by Donald Wood
Last updated: 9:35 AM ET, Wed June 14, 2023
New data from the United States government’s Consumer Price
Index found that the travel industry’s prices declined in May, providing
Americans with more value when booking summer vacations.
According to the U.S. Bureau of Labor
Statistics, airline ticket prices for American carriers fell 13 percent in
May compared to the same month in 2022, the most significant decline since
March 2021.
Last month, travel booking app Hopper found that the average
price of a domestic flight in the U.S. was expected to be around
$306 this summer, a considerable drop from the $376 average last summer. Prices
for 2023 will peak at about $349 around Independence Day.
Rental car and truck prices also declined in May, dropping 12
percent year-over-year and marking the largest decline since May 2020, when the
coronavirus pandemic temporarily shut down travel.
While airfare and vehicle rental prices declined in the
latest CPI, hotel rates rose 1.8 percent in May compared to April and three
percent year-over-year. Hotel and resort rates have fluctuated in recent
months, with prices dropping three percent in April from March, but climbing
2.7 percent from February to March.
Earlier this week, data showed that hotel room rates in both
the U.S. and Europe are steadily
increasing and likely to get even more pricey, according to a report from
Reuters based on insights from hotel industry executives.
In May, data from Bloomberg.com found that companies within
the travel industry are sacrificing sales volume in favor of higher
prices ahead of the busy summer season, a method implemented during the
coronavirus pandemic that is still being utilized.
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