Travel prices in 2026 diverge: higher for luxury, softer for budget travelers

Travel prices in 2026 are diverging, with luxury travelers generally paying more while budget travelers may see lower or steady costs, economists say. Economists are citing a K-shaped economy to explain how tourism can be down even as some prices rise. Those with means are spending on premium airfares, specialty cruises and luxury resorts, driving prices up, while people hurt by inflation and uncertainty are cutting back on discretionary travel, which pushes some prices down or keeps them in check.

Walt Disney World, which raised most of its prices in October, kept its lowest-priced ticket unchanged, according to NerdWallet. "We're seeing top-tier brands discounting lower-demand days," said Sally French, a travel expert at NerdWallet. "These brands don't want to offer lower prices outright because they don't want to cheapen their aura, but they're doing things to offer opportunities to save." On flights, domestic airfares were down more than 3 percent in 2025, according to the U.S.

Travel Association's December travel price index, which said the average domestic ticket in December was nearly $266 compared to nearly $275 the year before. The figures do not take into account the unbundling of services like checked bags — a practice even Southwest Airlines adopted last year — and seat reservations.

Key Topics

Business, Travel Prices, K-shaped Economy, Walt Disney World, World Cup, U.s. Travel Association