Travel costs in the United States continued to trend below last year’s levels in July, even as airfares saw their first monthly increase of 2025. According to the latest U.S. Travel Price Index (TPI), travel prices fell 0.1% from June and were 0.5% lower than July 2024, marking the sixth consecutive month of year-over-year declines.

The TPI, based on U.S. Department of Labor data from the Consumer Price Index (CPI), tracks travel-related expenses including transportation, lodging, fuel, recreation, and dining. While the overall CPI grew at an annual rate of 2.7% in July, the TPI continues to undercut that pace.

Air Travel Sees First Uptick in 2025

Airfares rose 4% in July, breaking a streak of monthly declines that began in January. Despite this bump, prices remain just 0.7% higher than last year and are still below pre-pandemic levels from 2019.

Hotels and Gas Prices Keep Falling

Hotel rates dropped for the fifth month in a row, down 1.3% from June and 4.8% lower compared to July 2024. Gasoline prices also slid 2% for the month and are now 9.3% below last summer’s levels, having declined in five of the past six months.

Recreation and Dining Buck the Trend

Not all travel expenses fell. Recreation prices increased 0.8%, while food and beverage away from home rose 0.3%—both outpacing overall inflation. Over the long term, these two categories remain the only travel-related expenses with price growth exceeding the broader economy.

Takeaway for Travelers

For leisure travelers, the July data offers a mixed picture: lower hotel and fuel prices may help offset slightly higher airfare, while activities and dining continue to inch upward. With travel costs still trending below last year’s figures, 2025 may remain an appealing year for domestic trips—especially for those who plan strategically.