Anyone planning to visit family or friends this holiday season may face a painful shock at checkout, with airfares, hotel rooms and rental cars all becoming more expensive.
Travel platform Hopper says the average domestic round-trip fare for Thanksgiving is now $402, a 31 percent increase from last year. Christmas flights are averaging $452, up 23 percent.
Travel experts warn that postponing arrangements could be particularly costly this year.
We asked specialists how travelers can keep expenses under control, from flying on the holiday itself and comparing alternative transport to cutting back on unnecessary add-ons.
Above all, flexibility can be a powerful money-saving tool. Changing your travel dates, departure airport or flight time may make a significant difference.
Sally French, a travel analyst with personal finance website NerdWallet and co-host of the Smart Travel podcast, told Our News Outlet that travelers should not assume last-minute airfare bargains will appear.
Waiting for fares to drop could easily backfire. Prices for the most popular holiday dates are expected to climb between now and Christmas, and both holidays are on track to record their highest airfares in a decade. Rising jet fuel costs are adding to the pressure.
Hotel prices are rising as well, although the increases differ by holiday. Christmas stays are averaging $197 per night, 18 percent higher than in 2025, while Thanksgiving rates remain comparatively stable at about $170.
Thanksgiving and Christmas are among the busiest travel periods of the year, making last-minute bookings a potentially expensive gamble
Sally French, a travel analyst at personal finance website NerdWallet and co-host of the Smart Travel podcast
Adjust your dates — and consider flying on Thanksgiving
Following the traditional pattern of flying the Wednesday before Thanksgiving and returning the Sunday after the holiday could be one of the costliest choices this year.
Hopper estimates that domestic round-trip tickets with a return on Sunday, November 29, will cost an average of about $604.
Returning on Monday or Tuesday, however, could bring the average fare down to roughly $350 — a potential saving of up to $250 per ticket.
Flying to your destination on Monday, November 23, is also expected to be cheaper. Average fares are projected at $370, compared with approximately $420 for a Wednesday departure.
Travelers prepared to give up some time with relatives could save even more by flying on Thanksgiving Day, when average fares are around $371.
‘I know, nobody wants to spend Thanksgiving morning at the airport,’ said French. ‘But since the holiday itself is usually one of the cheapest days to fly during the holiday season, this is the easiest way to save.’
The strategy can work at Christmas, too. Moving a trip away from the weekend immediately before December 25 may lead to substantially lower fares.
Susannah Streeter, a personal finance expert at Wealth Club, recommends searching across the entire week instead of focusing on one preferred departure date.
‘With demand surging around Thanksgiving and Christmas, the cost of getting from A to B can take a hefty bite out of holiday budgets,’ Streeter told Our News Outlet.
‘If you can shift your departure by a day or two, compare fares across the week rather than locking yourself into a particular date. Nearby airports and different departure times are also worth checking.’
For travelers willing to trade some family time for a lower fare, flying on Thanksgiving Day could be a surprisingly affordable option, with average tickets around $371
Susannah Streeter, a personal finance expert at Wealth Club
Book sooner, fly early and do not count on a last-minute deal
Travelers waiting for a major airfare reduction may need to reconsider their approach.
French said that while last-minute discounts can occasionally emerge for hotels and cruises, affordable flights generally become harder to find as departure approaches.
She recommends booking instead of hoping prices will suddenly fall. Hopper is likewise encouraging travelers to reserve flights and hotels before Halloween, warning that prices are already high and availability is likely to tighten further.
After the ticket is purchased, the departure time can matter almost as much as the date. French suggests choosing the first flight of the morning because delays often compound throughout the day as aircraft and crews are affected by earlier disruptions.
An early flight is more likely to leave on schedule. If a problem does arise, passengers also have more options for being rebooked later that day.
She advises avoiding short connections as well, especially during winter, when storms and other severe weather can quickly disrupt flight schedules.
When a layover cannot be avoided, building in extra connection time may prevent an overnight airport stay if the first flight is delayed.
A nonstop ticket may cost more upfront, but during the year’s busiest travel period, the reduced risk of missed connections could make it worthwhile.
Amtrak can be a practical option on suitable routes, although rail and bus fares may also increase when holiday demand is high
Kara Gammell, a personal finance expert at MoneySuperMarket
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Before booking a flight, compare driving, buses and trains
For families traveling together, driving may cost considerably less than purchasing a separate airline ticket for every passenger.
Streeter recommends calculating the complete cost of a road trip versus flying, including baggage charges, airport transfers, parking and any rental car expenses.
Long-distance bus services such as Greyhound can also offer a lower-cost route between US cities, particularly when tickets are purchased early and peak travel times are avoided.
Amtrak is another option on certain routes, though travelers should remember that train and bus prices can rise when demand surges.
A longer journey does not have to be dull. Downloaded films, podcasts, games and playlists can help keep passengers occupied along the way.
For anyone renting a vehicle, the advertised daily rate tells only part of the story. Fees for extra drivers, tolls, fuel, and returning the car to a different location can quickly push up the final bill.
Kara Gammell, a personal finance expert at MoneySuperMarket, recommends reading the terms carefully before signing a rental agreement.
She also suggests checking whether an existing auto insurance policy or credit card includes suitable rental protection before paying for an additional policy.
The details matter, however. Liability coverage is not necessarily the same as protection against damage to the rental vehicle, so travelers should confirm exactly what their policy provides.
Choose travel insurance that suits your destination and itinerary instead of automatically selecting the cheapest policy.
Cutting travel insurance could prove an expensive mistake
When budgets are tight, travel insurance may seem like an easy way to save. Yet skipping cover can expose travelers to a far larger bill if their plans go wrong.
An overseas medical emergency, emergency evacuation or cancelled trip could cost thousands of dollars, especially when flights, hotels and activities have already been paid for and cannot be refunded.
Streeter says travelers should select a policy based on their destination and the nature of their trip, rather than simply choosing the lowest price.
For international travel, the limits for medical treatment and emergency evacuation deserve particular scrutiny.
Those traveling within the US should review what their existing health insurance covers away from home, as well as whether they have protection for cancellations, delays and lost luggage.
Gammell also recommends buying travel insurance when the trip is booked rather than waiting until departure is close. Subject to the policy’s terms and conditions, this can ensure eligible cancellation coverage is active sooner.
Both experts recommend reviewing credit card benefits and existing insurance policies before purchasing extra protection. Paying twice for the same coverage is unnecessary.
Before choosing non-refundable hotel or travel bookings, consider the financial consequences if your plans later change
Beware hidden fees — and watch for holiday promotions
The eye-catching price shown at the start of a booking can be misleading. A growing number of add-ons may transform an apparent bargain into an expensive holiday.
Checked bags, seat assignments, airport transfers and additional insurance can all add significantly to the final total.
French recommends using carry-on luggage whenever practical. This avoids baggage fees and can make it easier to switch flights if plans change unexpectedly.
International travelers should also find out whether their debit or credit cards charge foreign transaction or ATM fees. When making purchases overseas, selecting the local currency instead of US dollars will often provide a more favorable exchange rate.
Streeter advises carrying a backup card separately from the primary one in case it is lost, stolen or declined. She also cautions against choosing non-refundable hotel or travel reservations without considering what could happen if the itinerary changes.
Paying slightly more for a flexible booking may ultimately be cheaper if illness, severe weather or an unexpected family emergency forces a cancellation.
Cruise fares require the same careful examination. Port fees, gratuities, drink packages, Wi-Fi, shore excursions and transportation to the port can all come on top of the advertised price.
Gammell told Our News Outlet that travelers should create a realistic budget before leaving, covering transport, accommodation, meals, activities and everyday purchases.
‘Ultimately, the cheapest headline price won’t always represent the best value. Taking a little time to compare the full cost and stripping out extras you don’t need can make a real difference to your holiday budget,’ said Gammell.
There may still be opportunities for travelers hoping to arrange a festive break without paying the highest seasonal rates.
French expects travel companies to promote discounts around Black Friday and Travel Tuesday, with hotels and cruise lines potentially among the businesses offering deals.
She said some travel brands are likely to target customers who have been priced out of vacations by rising costs.
Even so, consumers should compare the details carefully rather than assume every advertised markdown is a genuine saving.
With some date flexibility, a willingness to travel just outside the busiest periods and an openness to alternative transport, a holiday-season trip does not have to cost a fortune.
