by Mia Taylor
Last updated: 4:50 PM ET, Mon August 17, 2026
Prices on everything from gas to groceries and travel have been steadily rising for the past year and a half. But at least with regard to travel costs, there may be some relief on the horizon.
Newly released data from the travel platform KAYAK shows that prices are finally declining, and they’re doing so just in time for Labor Day weekend.
Consumers can expect anywhere from 11% to 19% price drops across airfare, hotels and rental cars over the coming months, according to KAYAK, whose data compares peak summer prices (June through early August) with shoulder-season prices (end of August through the end of October).
Specifically, according to KAYAK, prices will decline in the following categories:
- Airfare: - 11%
- Hotel prices: - 11%
- Rental car prices: - 19%
Year-over-year travel costs remain elevated, according to NerdWallet's August Travel Inflation Report. Airfare continues to be the biggest driver behind that reality, up a whopping 25.5% over the past year amid the U.S. - Israel attack on Iran, which has led to the closure of the Strait of Hormuz and a shortage of jet fuel.
KAYAK's data, however, indicates that domestic fares have been declining since their May peak and international fares are now the lowest they've been since the end of March.
For those traveling over Labor Day weekend, here’s what KAYAK is seeing:
- Europe and Asia are hot: Interest to the region has increased between 15% and 24%
- Best day to save: Traveling on Saturday, September 5 can save you $50 domestically and between $100–$200 internationally compared with Thursday or Friday
- Hawaii is a deal: Hawaiian destinations, including the Big Island, Oahu, and Kaua’i, are seeing some of the biggest airfare drops this fall, with fares falling as much as 19%.
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