A recent study conducted by NerdWallet found that the cost of travel has significantly increased since 2019, with rental car prices experiencing the most substantial inflation compared to pre-COVID times. In March 2024, the cost of having your own wheels while traveling was 39.3% higher than in March 2019, despite a slight 8.8% decline from March 2023. Chicago’s O’Hare airport was identified as the most expensive airport for car rentals, with an average weekly rate of $671. Phoenix Sky Harbor International Airport and Las Vegas’ Harry Reid Airport followed closely behind, with rates of $598 and $588, respectively.
Enterprise was found to offer the cheapest rental car options, while National was identified as the most expensive. Researchers also discovered that booking in advance was often more costly than last-minute bookings, as rental car companies sometimes offer better deals closer to the rental date. Other factors contributing to the higher cost of travel include inflated restaurant prices, which have surged by 29.3% from 2019 to 2024, with a 4.2% increase in the past year alone. The cost of tickets to plays, movies, and concerts has also risen by 22.6%, representing a 5% increase from the previous year.
In addition to rental car prices, hotel room rates have also seen a significant increase, rising by 16.3% over the past five years and by 6.7% between February and March of 2024. Surprisingly, airfare costs have only increased by 2.6% over the five-year period, and are currently down 7.1% from 2023. Despite this, both American and Southwest Airlines reported losses in the first quarter of 2024, with Southwest announcing plans to limit hiring and pull out of four airports as a result. Overall, the combination of rising prices for various travel-related expenses is leading to a more expensive travel experience for consumers.
It is evident that the overall cost of travel has increased significantly in recent years, with rental car prices experiencing the most substantial inflation. Chicago’s O’Hare airport was identified as the most expensive airport for car rentals, with other major airports like Phoenix and Las Vegas also charging high rates. Despite the high cost of rental cars, researchers found that booking in advance was often more expensive than making last-minute reservations, as rental car companies occasionally offer better deals on short notice.
In addition to rental car prices, other travel expenses such as restaurant prices, entertainment tickets, hotel room rates, and airfare have also increased, contributing to a more expensive travel experience. Both American and Southwest Airlines reported losses in the first quarter of 2024, with Southwest announcing plans to limit hiring and pull out of certain airports as a result. Overall, the combination of rising prices across various aspects of travel is likely to continue impacting travelers and making vacations and trips more costly for consumers.
