Business

For Business

Back to Zip Insights

How Much Does the Average Vacation Cost?

January 27, 2025

blog.images-1.png


Research shows that most Americans — a whopping 90% — are planning to travel in 2025. But with the average price of a vacation climbing, more and more people are looking for tips on how to plan a travel budget. We’ll break down the average vacation cost in key categories like transportation, food, entertainment, and lodging. We’ll also share practical tips for how to save money on vacation, and examine some travel spending trends across different generations.

Top vacation destinations and what they cost

Not sure where to explore next? Here are the 20 most popular vacation destinations for Americans abroad and at home, including the average vacation cost per person per week for each location.


Top 10 International Vacation Destinations


10. Barcelona, Spain — $1,200-$1,800 

9. Auckland, New Zealand — $1,500 

8. Florence, Italy — $1,375

7. Athens, Greece — $1,400 

6. Amsterdam, Netherlands — $1,200-$2,000

5. Rome, Italy — $1,500-$2,500 

4. Dublin, Ireland — $1,300 

3. Paris, France — $1,300-$1,900 

2. London, United Kingdom — $1,960 

1. Tokyo, Japan — $1,400-$2,100


Top 10 Domestic Vacation Destinations


10. Austin, TX — $1,170 

9. Washington, D.C. — $1,580 

8. Chicago, IL — $2,260  

7. Key West, FL — $1,075 

6. Miami, FL — $1,800 

5. Orlando, FL — $2,580 

4. Los Angeles, CA — $2,100 

3. Honolulu, HI — $2,250 

2. Las Vegas, NV — $2,580 

1. New York, NY — $2,540

Average vacation costs broken down by category

The average cost of a vacation is based on a variety of factors, like whether you’ll rent a car or rely on public transit. That’s why it’s useful to break down travel expenses into different categories, which can help you plan your vacation budget with greater detail and accuracy. Some of the most important categories to consider include: 


  • Hotels and Lodging: Plan on allocating about 20% to 25% of your budget toward lodging and accommodations. 

  • Transportation: Transportation-related expenses, like airfare, taxis, and Uber make up around 45% of the average vacation cost. 

  • Food and Drink: Restaurants, bars, and other dining experiences make up anywhere from 15% to 30% of the average vacation budget. 

  • Entertainment and Activities: The average traveler puts about 10% of their budget toward tours, concerts, and other entertainment.


Average transportation costs

Depending on how you plan to get around, transportation costs might include: 


  • Airfare

  • Bus tickets 

  • Gas 

  • Luggage or carry-on fees 

  • Parking fees 

  • Public transportation

  • Rental vehicles and insurance 

  • Rideshare services like Lyft and Uber

  • Tolls 

  • Train tickets


Factors that can impact your transportation costs include: 


  • Whether you’re traveling abroad or domestically 

  • What time of year you travel and whether it falls near a holiday

  • Your preferred method of transportation

  • How far in advance you reserve or purchase tickets

  • What type of tickets you purchase, such as coach vs. business class  


With those factors in mind, the average domestic flight costs around $382 per passenger, as estimated by the U.S. Department of Transportation.  By comparison, the average cost of an international flight ranges between $1,217 for an economy ticket in coach to $6,972 for a business class ticket. Here are some other examples of average transportation costs to plan for:  



Average hotel and accommodation costs

The average cost of a single-occupancy hotel room in the United States is $171 per night, $513 for a 3-day stay, and around $1,200 for a full week. For a double-occupancy room, the average nightly rate increases to $262. And, for a vacation rental like Airbnb, the average nightly cost is closer to $314. However, the price can vary significantly depending on factors like: 


  • The type of accommodations you choose, such as Airbnb, Vrbo, luxury hotels, budget hotels, or RV campsites 

  • Your hotel or vacation rental’s location, such as if it’s in the heart of downtown or right on the shoreline 

  • Whether you pay for additional amenities, such as spa treatments or mini-fridge beverages


If you aren’t sure how much of your budget to put toward guest lodgings, remember that hotels and accommodations usually make up one fifth (20%) to one quarter (25%) of the average vacation cost.

Average food and dining costs

The cost of food on vacation varies, because it depends on factors like: 


  • Your travel destination

  • What restaurants, markets, or street vendors you dine at 

  • How frequently you eat out vs. preparing meals for yourself 

  • Whether you purchase alcoholic beverages 

  • Whether your hotel offers complimentary meals 

  • Spending on tips and gratuities 


With that in mind, the average vacation cost for food and drink is around $58 per person, per day when traveling in the U.S. Here are a few more examples of some typical vacation costs in the food and drink category: 



Remember that food and drink typically makes up around 15% to 30% of an overall vacation budget. If you think of yourself as a foodie, you’ll likely want to allocate at least 30% of your budget for restaurants, street vendors, and other dining experiences.

Average entertainment and activity cost

Your entertainment vacation costs depend on what you plan to see and do during your trip. Maybe you want to go exploring at Grand Canyon National Park, take in the hottest shows on Broadway, or get up close and personal with the Mona Lisa at the Louvre. 


Depending on your travel itinerary, plan on setting aside around 10% of your vacation budget for activities and events, which is the average amount most people spend in this category. Here are some examples that show how the average vacation cost breaks down in the entertainment category: 



Average vacation costs across different generations

Research by the travel insurer Squaremouth reveals sharp differences in the average vacation cost between generations. The Silent generation, which includes people born from 1928 to 1945, spend approximately $3,300 per vacation on average. In comparison, Generation Z — the generation born from 1997 to 2012 — spend an average of less than $2,000 per vacation.

There may be multiple factors driving this spending gap. For instance, older Americans typically have more savings than their Gen Z and Millennial counterparts, according to data from Experian. Retired vacationers also tend to have more scheduling flexibility, while younger travelers might opt for shorter vacations that fit their work schedules.

How vacation spending has changed over time

Trends in consumer vacation spending have shifted over the past decade —  especially since the COVID pandemic and travel restrictions of 2020. According to data from insurer Generali Global Assistance and market research firm Ipsos, a survey of more than 1,000 people across 15 countries revealed that spending on U.S. summer travel is up 27% from pre-pandemic levels. The survey also found that the average summer travel budget increased by 6% from 2022 to 2023. During that period, summer vacation spending rose from $2,750 to more than $3,000.

Understanding inflation’s role in vacation costs

Inflation is impacting the global economy, which has also had an impact on the average price of a vacation. Recent analytics showed that the nightly cost of short-term rentals increased by 5.6% in 2022, while the average cost of airplane tickets increased by a whopping 36%. And, from 2023 to 2024, the one-week average vacation cost climbed by roughly 26%, representing a price hike of more than $400. 


With inflation driving up the cost of vacation both domestically and abroad, there’s a growing demand for budget-friendly travel options. For example, using buy now, pay later lets you split airfare into 4 payments1 instead of one. Let’s look at some other strategies that can help you save for vacation this year.

Vacation planning on a budget

Here are a few simple travel tips that can help you reduce your vacation costs this summer: 


  • Create a detailed vacation budget, including categories for food, transportation, lodging, and entertainment. 

  • Plan as far in advance as possible, which will help you snag better deals on lodging, transportation, and event tickets. 

  • Consider traveling during the off-season when airfare and hotel costs are lower. 

  • Prepare some of your own meals at your hotel or vacation rental, instead of exclusively dining out. 

  • Use buy now, pay later services like Zip that help you manage your budget by breaking up your travel expenses. 


For more tips on reducing your travel costs, check out our detailed guide to planning a vacation on a budget.

Preparing for the true cost of your vacation

To recap, the average vacation cost for a one-week trip within the United States is around $1,990 per person, or about $3,980 for two people. The average cost of an international vacation is around $2,300 for one person, or about $4,600 for two people. However, vacation costs can vary depending on factors like your destination, transportation method, and group size.  


No matter what your vacation plans look like, Zip can help you manage your budget and pay for your travel expenses with confidence. Zip is a free mobile app that lets you split purchases into 4 easy installments1, giving you the power to pay off vacation costs over time. Download the Zip app to explore deals on airfare, hotels, museum tours, concert tickets, restaurants, cruises, and more.