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How to save on hotels and flights ahead of the most expensive holiday travel season in 10 years

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It’s time to start planning your travel for the winter holiday season if you haven’t already. After all, 2026 is expected to be the most expensive holiday travel season in 10 years.

That’s according to new data from the travel booking site Hopper, which found round-trip domestic airfares for Christmas are expected to average $452, up 23% from 2025. Thanksgiving travelers will feel the pressure too, as round-trip fares average $402, up 31% year over year. And that’s not the only higher cost: Hotel prices for Christmas are averaging $197 per night, 18% higher than in 2025.

Elevated jet fuel costs from the Iran war drove the price increases, according to Hopper. But a few tools can make holiday travel more affordable.

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How to beat holiday travel inflation

Save on air travel with credit cards

A travel credit card may help lower some travel costs. Many cards offer rewards you can redeem for future travel or perks that make your current plans more affordable and convenient.

If you’re loyal to a certain airline or live near one of its hubs, getting a co-branded airline credit card could be an option.

Cards like the Southwest Rapid Rewards® Priority Credit Card can help you save on bag fees, as cardholders receive a first checked bag free. You and up to eight other passengers traveling with you on the same reservation will also get access to a complimentary Preferred seat at booking, as well as extra legroom upgrades within 48 hours before departure.

Similarly, the United℠ Explorer Card can enhance your travel experience. The card has a $0 intro annual fee for the first year and then costs $150 per year, and it gives you two United Club℠ passes per year, plus free checked bags for the primary cardholder and one companion on the same reservation.

Book your hotels and stays with the right card

The right credit card could help you get loyalty status, upgrades or even free nights at hotels. And the perks a hotel credit card could help you save.

For example, the IHG One Rewards Premier Credit Card offers free Anniversary Nights and IHG Gold Elite Status, as well as the ability to get every fourth night free when you redeem points for a four-night stay at an IHG property.

*See rates and fees, terms apply. Information about The New IHG One Rewards Premier Credit Card has been collected independently by CNBC Select and has not been reviewed or provided by the issuer prior to publication.

Similarly, the World of Hyatt Credit Card can help you earn complimentary World of Hyatt Discoverist status, which can help you access preferred-room upgrades, special member rates and waived resort fees on award nights.

*See rates and fees, terms apply. Information about the World of Hyatt Credit Card has been collected independently by CNBC Select and has not been reviewed or provided by the issuer prior to publication.

Use your points for travel

If you already have a lot of points from an existing travel credit card, consider using them. After all, points can be devalued or subject to general inflation, according to CNBC Select senior reporter Jason Stauffer, so using them regularly is a good idea.

While you may pay more points for flights at peak times — many major airlines have switched their award flights to dynamic pricing, which reflects demand — you could still save by being flexible on your dates. For example, Sunday, Nov. 29 is expected to be one of the more expensive travel days of the year, according to Hopper, so you could save by flying on Monday, Nov. 30 or Tuesday, Dec. 1 on your return trip from Thanksgiving.

If you have a flexible travel rewards credit card that earns transferable points, you could also take advantage of deals by transferring points to airlines or hotel partners.

The *Bilt Obsidian Card (see rates and fees) is a flexible travel rewards card. It allows you to turn your rent or mortgage, as well as everyday purchases like groceries, into Bilt Points. You can then redeem those points for several options, including travel, and Bilt has a long list of transfer partners that accept points at a 1:1 ratio. While it does have an annual fee, Obsidian cardholders earn a $100 annual Bilt Travel Hotel credit when booking a stay of at least two nights — $50/$200 semi-annually awarded as a statement credit for qualifying Bilt Travel Portal hotel bookings. 

Get travel insurance

Travel delays and cancellations aren’t uncommon during the holidays — high travel volumes and weather conditions can disrupt plans. Unexpected illnesses and accidents could also require you to change your plans.

If you don’t have travel insurance, you could end up spending more than you expected, or forfeiting non-refundable travel expenses. Even for domestic trips, travel insurance can come in handy.

Many top travel insurance brands offer coverage for mishaps ranging from airline delays to lost bags.

If you’re traveling with a family, one of our top picks is Allianz, which offers free coverage for children under 17 with each traveling parent or grandparent (not available to Pennsylvania residents).

Allianz Travel Insurance

  • Policy highlights

    Single-trip and multi-trip/annual policies and a rental car plan. OneTrip Prime and Premier plans include coverage for one child 17 or younger when accompanying a covered adult.

  • Cancel For Any Reason coverage

    Reimburses 80% of nonrefundable trip costs if you cancel at least 48 hours before departure.

  • Pre-existing condition waiver

    Included if policy is purchased within 14 days of initial deposit

We also like Faye for its online-first experience and options like pet care coverage, which offers up to $250 for boarding if your return trip is delayed.

Faye Travel Insurance

  • Policy highlights

    One single-trip plan with optional add-ons for pet care, adventure sports and damage to vacation rentals

  • Cancel For Any Reason coverage

    Up to 75% reimbursement of nonrefundable trip costs if purchased within 14 days of initial trip deposit.

  • Pre-existing condition waiver

    Available if policy is purchased within 14 days of initial trip deposit.

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Editorial Note: Opinions, analyses, reviews or recommendations expressed in this article are those of the Select editorial staff’s alone, and have not been reviewed, approved or otherwise endorsed by any third party.

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