- [announcer] If you've been itching for a vacation,
you're not alone.
Summer holiday travel has surged to levels not seen
since before the COVID 19 pandemic.
The consumer price index,
which is the benchmark measure of inflation
rose 0.9% in June.
The largest one month increase since 2008.
Vacation related expenses weren't spared.
Prices increased for everything
from new cameras and swimsuits
to rental cars and hotel rooms.
- We're just, have this kind of collective need
to get out and about.
- [announcer] Experts say price increases
reflect an economy on the upswing from pandemic lows.
But higher demand has made some vacation essentials
harder to come by.
Here's why that is, in some strategies
to help avoid the sticker shock.
As lockdowns have eased,
summer holiday travel has surged both in the air
and on the ground.
AAA says more than 47 million people traveled
over the 4th of July holiday weekend,
which is 40% more than last year.
But US Air travel is still recovering
after the pandemic drove it to a virtual standstill.
Much of the recovery lag has to do with the slow return
of business travel.
However, airlines prepared
for an almost normal schedule of flights this summer
as leisure travel demand returned.
Contributing to airfare increasing nearly 25%
since last year.
If you're looking for cheaper airfare,
"WSJ" Travel Editor, Deborah Dunn
suggest switching up when you fly.
- The key to finding less expensive airfare,
is to be really flexible.
Not just traveling on a weekend
or traveling from a Saturday to Sunday,
but I would look at the price difference
if you fly on a Tuesday or Wednesday.
- [announcer] But once you're all booked in
and touchdown at your destination,
you still may hit those higher prices.
Vehicle rental prices are up over 87% from a year ago.
The simple reason is that rental companies have less cars.
Smaller rental fleets had one big issue.
Summer demand surged over 300% in some cities,
according to KAYAK.
This has led some travelers being turned away
at the rental counter because there aren't enough cars
on the lot.
And with a semiconductor shortage,
continuing to hamper new car production,
some analysts think it will be well into 2022
before fleet supplies are enough to meet demand.
- Book months and months ahead.
And I wouldn't book a non-refundable reservation.
The other possibility is to look at picking up a car in town
rather than in the airport,
you'll have to take an Uber from the airport,
but it's still day to day, probably a better deal.
- [narrator] Those with their own set of wheels
could count themselves lucky
if they weren't facing the steepest gasoline prices
in nearly seven years
as gas shortages have plagued many regions.
The Colonial Pipeline cyber attack in May
led to East Coast shortages right before the summer season.
And some regions of the country have had a hard time
restocking gas stations because of a lack of truck drivers.
Many of whom had been laid off during the pandemic,
according to analysts.
And the high prices, aren't restricted to travel expenses.
Men's and women's swimwear prices were up
1.4 and 5.5% respectively,
which analysts attribute to pent-up vacation demand.
Demand outpacing supply
has hit other vacation essentials as well.
Like cameras, which have risen in price by almost 6%.
And depending on where your head hits the pillow,
you could be paying more for accommodations.
Room rates have recovered to pre pandemic levels.
But the slow return of business travel
has kept occupancy rates slightly lower
than before the pandemic according to analysts.
And while demand may be high in traditional destinations
like Florida and Hawaii,
experts say price increases are being driven
by vacationers booking bigger accommodations
that may be off the beaten path.
Travelers are opting for larger hotel suites
or entire rental houses
to accommodate families vacationing together.
And according to AirDNA,
which tracks short-term rental prices of Airbnb and Vrbo,
demand in small cities in rural locations has surged
over 51% since 2019.
The current vacation season is being defined
by an economy in recovery
and a population desperate for some RnR,
even if it puts a dent in their wallets.
- Be flexible about where you're gonna go,
when you're gonna go, how long you're gonna stay.
Flexibility, I think is the operative word this summer.
The last thing you wanna be is stressed out on vacation.
- But if prices continue to rise,
a stress-free vacation may be harder to come by.
(gentle music)