney vacations.
“Shifting a Disney or Universal trip by even two or three weeks, before or after spring break or the first weeks of summer, can cut airfare and even hotel rates by a quite a bit,” says Bixler. “Families with any flexibility with school calendars are saving the most by moving off already popular travel dates.”
Consider cruises and all-inclusive resorts
Another way to help combat rising travel costs is by booking a cruise vacation or an all-inclusive resort, advises Bixler. Here too, package deals can help cap your spending and make budgeting for your trip more predictable.
“With airfare up and discount options limited this year, a cruise or an all-inclusive resort locks in food, resort and entertainment before it climbs any further,” Bixler explains. “I'm steering more budget-conscious families toward these because there's no surprise bill or resort fee after you have paid.”
Book your vacation early
This tip may not be for everyone (particularly the procrastinators), but if you’re comfortable locking in a vacation for 2027 now, it may save you a great deal of money, says Bixler.
“Cruise lines and resorts release their lowest pricing and best perks, such as free drink packages, onboard credit, and kids-sail-free promos, at the opening of booking windows,” Bixler explains.
Waiting even a few months usually means paying more for the same cabin or room category on a cruise or at a resort. Even if a lower-cost promotion comes out at a later date, you may still be able to get that promotional deal applied retroactively to the cost you paid earlier.
Use hyper local travel experts
During an inflationary travel environment, it can be helpful to work with local travel experts to craft your travel experience.
“Local travel experts have the best pricing because they have relationships with the lodges, guides, transportation providers, and activity providers, and they have the most pricing options available,” explains Vummy Kihaule, a travel expert with Tanzania Safaris.
When a local travel expert does the travel planning, you can also avoid the retail cost of booking transfers, activities, and accommodations, adds Kihaule. “Local travel experts even provide authentic activities that travelers miss when they travel plan on their own,” says Kihaule.
Practice slow travel to reduce hidden costs
Another increasingly popular hack to help scale back the cost of travel is to visit fewer places during the course of a trip and stay longer in each place. This approach is known as ‘slow travel.
“Attempting to travel to more places only adds to the cost of travel due to the hidden costs that come with moving around more like the cost of checking luggage, flights, and transfers,” says Kihaule.
Slow travel also offers the benefit of allowing you to get to know each place you visit more deeply and provides more support for local economies and businesses. It’s an approach that Kihaule says will make your journey even richer and more memorable.
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