Higher Airfares Send US Travelers to the Road and Into Hotels

US spring travel is shifting more toward the road, and hotels are seeing the effect.

The American Automobile Association (AAA) said many spring-break travelers are choosing to drive instead of flying. Florida remained the top domestic destination, while Texas, Arizona, and California also showed strong travel activity.

Higher airfares are making short road trips more appealing

One reason for this shift is the rising cost of flying. US inflation data showed that airline fares in March were up 14.9 percent from a year earlier. Hotel prices also increased, but much more slowly.

Hotel rates are rising in leisure and drive-to markets

Hotel performance data suggests that this demand is helping support prices. STR data published by CoStar for the week ending March 28 showed occupancy at 66.8 percent and average daily rate at $170.30. Revenue per available room also increased year over year.

Some leisure-heavy markets performed especially well. CoStar said spring-break destinations such as Florida, Hawaii, and Southern California helped support hotel results even when the broader national picture became less even.

Limited new supply is helping hotels keep rates firm

Another reason hotel prices are holding up is the slow pace of new supply. CoStar said the expected US hotel supply growth for 2026 was just 0.7 percent. Fewer openings mean less new competition, which gives existing hotels more room to hold rates when demand is healthy.

Hotels are also still dealing with higher operating costs. That gives operators another reason to protect pricing instead of cutting rates to fill rooms.

Demand is still holding up

The most recent data suggests the US hotel market remains resilient, even if weekly results move up and down because of calendar effects. CoStar said the first quarter of 2026 was the strongest first quarter on record for US hotel room demand.

This also fits a broader pricing story across hospitality in 2026. Hotel rates are expected to keep rising this year even as inflation and higher transport costs continue to shape traveler behavior. That makes the current US road-trip trend more important for hotels, because strong regional demand is arriving at a time when pricing is already under upward pressure across the lodging market.

Photo by Michelle Oude Maatman on Unsplash