Americans are spending more on travel than ever before, with the average trip cost in the first quarter of 2026 reaching $7,257, according to travel insurance marketplace Squaremouth. This marks a 3.6% year-on-year increase and the highest average spend since the company began tracking 23 years ago. Single-trip costs are now over $1,250 higher than the 2017-2020 average.
The rise is driven by a preference for 'bigger, more experience-driven trips' such as safaris and expedition cruises, as well as the mainstreaming of luxury travel. Fuel prices are also a significant factor. The US-Israeli war against Iran, which began on February 28, has caused oil prices to soar to near all-time highs. North American jet fuel prices nearly doubled in the weeks following the conflict, leading United Airlines to raise fares by 15-20%, according to CEO Scott Kirby.
At least six carriers have increased bag fees to offset higher fuel costs, with Delta and Southwest raising fees by $10 since the war started. Despite rising costs, 42% of Americans say they would skip a trip rather than book budget flights or accommodation, Squaremouth reported.
However, many are borrowing to fund their travel. A Nerdwallet survey published in March found that 60% of travelers plan to borrow money for their trips. Of those, 23% intend to use credit cards without paying off the balance immediately, 13% plan cash advances, and 7% will use payday loans. This could lead to long-term debt, as 35% of travelers who paid for 2025 trips with a credit card still carry a balance.
