Earlier this year, many Americans were waffling on whether to take a summer trip as the market seesawed, and the economy seemed precarious.
That fear seems to have subsided, and a rising tide of travelers are planning summer vacations and spending more to do so. Despite consumer sentiment hitting the second-lowest reading on record this month, nearly 1 in 5 Americans plan to spend more on their summer vacations this year, according to travel booking app Hopper.
Learn more: What is consumer confidence, and why does it matter?
“Memorial Day is usually a bellwether for summer travel,” Stacey Barber, vice president of AAA Travel, told Yahoo Finance. “More people are flying over Memorial Day this year compared to last, and airports will be packed with travelers headed to top destinations like Orlando, New York City, Las Vegas, and Seattle.”
AAA projects 45.1 million people will travel at least 50 miles from home over the holiday, up 1.4 million travelers compared to last year.
Falling prices have spurred that getaway spirit. “It’s fair to say that summer travel plans got off to a slow start,” said David Michael Tinsley, senior economist at the Bank of America Institute. “But prices have come down, particularly airfares, and with lower gas prices, the road trip seems to be very much in vogue.”
Last Memorial Day, the national average for a gallon of regular was $3.59, according to AAA data. This year it’s $3.19.
In June, Deborah Ryan plans to hop on a few planes to kick off her “Where the Wild Things Are” summer vacation in Tanzania with her daughter and grandson.
The trio will hit the skies, departing from Chicago for a 13-day safari alongside expert naturalists in the Serengeti and Tarangire National Park, organized by Road Scholar.
“I have never been to Africa, so it is a bucket [list] continent for me,” Ryan told Yahoo Finance. “When my grandkids turn 12, they get to pick a trip with grandma. I talk to the kids and ask, What would you like to do? What are your interests? And Gavin wanted to see animals."
Indeed, destinations in Asia and Africa have been drawing more visitors.
“We're expecting Tokyo to be huge as it has been the last couple of years,” Hayley Berg, lead economist at Hopper, told Yahoo Finance. “And then the trifecta of London, Paris, and Rome will be especially popular during the summer months. Bangkok, Thailand is a relatively new entrant, spurred by the latest 'White Lotus' season that premiered earlier this year.”
However, domestic travel is the most popular summer travel choice, with about 4 in 10 adults choosing to travel within the United States this summer, according to Bankrate.
The top states for those planning road tripping vacations are California, Florida, New York and Texas., according to Tinsley.
“Airfare is the lowest that we're seeing in four years," Berg said.
Round-trip domestic airfare for this summer is averaging $265 per ticket, down 3% compared to the same time last year for round trip tickets in June, July, and August. And on the international front, round-trip airfares are under $900, down 6% compared to last summer, she said.
Airfare to Asia is averaging $1,337 per ticket, down 14% vs last year.
“With prices dropping in over 100 of the most popular destinations of the summer, including long-haul spots like Sydney, down 23% from last year, and Hong Kong, down 16% from 2024, it’s shaping up to be one of the most affordable summers in years,” Paul Jacobs, a general manager and senior vice president at Kayak, told Yahoo Finance.
“Even peak weekends like Fourth of July are trending more budget friendly this year. In fact, July 4th airfare is nearly 10% cheaper than last summer,” he said. “Flying out midweek — like Tuesday, July 1 — is the smartest move for scoring the best deals.”
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Hotel rates, however, are not budging, according to Hopper data. Domestic hotels this summer are averaging $237 per night, while vacation rentals are averaging $172 per bedroom per night, or about $340 per night for multi-bedroom homes, according to Berg. “We haven’t seen much relief on hotel prices since the pandemic.”
Rental cars, too, are in line with the summer of 2024 at about $47 a day, she added.
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I asked the pros to weigh in with their advice for smooth and safe summer travel. Here are their top tips.
Be flexible. You can save up to $300 on hotels and over $500 on airfare if you are flexible on when you travel, according to Berg.
If you’re doing a weekend away, for example, shifting your stay to Sunday through Monday instead of Friday through Saturday saves you domestically about $86, Berg said. Internationally, it can save you hundreds of dollars.
If you can fly midweek, you can save about 20% and then shift travel out of the peak weeks of summer. The last two weeks of June, July, and the first two weeks of August are going to be the busiest.
If you shift travel to Europe to late August or September from June, you can save about $300 a ticket, according to Berg. Travel to Asia during those weeks, and you'll save about $500 a ticket over earlier summer dates.
Airfare surges in the last two weeks of June, since they're the most popular weeks of the summer for travelers from the US to go abroad, Berg said.
Book refundable fares. Refundable fares are typically higher than nonrefundable fares, but it’s often worth it if you need to cancel.
Consider these questions before you book, Berg said:
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Can you change the flight without a fee?
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If you cancel your ticket, do you get a refund?
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Do you get future travel credit if you have to cancel?
Monitor prices. If you know where you’d like to take off to, set an airfare price tracker. You’ll get alerts whenever fares dip or climb. The major travel apps, such as Hopper, Kayak, and Skyscanner offer fare tracking, as does Google Flights.
Run a search on Kayak’s Best Time to Travel tool to get an idea of when you might land the best deals. For instance, I typed in Washington, D.C., to Paris for seven days, and it suggested taking my trip in October.
Don’t procrastinate. If you want to go international, look at prices now, start monitoring, and expect to book in the next two weeks for the best prices, Berg said. If you're traveling in late August or early September, you should be booking now. For domestic trips, six to eight weeks in advance is best.
Prepare for potential disruptions. Choosing the first flight of the day, when possible, is always a good strategy to fend off delays. Once one thing goes awry, delays and cancellations have a tendency to multiply.
The mayhem for travelers flying through Newark Liberty International Airport recently, spurred by staffing shortages and radar outages, is a red flag for a larger issue.
Berg recommends adding travel insurance that covers flight disruptions. “There are shortages and staffing challenges at airports all over the world,” she said.
Consider a ‘dupe.’ If crowds and long lines bum you out, pick another city nearby or in the same country to get a similar vibe. “Overcrowding of tourists in places like Barcelona and Venice has many Americans looking for alternatives to get that cultural experience and not have to deal with locals who don't necessarily welcome them,” said Bank of America's head of Consumer and Business Products Mary Hines Droesch.
Follow the new road rules. Adults traveling within the US must have a REAL ID or other acceptable form of ID, like a passport, to board domestic flights. Americans traveling through or to the United Kingdom for six months or less will need an Electronic Travel Authorization (ETA) prior to travel. And by late 2025, a new EU travel authorization (ETIAS) kicks in. Apply online for ETIAS a few weeks before your trip.
Be a savvy money manager. If you’re leaving the US, carry a credit card that doesn't charge foreign transaction fees. Always ask for your purchases to be charged in the local currency for the best exchange rate.
Learn more: Best travel credit cards for 2025
When you need foreign cash, withdraw it from a bank-owned ATM for the best exchange rate and lower fees than a private exchange service.
Now buckle up, enjoy the ride, and savor the unexpected.
Kerry Hannon is a Senior Columnist at Yahoo Finance. She is a career and retirement strategist and the author of 14 books, including the forthcoming "Retirement Bites: A Gen X Guide to Securing Your Financial Future," "In Control at 50+: How to Succeed in the New World of Work" and "Never Too Old to Get Rich." Follow her on Bluesky.
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