The Fare Is Just the Start
Here's a counterintuitive truth: average domestic airfares have actually dipped slightly over the past year, down about 1-2% as airlines expanded capacity. But travel doesn't feel cheaper, and the total cost of a trip has actually increased. The reason is everything around the flight.
Hotel rates are up 12-15% from 2019 in popular destinations. Resort fees, once $25-30/night, now commonly hit $45-65. Rental cars, while down from their pandemic peak, still cost 20% more than pre-COVID. And dining at your destination is subject to the same restaurant inflation everyone is experiencing at home — except tourist-area restaurants charge even more.
The Fee Economy
Airlines have become masters of fee extraction. A $200 base fare easily becomes $350+ once you add a carry-on bag ($35-45), seat selection ($15-40), priority boarding ($20-30), and food. Spirit and Frontier pioneered this model, but legacy carriers have enthusiastically adopted it. United's basic economy fare now excludes overhead bin access. The 'true' fare comparison requires adding fees that vary by airline and route.
For budget travelers, the playbook is evolving: use fare trackers and flexible date searching, consider shoulder season travel, book accommodations with kitchens to avoid restaurant costs, and weigh all-in costs rather than headline fares. Travel is achievable, but the days of casually cheap trips are fading.