With rising prices and economic uncertainty, annual vacations are becoming increasingly out of reach for many middle-class families, especially around the holidays and moving into the new year. As travel inflation continues to rise, these families are finding it harder to afford the trips they once enjoyed.
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While travel used to be a way to unwind and reconnect, today’s economic pressures are reshaping what a “realistic vacation” looks like for the average household and what expenses have become nearly impossible to justify. Here are four such “luxuries” the middle class can’t afford anymore.
Peak Season Flights
Airfare during school breaks and holidays has become prohibitively expensive for many families. According to travel blogger Hristina Nabosnyi of CheckinAway.com, flight prices have surged once again, especially in late summer and early fall. “We had time off in late August, early September, but the flight prices were through the roof,” Nabosnyi said.
Consider alternative transportation like buses and trains, book flights during off-peak or shoulder seasons, or use travel rewards and cashback programs to offset costs. For example, instead of paying for expensive flights, Nabosnyi and her family bought an Interrail pass and spent 16 days traveling across six European countries.
“We used a mix of points, early bookings and cash back to keep hotel costs down and it ended up being a great alternative,” Nabosnyi said.
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Pet-Friendly Travel
Zach Somers, CEO and founder of Romingo, an online platform for pet-friendly vacations, said while the average nightly rates decreased by 16% compared to last year, pet fees and resort fees have increased over twice the rate of inflation.
“This shift highlights that travelers are booking quick getaways instead of longer vacations,” Somers said. “Economic uncertainty and the rising cost of goods and services has decreased travel demand for Americans, especially in primary markets such as Los Angeles, New York, San Francisco, Chicago, Atlanta and other major travel destinations.”
Instead, more travelers are opting for road trips to destinations within a two- to ten-hour driving distance from their homes.
“On average, the American household takes five trips per year, which we forecast to increase as airline pricing continues to skyrocket and the number of flights operated continues to decrease.”
High Hotel Prices
Hotel rates in popular destinations have soared, making it difficult for families to stick to their travel budgets. Nabosnyi shared that her family had to skip visiting the Netherlands due to hotel prices exceeding $300 per night.
“After searching for alternatives and still not finding anything reasonable, we decided to skip the Netherlands entirely and spend more time in Belgium and Germany instead,” Nabosnyi said. “It’s frustrating, but sometimes you just have to adjust your plans. I’m sure many families are doing the same.”
Try using booking platforms that offer early bird discounts, loyalty rewards or bundle deals. Consider alternatives like hostels, vacation rentals or home exchanges. Doing a little research before you book can go a long way toward big savings.
Former Budget-Friendly Destinations
Once-affordable destinations like Costa Rica are now out of reach for many middle-class travelers, as sometimes, it’s not a single expense but an entire destination that has become pricier. For example, the average cost of a vacation for four there has jumped from $5,500 in 2022 to $7,800 moving into 2026.
“What we are observing in our stats is that the middle-class traveler to Costa Rica has all but vanished,” said Casey Halloran, CEO and co-founder of Costa Rican Vacations. “For a family of four, including flights, it’s difficult to vacation here for under $2,000.”
“We are also seeing a shift to shorter stays, sometimes as little as just four nights versus the more traditional seven-night stay,” Halloran added. “But what we hear from many who experience sticker shock at seeing one of our quotes is they simply elect to stay home.”
Caitlyn Moorhead contributed to the reporting for this article.
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This article originally appeared on GOBankingRates.com: 4 Vacation Expenses the Middle Class Can’t Afford Anymore
