For summer travel deals, stay off the beaten path

Many Americans are looking to travel this summer. Most hope to find a good deal.

Unfortunately, that’s not how the law of supply and demand usually works.

Air travel has nearly returned to pre-pandemic levels. Hotels are filling up and vacation rentals are booming.

“Demand across the board for summer 2022 travel is up 20% to 25% relative to 2019,” says Jamie Lane, vice president of research at AirDNA, a vacation rental data platform that tracks trends on Airbnb and Vrbo.

Volatile oil prices could also impact summer travel costs. The price of U.S. Gulf Coast kerosene-type jet fuel hit $3.77 per gallon in March, up from $0.46 per gallon at its low point in May 2020, according to the U.S. Energy Information Administration.

With so many factors pushing travel prices upward, where are the deals? And what destinations should budget-conscious travelers avoid altogether?

ZIG WHILE OTHERS ZAG

The rise of inflation has reminded consumers of a simple economic truth: When everybody wants something and there isn’t enough of it, prices go up. This is true for real estate, microchips and airfare.

So when planning a trip for this summer, it’s helpful to know where demand remains high.

“Destination resort areas are up 40% over 2019,” says Lane, of vacation rental occupancy rates.

Mexico has been a particularly hot destination for U.S. travelers, due to proximity and easygoing testing requirements. Indeed, the number of travelers to Mexico in March 2022 was up nearly 20% compared with 2019 levels.

Deals for summer travel in Mexico could still exist, but they’ll be harder to find than in less popular destinations. The same goes for rural U.S. destinations, especially those close to national parks.

“The strongest demand is in small-town...