Inflation and the price of your vacation: Where your dollar stretches more in 2025—and where it doesn’t
With most of the country stuck in deepest winter, the American consumer turns to thoughts of a nice, warm beach vacation. If you want a pina colada, not getting caught in the rain, I have good and bad news for you when it comes to vacation prices.
Inflation impacts the economy in vastly different ways—check out today’s CPI report for evidence of that reality—and travel is no exception. The bad news is that some attraction prices have never been higher, increasing at almost ten times the rate of inflation in certain cases. If your plans include Disney World, get ready to pay more than you thought.
But there are rays of sunlight out there that can help out your vacation planning. The strong U.S. Dollar buys more overseas, in some cases 25% more than it did a decade ago. And air travel, adjusted for inflation, has rarely been cheaper than it is now.
What’s cheaper: flights, tickets and the dollar
Most Americans believe that the purchasing power of their dollars is shrinking under the weight of inflation. But once you leave the country, the relative strength of the dollar overseas could be a boon for many travellers. Combine this with surprising trends in air travel prices, and international travel starts to look more affordable.
According to Scott Keyes, founder of Going.com, it’s almost 40% cheaper in today’s dollars to fly than it was at the turn of the century. Keyes has been obsessively tracking airfares for over a decade, and his data tells him that it’s a great time for airfare prices.
“Compared to everything else we buy, airfare today is near its all-time lows,” says Keyes. “As I like to put it, we're living in the Golden Age of Cheap Flights.”
View this interactive chart on Fortune.com
The dollar has gained value against many top global currencies, making international travel cheaper. A stronger dollar effectively puts trips to Britain, Mexico, and Japan, among others, “on sale” as your purchasing power is higher than a decade ago.
It’s not just local currencies that get cheaper when you leave the U.S. Consider concert tickets. Because scalping isn’t permitted in many countries abroad, concert tickets are easier to get at face value because there isn’t a way to legally jack up the prices.
This came to the fore during Taylor Swift’s recent Eras Tour. Last year, I flew to Madrid, stayed five nights at a four-star hotel, and saw the show with VIP tickets for less than $2,500. The average price of an Eras ticket in Miami was $2,660. If you’re eyeing pricey tickets for Beyonce’s upcoming Cowboy Carter world tour, you may want to grab your passport before pulling out your credit card.
What’s stayed the same: Hotel rates and regional theme parks
Compare hotel rates to 2021 and you’ll get a severe case of sticker shock. But if you take a broader view, the average hotel nightly rate has paced pretty close to inflation over the last decade. The revenge travel trend of 2022-2023 has mostly moderated into a new normal, and lodging prices have settled into a recognizable pattern.
View this interactive chart on Fortune.com
These rates reflect the national average, but averages are just that, and some individual markets have seen larger increases. For instance, American Express Travel reports that prices in Chicago and Paris increased over 10% year over year in 2024. But across the board, prices are remarkably stable.
Interestingly, Vrbo reports that the average vacation rental price for April 2025 is almost the same, right around $160 per night. It could be that the added inventory of vacation rentals is helping keep hotel rates in tourist destinations in check.
If your favorite theme park doesn’t feature a mouse, prices have stayed stable
Disney World swallows up all of the oxygen in the theme park world, but there are many other options that are both less expensive and fun for a family outing. Regional theme park prices in some cases have even gone down compared to a decade ago.
The other advantage of a smaller theme park is that you can often get annual passes for a nominal upcharge from a one day ticket. For instance, at Busch Gardens Williamsburg, there’s a $92 pass that gets you unlimited admission through August 2025.
View this interactive chart on Fortune.com
There’s even a $354 Platinum pass that gets you into 11 parks—Busch Gardens in Virginia and Florida; Water Country USA in Virginia; Adventure Island in Florida; Sesame Place in Pennsylvania and California; SeaWorld in Florida, Texas, and California; and Aquatica in Florida and Texas—for an entire year. You’d be lucky to get three days at Disney World for that price.
What’s more expensive: Disney World
When I hear families lament over vacation prices, I can usually point right to the source. That’s because Disney World prices have risen at 9X the rate of inflation over the last decade, meaning a single-day visit for a family can easily stretch into four digits.
View this interactive chart on Fortune.com
It’s not just concert tickets that benefit from overseas pricing. Consider Disneyland Paris or Tokyo Disneyland for your next trip instead of Orlando and you might actually save money because the theme park tickets are so much less expensive, even accounting for airfare.
The takeaway
It’s easy to see things have gotten more expensive at the grocery store, but the same is not necessarily true for travel. Over time, most vacation element prices have either remained stable or actually gotten less expensive.
While there are exceptions—I’m looking at you, Mickey—you should be able to enjoy your umbrella drink knowing that you’re not overpaying for the privilege.
This story was originally featured on Fortune.com
