Americans are breaking records with an average spend of $7,250 on travel in 2026, and a striking number of people plan to borrow money to pay for their trips this year. Despite the high cost of everyday goods and services, travelers are spending more than ever before.
Record Travel Spending
The average trip cost in the first three months of the year exceeded $7,250, according to an analysis by travel insurance marketplace Squaremouth. This marks a 3.6 percent year-on-year increase and is the highest average spend since the company began tracking 23 years ago. Single-trip costs are more than $1,250 higher than they were from 2017 to 2020. Driving up costs are preferences for bigger, more experience-driven trips such as safaris and expedition cruises, as well as luxury travel becoming mainstream.
Fuel Prices and Airfare
Fuel prices are also contributing to the record-breaking travel spend in 2026. The U.S.-Israeli war against Iran has caused oil prices to skyrocket to near all-time highs since the conflict started on February 28. North American jet fuel prices nearly doubled in the weeks that followed, according to the International Air Transport Association. This led United Airlines to raise its fares by 15 to 20 percent, CEO Scott Kirby told CBS News in March. With the busy summer season approaching, Americans will likely face higher airfares. Additionally, at least six carriers have increased their bag fees to compensate for higher fuel prices, with Delta and Southwest raising their bag fees by $10 since the start of the war.
Consumer Behavior
Despite rising costs, many Americans are not focused on getting the cheapest airline fares or hotel rooms. Some 42 percent of Americans say they would skip a trip altogether instead of booking budget flights and lodging, Squaremouth reported. Consumers' hunger for travel seems counterintuitive amid high daily costs and rising inflation, but there is an explanation.
Borrowing for Travel
Some 60 percent of travelers plan to borrow money to pay for their adventures, according to a Nerdwallet survey published in March. Within that group, 23 percent plan to buy their travel with a credit card and not pay off the purchase right away. Another 13 percent say they will cover their travel costs with a cash advance, and 7 percent say they will pay with a payday loan. This decision could end up costing the traveler in the long run. Some 35 percent of travelers who paid for their 2025 trips with a credit card said they still carry a balance from it.
