Holiday airfare is down, but Americans are planning to spend more than ever on holiday travel.
A September 2024 report by online travel agency Kayak shows domestic holiday airfare is at its lowest level in three years. Compared to last year, Christmas and New Yearβs flight prices are down 9%, while Thanksgiving flight prices are down 6%.
Consumers feeling the pinch from inflation and dwindling personal savings rates may rejoice. However, lower airfare doesnβt mean people are spending less on travel.
An October 2024 survey by NerdWallet found that nearly half of American adults plan to spend money on flights and hotel stays during the 2024 holiday season (between Nov. 21, 2024 and Jan. 8, 2025). These holiday travelers plan to spend $2,330, on average, on these expenses β nearly a 20% increase over 2023βs average of $1,947.
Thatβs a big jump in holiday travel spending. So where are those extra dollars going?
Higher hotel prices
Holiday hotel prices are up 4% compared to 2023 β $353 per night vs. $338 per night in 2023 β according to data from Kayak. For shorter hotel stays, that small price increase may not make a huge dent in someoneβs budget. But during the holidays, when people might be planning longer stays and multi-day celebrations, those differences can add up.
Better seats, fancier hotels
The average holiday flight price may be down slightly this year, but keep in mind those statistics donβt include upcharges like seat selection and checked baggage. These pricing tactics combined with a consumer willingness to pay for comfort and convenience might be driving up overall travel spending.
According to an October 2024 survey from Deloitte, compared to last year, an additional 20% of holiday flyers intend to spend more on upgraded seats and an additional 8% intend to pay for a more convenient itinerary, while an additional 10% of hotel patrons are willing to pay for upper-class lodging.
More demand for popular destinations
Holiday travelers β and travelers in general β are focusing on destinations that are both more crowded and more expensive than in years past. In turn, that demand drives up prices and holiday travel spending.
βUnlike the pandemic where travelers chose less crowded destinations, those who are traveling are going back to more popular and expensive cities β and theyβre willing to pay a premium,β said Noreen Henry, chief revenue officer at Sojern, a travel-based digital marketing firm, in an October 2024 report.
According to Sojern, the top destinations for holiday travelers within the United States for 2024 include Orlando, Honolulu and New York City. Internationally, the top destinations include Mexico, the United Kingdom, Canada and the Dominican Republic.
4 ways to save money on holiday travel
If consumers are just rolling savings on airfare into a more lavish travel experience in more expensive destinations, how else can they save money on holiday travel in 2024? Here are four ways.
1. Book holiday travel soon. According to a 2024 study by Google Flights, the best booking window for low-cost flights around Thanksgiving is between 26 and 59 days before departure. For Christmas, itβs between 36 and 72 days in advance. That makes October the prime month to book your holiday flights before prices start to rise.
2. Use your stash of airline miles, hotel points or credit card rewards. Itβs okay to not get an optimal redemption value for your points if it means putting cash back in your pocket during an expensive time of the year, such as the holidays. The least valuable mile or point is the one you donβt use.
3. Fly on low-demand days. You will also find better deals (both with cash and points) if you avoid traveling on the most popular days, such as the Wednesday before or the Sunday after Thanksgiving and the few days prior to Christmas Eve. In general, the cheapest travel days will be the day of the holiday, such as the Thursday of Thanksgiving or on Christmas Day.
4. Opt-in to take a different flight. If your plans are flexible, busy periods like the holidays can be a perfect time to volunteer to get bumped on an oversold flight. If you move to a later flight, youβll usually get rewarded with a flight voucher and other compensation. You might even ask for a free upgrade to premium economy or first class as a sweetener.
10 US airports where domestic airfare increased most this year
10 US airports where domestic airfare increased most this year
Updated
The national average for domestic airfare in early 2024 was $388, up slightly from $381 one year earlierβan increase that didn't even keep pace with inflation. Many major airports also saw domestic airfare prices cool, leaving more room in the budget for some travelers. But depending on their location, others may have to reconsider their budgets for the upcoming travel season, as certain major airports continued to see price hikes as high as 10%.
With this in mind, SmartAsset ranked the 74 largest U.S. airports by passenger volume based on the percent change in domestic fares between Q1 2024 and Q1 2023.
Key Findings
- Airfare increased by 10% year over year at this California airport. Metro Oakland International Airport in Oakland, CA saw domestic airfare increase to $304 in 2024, from $276 one year prior. Meanwhile, flights out of San Francisco International increased by half as much at 5% (13th largest increase studywide), but are more expensive at an average of $444.
- Flights out of Florida got up to 9% cheaper. Southwest Florida International Airport saw the biggest price decrease at 8.9% from $369 last year to $336 in 2024. Also in the top five biggest decreases were Fort Lauderdale-Hollywood International Airport (-6%), Palm Beach International Airport (-5.5%) and Miami International (-4.9%). Overall, domestic airfare at 20 major airports got cheaper this year.
- Newark Liberty International airfare increased more than 30% over two years. Ranking sixth overall this year with an 8% increase in fares to $433, EWR saw the largest two-year increase studywide. Airfare was $331 out of Newark in Q1 2022. Meanwhile, neighboring John F. Kennedy International Airport saw the third-largest two-year increase at 27%. But JFK ranked 16th overall this year with a modest 4.7% increase.
- Flights are the most expensive out of these three airports. Getting out of Ted Stevens Anchorage International in Alaska will cost you an average of $544 in 2024. ANC ranked eighth with a 6.8% one-year increase. Washington Dulles International in Washington, D.C. has an average fare of $496 after a 1.7% increase. Third-most expensive are flights out of Detroit Metro Wayne County in Michigan, with a 1.9% increase culminating in a $456 average fare.
Airports With the 10 Highest Increases in Domestic Airfare
Updated
Major airports are ranked by the percent increase in domestic airfare between 2023 and 2024.
- OAK: Metro Oakland International (Oakland, CA)
- One-year airfare change: 10.04%
- Average domestic airfare (2024): $303.55
- Average domestic airfare (2023): $275.86
- Average domestic airfare (2022): $261.97
- Two-year airfare change: 15.87%
- Number of passengers in 2023: 268,118
- BOI: Boise Air Terminal (Boise, ID)
- One-year airfare change: 9.55%
- Average domestic airfare (2024): $420.94
- Average domestic airfare (2023): $384.24
- Average domestic airfare (2022): $358.01
- Two-year airfare change: 17.58%
- Number of passengers in 2023: 127,913
- SNA: John Wayne Airport-Orange County (Santa Ana, CA)
- One-year airfare change: 8.36%
- Average domestic airfare (2024): $408.31
- Average domestic airfare (2023): $376.81
- Average domestic airfare (2022): $326.68
- Two-year airfare change: 24.99%
- Number of passengers in 2023: 268,194
- LAS: Harry Reid International (Las Vegas, NV)
- One-year airfare change: 8.20%
- Average domestic airfare (2024): $292.04
- Average domestic airfare (2023): $269.92
- Average domestic airfare (2022): $239.77
- Two-year airfare change: 21.80%
- Number of passengers in 2023: 672,945
- BUR: Bob Hope (Burbank, CA)
- One-year airfare change: 8.12%
- Average domestic airfare (2024): $308.72
- Average domestic airfare (2023): $285.53
- Average domestic airfare (2022): $242.03
- Two-year airfare change: 27.55%
- Number of passengers in 2023: 166,485
- EWR: Newark Liberty International (Newark, NJ)
- One-year airfare change: 8.04%
- Average domestic airfare (2024): $432.68
- Average domestic airfare (2023): $400.49
- Average domestic airfare (2022): $331.40
- Two-year airfare change: 30.56%
- Number of passengers in 2023: 930,056
- SJC: Norman Y. Mineta San Jose International (San Jose, CA)
- One-year airfare change: 7.61%
- Average domestic airfare (2024): $330.02
- Average domestic airfare (2023): $306.68
- Average domestic airfare (2022): $286.29
- Two-year airfare change: 15.27%
- Number of passengers in 2023: 293,529
- ANC: Ted Stevens Anchorage International (Anchorage, AK)
- One-year airfare change: 6.82%
- Average domestic airfare (2024): $543.54
- Average domestic airfare (2023): $508.85
- Average domestic airfare (2022): $455.92
- Two-year airfare change: 19.22%
- Number of passengers in 2023: 110,792
- HNL: Daniel K. Inouye International (Honolulu, HI)
- One-year airfare change: 6.78%
- Average domestic airfare (2024): $350.71
- Average domestic airfare (2023): $328.43
- Average domestic airfare (2022): $309.68
- Two-year airfare change: 13.25%
- Number of passengers in 2023: 343,489
- AUS: Austin - Bergstrom International (Austin, TX)
- One-year airfare change: 6.17%
- Average domestic airfare (2024): $387.58
- Average domestic airfare (2023): $365.06
- Average domestic airfare (2022): $317.41
- Two-year airfare change: 22.11%
- Number of passengers in 2023: 468,640
Data and Methodology
SmartAsset reviewed data forΒ 74 U.S. airports that served 100,000 or more passengers in 2023. Airports were ranked based on the percent change in the average domestic airfare price between Q1 2024 and Q1 2023, from the most recent data available from the Bureau of Transportation Statistics. The two-year airfare changes were also found by comparing prices from Q1 2022.
This story was produced by SmartAsset and reviewed and distributed by Stacker Media.
