(CBS) Millions of Americans are preparing for their annual vacations as the Transportation Security Administration predicts this will be the busiest summer travel season ever.
Compared to last summer, flight prices are down, while hotel room rates are up, and demand is expected to be heavy. “I think travel will be up in the mid-single digit range and I think the airlines will continue to see very heavy traffic,” said Priceline CEO Brett Keller, adding that flight and rental car prices are down between 5-10% compared to last summer.
The travel site finds the most popular summer domestic destinations are Miami, New York, and Honolulu, while London, Cancun and Toronto top the international list.
But with inflation bringing overall higher prices, not everyone can afford a trip, according to commercial real estate company CoStar. It finds budget hotel vacancies surpassed 50% in the first quarter. “Room demand for economy properties dropped by 6% compared to the same first quarter last year,” said CoStar National Director Jan Freitag. “Whereas on the upper end for luxury class hotels, room demand grew by just under 5%.”
Virtuoso says that’s increasing luxury hotel room rates, an average of almost 10% over last summer. The travel network is holding its annual symposium at Atlantis the Royal in Dubai. The 43-story resort just celebrated its first anniversary. It brands itself as ultra-luxury, with 17 restaurants and bars, a sky pool stretching almost 300 feet overlooking the Arabian Sea and water-themed décor.
When it comes to summer travel, Virtuoso is seeing a migration from the usual European hotpots to cooler countries in the north. “That includes big upticks in Iceland, up 49% and Sweden, up 47%,” said Virtuoso Executive Vice President David Kolner.
If you’re considering visiting always-popular Italy, plan a trip while the Olympics are drawing crowds in Paris. Virtuoso says bookings are down around 7% during that three-week window in July and August.
The air booking site Hopper finds 87% of its users plan to travel this summer, but the majority have not booked their trips just yet. 75% estimate they’ll spend the same or more compared to last year.