by Mia Taylor
Last updated: 2:05 PM ET, Wed April 29, 2026
There are so many benefits of travel. It’s great for your health. It creates lasting memories and expands your horizons, not to mention your understanding of the world.
But it’s not necessarily great for your budget.
According to a new Travel Trends Report from travel insurer Squaremouth, American consumers are spending more than ever on travel, with average trip costs surpassing an eye-popping $7,250 for the first quarter of 2026.
That’s a 3.6% increase from the same period last year and the highest level of traveler spending recorded in Squaremouth's 23-year history.
The spike in the cost of travel is likely linked to various factors including long-term industry trends and ongoing economic challenges, as well as inflation, global uncertainty, and higher demand for premium or luxury travel experiences, according to Squaremouth.
Additional report takeaways include:
- Travel costs have increased 23% over the last 10 years, with no signs of slowing down.
- What was once considered luxury travel, including safaris, expedition cruises, and bucket-list destinations, has become mainstream.
- Today's travelers are prioritizing bigger, more experience-driven trips, and that shift is a significant driver of the rise in average trip costs.
Ramifications of global fuel crisis for travelers
Yet another factor impacting travel costs is the American and Israeli attack on Iran.
“Ongoing
global and economic factors are contributing to rising travel costs,
particularly through jet fuel prices linked to recent oil supply
disruptions due to the Iran War,” says the Squaremouth report.
As the U.S. attack on Iran plays out, fuel prices have surged due to disruptions
to the global oil supply in the Middle East, particularly the Strait of Hormuz—a
critical route that typically transports about 20 percent of the world’s oil.
In
response to the fuel challenges and soaring costs, major airlines have
been consistently raising fares, reducing flight capacity, and in some
cases, increasing checked baggage fees. Continued upward pressure on airfares is expected to last at least through summer’s end, if not longer.
Delta
Air Lines CEO Ed Bastian is facing criticism for stating during a recent earnings call that even if fuel costs decrease,
fares might not follow suit. Instead, he said the airline would "retain
any of the pricing strength" and not pass any savings on to the consumer. Instead, Bastian said lowered fuel prices would be looked at as a way to "help us boost our
margins this year and clearly into next year."
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