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Sh*t Costs Too Much: Travel & Vacations

Airfares have soared 26.5% and a summer trip costs hundreds more than last year, as the war with Iran sends fuel prices soaring and wipes out low-cost airfare.

Fact sheet · July 2026
Fact Sheet

Sh*t Costs Too Much.

Fact sheet · July 2026

The topline

26.5%

How much airfares have soared over the past year

$4,069

What families still traveling expect to spend on their longest trip — up 17%

45%

Of Americans taking a summer vacation with paid lodging — a six-year low

Americans are paying more for everything these days — even when trying to get away from it all. Family vacations are supposed to be the reward for a year of hard work; this year, they’re a luxury. Road trips are being foiled by gas prices surging past $4 a gallon thanks to the war in Iran, airfares are climbing at the fastest pace of any major expense, hotel stays are climbing faster than wages, and restaurant meals are up more than groceries. Fewer Americans are taking vacations than at any point in six years, and for those who still go, the trip costs hundreds more than it did last summer.

Key points

  • A 1,000-mile road trip this year costs about $50 more in gas than it did a year ago. Analysts expect next month to bring the most expensive August at the pump ever recorded.
  • Airfares have soared 26.5% over the past year, after eight straight months of fare hikes. Experts say prices are not coming down.
  • Hotel rates are up 4.8%, while restaurant meals have risen faster than groceries over the past year. Eating out now costs more than 50% more than it did a decade ago.
  • Just 45% of Americans are taking a summer vacation with paid lodging, a six-year low. 44% say summer travel is simply out of reach.
  • Families still traveling expect to spend $4,069 on their longest summer trip, up 17% from last year.
  • Overseas summer bookings have plunged 25% as families downgrade international trips or scrap them altogether.

Core drivers

The war with Iran is sending fuel costs soaring for road trippers and flyers alike

The war with Iran has shut down the Strait of Hormuz, sending fuel prices through the roof. Gas and diesel both increased 60% on average between January and May, and gas prices are expected to remain high for the rest of the summer. As a result, every road trip, cruise, and rental car is costing more this summer. Meanwhile, flyers are getting hit just as hard as jet fuel prices skyrocket and airlines pass costs to passengers through higher fares and steeper baggage fees.

War with Iran killed Spirit Airlines, locking in higher airfares for years to come

In May, war-driven fuel prices forced Spirit Airlines out of business, erasing the biggest source of cheap airfares overnight. Without low-cost competition, airlines are openly cutting seats and hiking prices.

Every figure here is sourced and linked to public reporting, government data, and independent analysis.

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