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Americans are trading passports for road maps

Tuesday, May 12

Image: Kayak

This year, more Americans are forgoing the customs line and instead preparing to load into a SUV and argue over the aux cord for eight straight hours.

A growing number of Americans are rethinking overseas vacations as flight prices continue to climb, and choosing to travel domestically instead.

By the numbers: Since the Iran war began in late February, international airfare prices have climbed by ~38%, according to travel site Kayak. The average flight now costs ~$150 more compared to the same time last year.

  • Europe has been hit especially hard by fuel shortages, leading airlines to reduce flight offerings altogether.
  • Lufthansa alone has canceled 20,000 flights through October, while United says it’s “tactically pruning” less popular routes and flight times.

It’s sparked a change of plans

In response, many Americans are either choosing closer and cheaper destinations, or not planning a trip at all.

  • Arlene Hogan, owner of travel adviser company Vacays4U, told Axios that her bookings have dropped ~10% for the fall (most summer trips are booked well in advance).
  • She also said other travel agency owners at a recent gathering told her they’ve noticed similar declines.

There are some bright spots: Travel advisors report Hawaii, national parks, beach towns, and domestic cities are seeing increased interest as travelers look for destinations that feel cheaper, safer, and easier to reach.

Looking ahead: Analysts say airline tickets may not return to their pre-Iran war prices anytime soon, even if the conflict is resolved in a timely manner, with airline executives indicating they plan to focus on higher profit margins after years of razor-thin earnings and volatile fuel costs.

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