Budget travel costs rise as Groupon and Hostelworld report activity gains

Budget travel costs 2026 are being shaped by sharply higher airfares and gasoline prices, even as some companies report more activity in selected value-focused products. The Bureau of Labor Statistics said July airline fares were 25.5% above a year earlier and gasoline prices were up 24.6%, while Groupon and Hostelworld separately reported higher orders and transactions.

Overall U.S. consumer prices rose 3.4% in the 12 months through July, according to the Bureau of Labor Statistics. The data point to uneven pressure across travel expenses: airline fares rose 2.2% during July, but the lodging-away-from-home index declined 2.8% that month.

What do the latest budget travel figures show?

Groupon told CNBC that its portfolio of “mystery vacation” products received about 5,500 orders in the second quarter of 2026. That was more than five times the volume recorded in the first quarter of 2025, when the company had only its flagship package.

A mystery vacation package combines airfare and accommodation, but the customer does not select the destination. CNBC reported that participants generally learn where they are going within days of submitting the required paperwork. Groupon advertises its flagship option at $199 to $299 per person, varying by departure airport, and markets it as a 50% discount. Those price and discount claims are Groupon’s marketing statements, rather than independently verified measures of savings.

Hostelworld, which operates a booking platform for hostels and other low-cost accommodation, said transactions by customers in the United States and Canada increased 10% in the first half of 2026 from a year earlier. The Ireland-based company also reported a higher net average transaction value across regions.

• Air fares: up 25.5% over the 12 months through July, according to the Bureau of Labor Statistics.
• Gasoline: up 24.6% over the same period, despite a 2.9% seasonally adjusted decline during July.
• Lodging away from home: down 2.8% during July, according to the monthly CPI release.
• Groupon mystery trips: about 5,500 Q2 orders, based on figures supplied by Groupon to CNBC.
• Hostelworld: U.S. and Canadian transactions up 10% in the first half, according to the company.

How should travelers and investors read these signals?

The official inflation data establish the rise in air fares and gasoline prices, but the available figures on mystery trips and hostel bookings are company-reported indicators rather than measures of the whole travel market. They show reported momentum in those channels, without establishing that higher prices caused customers to select them.

Other value-oriented operators have cited resilient activity. Carnival said demand for sailings through the rest of 2026 and beyond exceeded the comparable prior-year periods, and reported that revenue in a segment including onboard spending rose more than 7% year on year in its fiscal second quarter. Its finance chief, David Bernstein, told CNBC that roughly half of the U.S. population lives within a five-hour drive of a Carnival departure port, an option that may allow some customers to avoid air travel.

CNBC also reported, based on PNC card data, that consumers earning less than $36,675 annually spent 7% more on travel in July than a year earlier. The data indicate higher spending by that cohort, but do not identify changes in destination, accommodation or transport choices.

For a fuller view of the price data, readers can consult the Bureau of Labor Statistics’ July 2026 CPI release.

This story draws on original reporting from CNBC.