Holiday Travel Prices Soar, Experts Offer Tips to Save Money

Holiday travel this year is shaping up to be significantly more expensive, with experts urging travelers to book early and consider flexible options to mitigate soaring costs for Thanksgiving and Christmas.

Average domestic round-trip airfares for Thanksgiving are currently $402, a 31 percent increase from last year, while Christmas flights are averaging $452, up 23 percent, according to travel platform Hopper. Hotel prices are also on the rise, with Christmas stays averaging $197 per night, an 18 percent increase from 2025, while Thanksgiving rates remain relatively steady around $170.

Experts emphasize that waiting for last-minute deals is unlikely to be successful this year, as fares for popular holiday dates are expected to continue rising. Elevated jet fuel costs are a significant factor contributing to the higher prices, which are on track to be the highest in a decade for both holidays.

Navigating Peak Travel Dates and Times

Flexibility is presented as the most crucial strategy for travelers aiming to reduce expenses. This includes adjusting departure and return dates, considering alternative airports, and being open to different flight times. For Thanksgiving, traveling on the Wednesday before and returning on the Sunday after is anticipated to be particularly costly, with round-trip tickets averaging $604. Travelers could save approximately $250 per ticket by returning home on Monday or Tuesday, with fares potentially dropping to around $350.

Departing on Monday, November 23, is also expected to be cheaper than a Wednesday departure. For those willing to fly on Thanksgiving Day itself, average fares are around $371, offering a wallet-friendly option despite the holiday timing. The same principles apply to Christmas travel, where shifting departure dates away from the weekend immediately preceding December 25 can lead to noticeable savings. Comparing fares across an entire week, rather than fixing on a single date, is also recommended.

Booking Strategies and Alternative Transport

Travel experts advise against gambling on a last-minute bargain for flights, as opposed to hotels or cruises where such deals can sometimes appear. Booking flights well in advance is recommended, with Hopper urging travelers to secure flights and hotel stays before Halloween due to already elevated prices and diminishing availability. Choosing the earliest flight of the morning can also be beneficial, as it offers a better chance of departing on time and more options for rebooking in case of delays. Avoiding tight connections, especially during winter, is also advised, as is allowing extra time for layovers to prevent being stranded.

For families traveling together, driving or utilizing long-distance buses like Greyhound may prove more economical than purchasing multiple plane tickets. While Amtrak trains are another option, their fares can also increase with high demand. When considering car rentals, travelers are cautioned to examine the full cost beyond the advertised daily rate, accounting for additional driver charges, tolls, fuel policies, and one-way drop-off fees. Checking existing auto insurance or credit card benefits for rental car protection can also prevent paying for redundant coverage.

Hidden Charges and Travel Insurance

Travel insurance, often seen as an easy expense to cut, is highlighted as essential to avoid potentially larger costs from medical emergencies, evacuations, or cancellations. Experts recommend selecting a policy that matches the destination and trip type, paying close attention to medical expense and emergency evacuation limits for international travel. For domestic trips, checking existing health insurance coverage and protection for cancellations or lost baggage is advised. Purchasing travel insurance when booking a holiday can ensure cancellation cover is in place before departure.

Travelers are warned about hidden charges that can inflate the cost of bookings, such as checked baggage fees, seat selection, and airport transfers. Traveling with carry-on luggage can avoid baggage fees and offer more flexibility. For international travel, awareness of foreign transaction or ATM withdrawal fees on debit or credit cards is important, as is choosing to be charged in local currency for better exchange rates. Carrying a backup card and considering flexible booking options over non-refundable ones can prevent financial loss if plans change due to unforeseen circumstances.

Opportunities for savings may arise around Black Friday and Travel Tuesday, with hotels and cruise operators potentially offering discounts. However, experts caution that consumers should compare offers carefully to ensure genuine value rather than simply accepting advertised discounts. By remaining flexible with dates, considering alternative transportation, and scrutinizing all potential costs, travelers can still manage their holiday budgets effectively.