Holiday Travel Costs Expected to Hit 10-Year High Due to Rising Airfares and Hotel Prices
Travel data from Hopper indicates that the upcoming winter holiday season is projected to be the most expensive in a decade. Domestic airfares for Christmas are expected to average $452, representing a 23% increase over 2025, while Thanksgiving fares are forecasted to rise by 31% to an average of $402. Hotel prices for the Christmas period are also climbing, with averages reaching $197 per night, up 18% year-over-year. The surge in travel costs is attributed largely to elevated jet fuel prices driven by geopolitical tensions involving Iran. To mitigate these rising expenses, analysts suggest consumers utilize travel rewards programs and co-branded credit cards, such as those offered by Southwest Airlines through Chase, to offset fees and earn points for future trips.
