Airline tickets will cost nearly 20% more this year, with the average domestic round-trip ticket estimated to be $274, according to travel site Hopper.
"Flight prices are at an all-time high. We haven't seen flights this expensive in five years. So if you haven't booked your holiday flights, now is the time to do it," travel expert Sandra McLemore told NewsNation Tuesday.
"I do think that we're not going to see any relief for 2022, and perhaps into 2023. So it's no surprise that travelers are looking for alternative ways to spend their holidays and to travel."
Cruises are a great option, she added.
"It's not a surprise that all-inclusive travel styles, like cruising, like all-inclusive resorts, are really a great option for the holiday season," she said. "That's fully inclusive of where they're going to sleep, entertainment, food and, in some cases, there are some great deals like Wi-Fi and drink packages as well."
The airline industry, which is facing higher fuel and wage bills, has been relying on robust demand to mitigate inflationary pressure with higher fares.
Airline fares were up 33% year-on-year in August and have been one of the biggest contributors to a jump in U.S. consumer prices.
With the Federal Reserve aggressively raising interest rates to tame inflation by lowering demand and slowing economic growth, the industry's pricing power is under threat.
Information from Reuters was used in this report.
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