Will you pay more to travel in 2023?

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Travel has become expensive. Could things get any worse?

Main points

• High demand leads to high travel costs in 2022.
• If demand remains strong, consumers may spend more to travel in 2023.

When the Covid-19 crisis erupted in early 2020, it forced many people to put travel plans on hold for long periods of time. Travel was then launched in 2021, but some of these plans failed due to the creation of a delta variant and widespread lack of vaccine availability.

But this year, COVID has become less of a factor in people’s decisions to travel. And with so many previous restrictions lifted, consumers are less hesitant to make plans.

That increase in demand, however, has driven up travel costs in recent months. And if demand is strong, consumers could pay more to travel by 2023.

Travel costs may continue to rise.

Recent estimates from travel management company CWT and the Global Business Travel Association show that the cost of corporate travel will rise by 2023. If companies see higher prices, so do regular travelers.

A big reason why travel costs are so high right now is that demand is strong at a time when the airline and hospitality industries are experiencing labor shortages. Throw in rising fuel costs and general inflation, and it’s no wonder so many people are racking up huge credit card tabs in the process of traveling.

Recent estimates suggest that air fares will rise by more than 8% by 2023. And while this may not seem like an incredibly large increase, given the cost of travel, it could put many people in a difficult spot next year.

How to save on travel in 2023

If you have big travel plans in 2023 or are someone who tends to travel a lot, it’s important to do what you can to keep your expenses to a minimum. The last thing you want is for your plans or habits to lead you into dangerous debt.

One good bet is to research airfares and hotel prices in advance and book strategically. Hotels in particular have flexible cancellation policies, so reserving a room before your trip may work to your advantage.

Another good bet is to find yourself a Travel Rewards Credit CardEspecially if you plan to travel by air a lot. Most of these cards come with money-saving benefits like free checked bags and discounts on in-flight purchases. And since the days of free meals on domestic flights are long behind us, that’s a valuable perk.

If you think you’ll be taking a lot of road trips at the same time, look for a credit card that rewards you generously for gas fill-ups. Better yet, find travel buddies to split the cost — not to mention the driving.

As expensive as it will be to travel in 2022, consumers will likely pay more to get out and explore in 2023. It’s best to prepare for that possibility by hiding your travel budget, planning strategically, and getting the right credit cards.