Americans are squeezing in one last summer escape this Labor Day weekend, but the traditional end-of-season getaway is coming with a bigger price tag–and potentially longer waits on highways and at airports.
AAA booking data points to strong demand for domestic and international travel, with Seattle, Orlando and Boston leading the most popular U.S. destinations and Rome, Vancouver and London topping the international list. Yet travelers heading out for the holiday are confronting higher hotel and domestic airfares, while motorists face the prospect of elevated gasoline costs and heavy traffic.
One notable exception is cruising: Fares for cruises departing from U.S. ports are running about 4% below last year’s levels, offering travelers a relatively cheaper alternative to traditional land-based vacations.
“Labor Day has long been a popular time for a final summer getaway, and travelers continue to prioritize vacations with family and friends,” said Nick Jarmusz, director of public affairs for AAA – The Auto Club Group. “Whether it’s a cruise, a national park adventure, or an international trip, travelers are eager to make the most of the holiday weekend.”
Airfares Rise as Popular U.S. Destinations Draw Travelers
The cost of flying within the U.S. has edged higher over the past year. AAA’s booking data shows average domestic round-trip airfare at about $750, roughly 2% above last Labor Day.
For travelers headed to the holiday weekend’s most sought-after domestic destinations, however, the increase is considerably steeper. Average round-trip fares to those locations are approaching $790, nearly 20% higher than a year ago.
Seattle ranks as the most popular domestic destination in AAA’s bookings, followed by Orlando, Boston, Denver and New York. Chicago, Anaheim/Los Angeles, Las Vegas, Anchorage and Atlanta round out the top 10.
The international picture is more favorable for travelers willing to leave the country. Average international airfares are down about 4% from last year, helping sustain demand for European and Canadian destinations despite higher lodging costs.
Rome leads AAA’s international rankings, followed by Vancouver, London, Dublin and Paris. Calgary, Barcelona, Athens, Amsterdam and Halifax complete the top 10.
Hotels Add to the Cost of the Holiday
Airfare isn’t the only expense putting pressure on travelers’ budgets.
Domestic hotel bookings are costing about 9% more than they did during last year’s Labor Day period, according to AAA. International hotel stays have risen even more, with average booking costs up approximately 12%.
The combination of higher lodging costs and elevated domestic airfares means travelers planning a traditional city vacation may find that their total trip expense has increased substantially even before meals, entertainment and transportation are added.
For some consumers, that is prompting a search for bundled or alternative vacation options.
Cruises Offer a Relative Bargain
Cruising is emerging as one of the few major travel categories where prices have moved in the consumer’s favor.
AAA data shows cruises departing from U.S. ports averaging about $2,700 per booking, 4% less than last year.
Alaska cruises are particularly popular, helping boost demand for gateway cities including Seattle and Anchorage, as well as Vancouver in Canada. Cruise vacations can also appeal to travelers looking for greater cost predictability because accommodations, transportation between destinations, meals and entertainment are generally packaged into a single purchase.
National parks are another major draw.
Travelers arriving through Denver and Las Vegas, for example, are using those cities as launching points for trips to Rocky Mountain, Arches, Zion and Grand Canyon national parks.
The result is a Labor Day travel map that extends well beyond traditional beach and city vacations, with outdoor destinations and cruises capturing a significant share of late-summer demand.
Highways Could Be the Biggest Bottleneck
For Americans driving to their destinations, the cost equation is less favorable.
Traffic is expected to build sharply Thursday and Friday as millions of travelers leave for the holiday weekend, with congestion likely to be heaviest around major metropolitan areas and popular tourist corridors.
Gasoline prices could also add to the expense.
The national average price of gasoline on Labor Day 2025 was $3.19 a gallon, while Wisconsin’s average was $2.99. Current market conditions suggest motorists could face prices above those levels this year.
Crude oil represents roughly half of the retail price of gasoline, and oil prices remain higher than they were a year ago. Strong refinery demand and relatively low crude inventories are also supporting gasoline prices.
For families traveling hundreds of miles by car, even modest increases at the pump can translate into a meaningful addition to the cost of a holiday trip.
The End of Summer Still Wins
Despite higher prices across much of the travel market, demand remains resilient.
The pattern suggests that Americans continue to place a high value on travel with family and friends, even as they become more selective about how they spend their vacation dollars. Some are paying the premium for highly sought-after domestic destinations, while others are finding value overseas or shifting toward cruises and outdoor adventures.
This year’s Labor Day travel market therefore reflects a broader consumer balancing act: people still want to travel, but they’re increasingly weighing the cost of the experience against the convenience and predictability of the package.
With Seattle, Orlando, Boston, Rome and London among the strongest draws, the final major travel weekend of summer is shaping up as both a test of consumers’ appetite for discretionary spending and a reminder that the post-pandemic travel boom has not yet lost its momentum.
Top 5 Domestic Destinations
- Seattle, Washington
- Orlando, Florida
- Boston, Massachusetts
- Denver, Colorado
- New York, New York
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