5 Ways Inflation Is Making International Travel Cheaper This Year
Written by
Jordan Rosenfeld
Edited by
Molly Sullivan
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If you’ve been dreaming of an international getaway but held off due to high costs, 2025 might be the year to book that trip.
While inflation has driven up prices on many everyday expenses, it’s also creating unexpected opportunities for budget-conscious travelers. From favorable exchange rates to airline fare adjustments, certain factors are making international travel more affordable than you might expect.
Here are five ways inflation is actually working in your favor — and how you can take advantage of lower travel costs this year.
Rising Costs Are Changing People’s Travel Plans
In a recent RVshare renter survey, nearly 70% said that rising travel costs impact their decision to travel this spring or summer, according to Maddi Bourgerie, travel expert at RVshare.
“For those Americans who are planning to travel abroad, there are a few factors that could be driving down the cost of international travel, including increased airline capacity and competitive pricing following pent-up supply post-pandemic,” she pointed out.
International Destinations May Seem Cheaper in Contrast
A lot of travelers are simply shifting to more budget-friendly destinations, according to Steve Schwab, CEO of Casago. But another way that inflation works in the traveler’s favor, he said, is that “traveling simply feels a lot less expensive because inflation here in the U.S. is not reflected equally in other places around the world, so their dollar does carry more weight.”
While the dollar can fluctuate, by locking in international travel now, and even ordering foreign currency early through your bank, you may be able to take advantage of better exchange rates.
Inflation May Be High but the Dollar Is Still Strong
A strong U.S. dollar can allow travelers to have more purchasing power and stretch their dollars further in other countries with weaker currencies, making accommodations, dining and activities more affordable for Americans abroad, Bourgerie said.
However, she urged travelers “to always do your research ahead of traveling abroad to stay up to date on the latest exchange rates.”
Airlines May Be Motivated To Lower Prices
Additionally, Bourgerie said that some airlines are adding capacity and keeping international fares fairly flat compared to years past, as a result of inflation, though “hotels are seeing mixed trends.”
While some hotels may lower rates in off-peak seasons or for newly launched properties, she noted that travelers are opting for budget-friendly spots, domestically and abroad.
Booking Travel in Advance Can Save You Money
Regardless, Bourgerie said it’s a good idea to plan as far in advance as you can, booking between six and nine months early or as soon as flights become available, taking advantage of miles and points.
“Look into alternative travel accommodations for your travels … and research free and inexpensive activities to take advantage of,” she said.
She recommended researching and targeting destinations that have “weaker currencies where you can get more bang for your buck,” while also exploring somewhere new and on your bucket list.
While travel is still pricey in the best of economic times, going abroad may bring relief as you stretch your travel budget further.
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