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AAA warns Labor Day travelers of higher airfare, hotel, and fuel costs

AAA data shows domestic roundtrip airfare averages $750, while gas prices on Labor Day 2025 averaged $3.19 per gallon nationally.

Reported · Written up by our desk · Property Insurance

AAA says Labor Day travel costs are rising this year, with travelers facing heavier traffic alongside higher fuel, airfare, and hotel prices. The auto club points to booking data showing strong demand for destinations across the U.S., Canada, and Europe.

According to AAA, average domestic airfare is up 2% year over year, averaging $750 for a roundtrip ticket, while airfare to the most popular Labor Day destinations is nearly 20% higher at an average of $790. AAA also reports international airfare is down 4% versus last year.

AAA says accommodations are also more expensive, with domestic hotel bookings up 9% compared with last Labor Day weekend and international hotel bookings up 12%. Cruises departing from U.S. ports are 4% less expensive than last year, averaging $2,700 per booking.

For motorists, AAA expects gas prices could remain higher than a year ago, citing that the national average gasoline price on Labor Day 2025 was $3.19 per gallon, and $2.99 in Wisconsin. Energy analysts attributed the higher fuel costs to crude oil still costing more than a year ago, plus strong refinery demand and relatively low crude inventories, while INRIX expects the heaviest congestion on Thursday and Friday.

Latest closeWTI crude $90.70 ▲0.5%|Gasoline (RBOB) $3.096 ▼1.2%

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