Hot summer fun.
From backpackers to beach lovers to globetrotters, nearly half of adult travelers expect to travel more this summer than last, according to a recent survey.
“Travel demand is not declining,” Paula Twidale, senior vice president at AAA Travel, told Yahoo Finance. “It will be busy all summer.”
Demand for holidays to Europe in particular has soared, making cities crowded and hotel rooms expensive: Prices for summer trips to Amsterdam, Barcelona, Berlin, Dublin, London, Paris and Stockholm have risen by around 10%.
“There are good deals available if you have flexibility in your travel dates and can book as early as possible,” Hayley Berg, chief economist at travel booking app Hopper, told Yahoo Finance. “If you haven't booked your summer plans yet, you should do so as soon as possible. Now is the perfect time to grab some great deals.”
Read more: Best travel credit cards
Independence Day Travel Log
AAA predicts that 70.9 million Americans will take to the road during the week of July 4 alone, a 5% increase from last year. The majority of holidaymakers will drive to their destinations. If you're one of those people, we have good news for you: Gas prices are lower than they were last year, when the national average was $3.58. The average price of gas in the U.S. today is $3.45 per gallon.
According to the AAA report, gasoline prices are expected to continue to fall as the Fourth of July approaches and then remain relatively stable through Labor Day. One potential disruptive factor is hurricane season, which could cause prices to plummet if storms hit oil production and refining centers on the Gulf Coast.
AAA predicts that 70.9 million Americans will hit the road during the week of July 4 alone, up 5% from last year. (Getty Creative) (Sarayut Taneelat via Getty Images)
According to AAA, a record 5.7 million Americans will jet off over the July holiday, and fares are cheaper than last summer: Domestic airfares for the Fourth of July weekend are down 18% from last year, averaging $263 per ticket, according to a new report from Hopper.
“Next to having a backyard barbecue, flying becomes the Fourth of July's national pastime,” Expedia travel expert Melanie Fish told Yahoo Finance. The Saturday before the holiday marks the start of the busiest air travel week of the summer.
But that's just the beginning: More than 57,000 flights will take off from U.S. airports this summer, carrying an estimated 13 million American travelers to destinations across Europe.
Read more: Best airline credit cards
Paris is one of the most popular international destinations, mainly due to the Paris Olympics in July. But Japan is the most popular destination year-round, according to Expedia research. Tokyo, Osaka and Kyoto are the fastest-growing cities for summer travel. “Africa is Kayak's most popular region,” says Jake Bouvree, vice president of data science and chief economist.
The story continues
“The most popular destinations are domestic cities like New York and Las Vegas, but we're also seeing double-digit increases in Amsterdam and Tokyo,” Fish said.
When we asked several travel industry insiders about the best ways to save money on summer travel, the mood was decidedly upbeat.
They all noted they expect a surge in Americans traveling over the next two months and agreed that airfares to many destinations will likely be cheaper than they were a year ago.
8 Expert Tips for a Smooth Travel This Summer
1. Be flexible
If you're keen to travel for Independence Day, Berg said you can find the best last-minute deals by booking a trip leaving on Thursday, July 4, and returning the following Tuesday.
“This means travelers will save an average of 32 percent, or about $121, per ticket compared to the more popular Wednesday to Sunday travel,” she said.
Let's be honest here: if you haven't made plans for Independence Day yet, take a break. Holidays like Independence Day and Labor Day are typically the most expensive days of the summer.
“Flexible travelers can save 15% on hotel nightly rates this summer, for example, by staying during lower rate weeks and weekends,” Berg says. “Currently, mid-August is the best time for flexible travelers.”
It's also a great time to save on international airfares.
2. European Sale
According to Hopper data, many airfares from the US to Europe are down 37% in July and August 2023. Fares to Canada and the Caribbean are under $500 round trip, while trips to Europe average around $900 round trip, Berg said. Hopper's most-booked destinations include London, Paris, Rome, Dublin and Barcelona.
Paris is one of the most popular international travel destinations, mainly due to the Olympic Games taking place in July. (Getty Creative) (Matteo Colombo via Getty Images)
That being said, if you decide to travel to Europe in September or early October, you can save even more, with round-trip airfares slashed by about 23%, or roughly $195.
3. Avoid crowds
The most affordable plans are found outside of Europe's major cities.
“Explore off the beaten path,” Wendy Marley, a travel advisor for AAA, told Yahoo Finance. “You'll find fantastic values in destinations like Madeira and the Azores, which not only offer a great European cultural experience but also lush tropical getaway spots.”
4. Pay attention to your reservation time
Domestic travelers should generally book two to three months in advance to get the best prices and availability, while for international travelers, Berg recommends booking three to five months in advance.
The worst time to book an airline ticket is less than a week in advance for domestic travel and more than 90 days in advance for international travel. During these periods, travelers pay 15% more than average, according to data from Expedia.
The standard advice for flyers remains the same: “Travelers who fly in the middle of the week, i.e. on a Tuesday or Wednesday, can save an average of 18% or $51 per domestic ticket,” Berg said.
The worst time to book an airline ticket is less than a week in advance for domestic travel and more than 90 days in advance for international travel. During these times, travelers pay 15% more than average, according to data from Expedia. (Getty Creative) (izusek via Getty Images)
5. Shop off-season sales
Fares are significantly cheaper in the fall off-season, especially in September for destinations in Europe. Berg says you can save almost a third by traveling in September compared to peak summer prices.
6. Always check for the cheapest fares
If you know where you're flying from, set up an airfare tracker and you'll be notified when fares drop. Major travel apps like Hopper, Kayak, and Skyscanner offer fare tracking, as does Google Flights.
Search Kayak's “Best time to travel” tool to get an idea of when you'll get the best deal. For example, when I entered 7 days from Washington DC to Geneva, it suggested traveling in October.
“We recommend visiting Geneva in October, as airfare is affordable ($617), temperatures are cool at 51°F, and there are fewer tourists and fewer crowds than usual,” the site says.
7. Use loyalty points
“Take advantage of all your rewards points: frequent flyer miles, hotel loyalty, credit card points, etc.,” Marley said.
For example, if you're traveling abroad, a rewards card with no foreign transaction fees is a must, and when you make purchases, ask to be charged in the local currency at the best exchange rate.
Read more: Best rewards credit cards
Get ready for a weaker dollar overseas. (Getty Creative) (Nathan Below via Getty Images)
8. Prepare for a slight weakening of the dollar overseas.
As of June 22, the dollar was worth about 93 cents to the euro, down from 0.95 euros in October of last year, according to currency conversion specialist Wise. For those traveling to London or the UK, the dollar was worth 79 pence, down from about 83 pence in October.
Admission fees for attractions like the Eiffel Tower are soaring. This month, an adult ticket to the top of the tower will cost about $38, up 20 percent from last summer.
That's life.
Kelly Hannon is a senior columnist for Yahoo Finance. She's an expert on career and retirement strategy and the author of 14 books, including “In Control at 50+: How to Succeed in The New World of Work” and “Never Too Old to Get Rich.” Follow her at X. Kelly Hannon.
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