September 3rd 2025.
Have you ever had a dream vacation in mind, one that you've been planning and saving for, only to have the costs spiral out of control? It's a common problem, especially during the holiday season when millions of Americans are traveling. While some expenses, like plane tickets and hotel reservations, are expected, there are often hidden costs that sneak up on us. Fortunately, Way.com has done the research and breakdown of holiday travel costs, so you can plan smarter this year.
So, just how much does it cost to travel within the US during the holiday season? According to Google Flights, ticket prices start to rise around 50 days before departure. And for those planning to stay in a hotel, a recent analysis by CoStar Group found that prices typically increase by about 2% or more compared to the same time the year before. Even when hotels aren't fully booked, they still tend to raise their prices during the holiday season.
But it's not just the big expenses that can put a dent in your holiday budget. It's the smaller, last-minute costs that often get overlooked. Things like airport parking, seat selection, baggage fees, and even pet boarding fees back home can add up quickly. These expenses may not be included in your initial travel plans, but they can certainly make a significant impact on your overall spending.
Let's break down the holiday travel expenses a bit further. For example, airport parking is often one of the most overlooked expenses, and it tends to see a price spike during the holiday season. According to Way's airport parking reservation data, off-site parking prices increase by an average of 8% during Thanksgiving week and around 12% during Christmas week. This means that if you're flying from airports with already expensive parking rates, such as Los Angeles, Denver, LaGuardia, John F. Kennedy, Chicago O'Hare, or Newark, you can expect to pay even more. And don't forget about on-site parking, which is typically even pricier and fills up quickly, leaving late-bookers with limited and expensive options.
If you're thinking about taking a train instead of flying, be aware that surge pricing can also impact your expenses. Amtrak, like many other travel companies, uses dynamic pricing, and customers have reported fare increases before Thanksgiving and Christmas. This means that waiting until the last minute to book your train tickets could end up costing you more.
Driving may seem like a cost-effective option, especially with the average U.S. retail gasoline prices dropping in recent years. However, as more and more people choose to drive during the holiday season, traffic and congestion can add to your travel costs. A projection by AAA estimated that 71.7 million people would travel by car during the Thanksgiving holiday week in 2024, which is about 1.3 million more than the previous year. And if you're traveling in cities like New York, Boston, Seattle, or D.C., you can expect double the traffic, according to INRIX's forecast for December 22, which was predicted to be the worst day for road travel in 2024.
So, how much does the average American spend on holiday travel? According to research from Deloitte, the average traveler is expected to spend $3,294 on their longest holiday trip in 2024. And that's not including those unexpected expenses that we mentioned earlier, like parking, tolls, and pet-boarding. So, if you find yourself with a lighter wallet in January, you're not imagining it!
You may be wondering why everything seems to cost more during the holidays. Well, there are a couple of reasons for this. First, there's an increase in demand for travel during Thanksgiving, Christmas, and New Year's, as many people want to be with their families during this time. This high demand allows airlines and travel accommodation providers to raise their prices. Additionally, many companies now use dynamic pricing, which means they adjust their prices during peak periods to maximize their revenue. This combination of high demand and limited supply can drive up the costs of flights and accommodations. And don't forget about add-ons like seat selection and baggage fees, which can also increase during peak travel times.
According to Google Flights data from 2024, the cheapest time to book your holiday flights is 58 days before the departure date. Waiting until the last minute to book your flights can result in higher prices. For example, in late 2024, the average round-trip airfare for Christmas was $406, which was 4% higher than the same time in 2023. So, if you want to save money on flights, it's best to book at least by the end of October.
But with so many different modes of transportation available, which one is the most cost-effective for holiday travel? Well, it depends on a few factors, such as your budget, distance, and flexibility. Let's take a closer look at the pros and cons of driving, flying, and taking the train during the holiday season.
Driving is often the most cost-effective option for families or groups traveling together, especially if you split the expenses between passengers. According to AAA, the average cost per mile for a mid-size sedan is 70.38 cents, which includes gas, maintenance, insurance, and depreciation. So, for a 500-mile round trip, you can expect to spend about $352, which comes out to only $88 per person. However, fuel costs can vary, depending on gas prices and distance.
Flying can be more cost-efficient for solo travelers, but it tends to be the most expensive option during peak holiday travel times. In 2024, the average domestic ticket cost $830, while international flights averaged $1,630. And don't forget about add-ons like checked bags, seat selection, and airport parking, which can add another $75 to $125 per traveler to your expenses. This means that a family of four could easily spend over $3,000 on airfare during the holiday season, particularly in the two weeks leading up to Christmas.
Train travel is often priced more reasonably, with fewer hidden fees, making it a better option for solo or city-to-city travel. For example, the Amtrak Northeast Corridor fare from Boston to Washington, D.C., ranged from $110 to $260, while longer routes like Chicago to Los Angeles cost anywhere from $200 to $1,150 for a round trip. While train pricing may increase closer to the departure date, it's typically more stable than airfare.
Ultimately, the best mode of transportation for holiday travel depends on your budget, distance, and flexibility. But the most crucial factor is planning as early as possible to avoid last-minute expenses and ensure a smooth trip. And if you're looking to make your journey even more stress-free, the Way app can help by reserving airport parking, locating EV chargers, and even providing gas cashbacks. Because after all, the cost of getting there shouldn't outweigh the joy of the trip itself.
[This article has been trending online recently and has been generated with AI. Your feed is customized.]
[Generative AI is experimental.]
