It May Cost Less to Fill Up Over the Holidays, But Don't Expect Discounts on Other Travel

Holiday travel spending is expected to soar to $83 billion this year.

learn more about Gabrielle Karol

By Gabrielle Karol

Shutterstock

This story originally appeared on FOX BUSINESS

It may cost less to fill up your tank this holiday season, but when it comes to the other aspects of traveling don't expect any discounts.

According to a recent survey from discount travel-booking site Hotwire, Americans will spend $83 billion on holiday travel this year – up $11 billion from 2013. Christmas alone will cost travelers a whopping $66 billion.

"The headline message is bad news," Hotwire CEO Henrik Kjellberg said. "Even if we look at Hotwire in terms of our prices, what we're seeing is prices are up 15% on hotels and they're still up 5% on air [for Thanksgiving]."

The one bright spot is car rentals, where Thanksgiving rentals are down approximately 2% this year. For Christmas, however, prices are set to jump even higher: Hotel prices are 22% more expensive than last year, while airfare is 6% costlier.

"If you're looking for deals, you have to work harder," Kjellberg said. While fuel costs may be down, trade group Airlines for America said recently that most airlines would be reinvesting any savings or paying down debts, rather than dropping ticket prices.

What to Do If You Haven't Already Booked Travel

If you haven't yet booked flights or hotel stays for Thanksgiving or Christmas, there may still be some opportunity to save some cash.

"At this point, I would wait until next week [to book]," Kjellberg advised. While he acknowledges that this is a riskier strategy, he said Hotwire and other travel sites are likely holding prices steady this week. By next Tuesday, they'll be looking to fill open seats and rooms by dropping prices.

As for Christmas travel, Kjellberg said many sites are likely to offer Cyber Monday promotions. So if you're willing to live with a bit of uncertainty and wait until after Thanksgiving to firm up travel plans, there may be some discounts in store.

That said, Kjellberg said it generally pays off to plan in advance. If you can't afford major travel this holiday season, think ahead for 2015.

"Book your air tickets ahead, since those tend to be quite expensive, but book refundable hotels with [24-hour] cancellation policies to lock in prices … then you can look online 2-3 days before [for cheaper prices]," Kjellberg said.

Gabrielle Karol

Gabrielle Karol is Web reporter @FOXBusiness covering technology, startups and more.

Related Topics

Editor's Pick

This 61-Year-Old Grandma Who Made $35,000 in the Medical Field Now Earns 7 Figures in Retirement
A 'Quiet Promotion' Will Cost You a Lot — Use This Expert's 4-Step Strategy to Avoid It
3 Red Flags on Your LinkedIn Profile That Scare Clients Away
'Everyone Is Freaking Out.' What's Going On With Silicon Valley Bank? Federal Government Takes Control.
Leadership

How to Detect a Liar in Seconds Using Nonverbal Communication

There are many ways to understand if someone is not honest with you. The following signs do not even require words and are all nonverbal queues.

Business News

What Does the Banking Crisis Mean for Startups and Small Business Owners?

Author, CPA and business owner Gene Marks break down everything entrepreneurs need to know about the impact of the SVB collapse.

Business News

Carnival Cruise Wants Passengers to Have Fun in the Sun — But Do This, and You'll Get Burned With a New $500 Fee

The cruise line's updated contract follows a spate of unruly guest behavior across the tourism industry.

Business News

New Mexico Is Hiring Professional Bear Huggers -- Here's How to Land the Dream Job

The American Black Bear was selected as the state's official animal on February 8, 1963, by the New Mexico Legislature.

Starting a Business

Selling Your Business? Do These 6 Things Right Now.

If you want the maximum price you need to make these moves before you do anything else.

Business News

'Invest In That Future Now Before It's Too Late': Bill Gates Calls For Global Pandemic Response Team In Op-Ed

In the same month that the World Health Organization called the coronavirus a pandemic three years ago, billionaire Bill Gates reiterated his call for a "fire department for pandemics."