The pound is finally back to 2019 levels against the US dollar after a few years in the doldrums. But if you think this means cheap vacations, think again. Entrance fees to attractions, expensive hotels, and higher costs of living still make a trip to the United States a pricey proposition.
As the third most expensive city in the world to live in according to Forbes (after joint winners Singapore and Zurich), New York makes for a particularly eye-catching holiday. But visits to attractions such as Disney can also add up quickly.
Multi-day tickets to the park rose in price in 2023, despite the fact that a 2022 study by TikTok user Pie Chart Pirate found that admission prices had already increased by 3,871 percent since it opened in 1971. Museums are already offering expensive tickets prices too. In 2023, the San Francisco Museum of Modern Art increased its entrance fee from $25 (£19.60) to $30 (£23.50), bringing it in line with the Metropolitan Museum in New York.
“I spend about four months a year in the United States,” says Alan Wilson of the America and Canada specialist Bon Voyage. “You can’t ignore the fact that, just like here, compared to three or four years ago, everything has gone up.”
You also notice this in the supermarkets. According to currency specialist Moneycorp, consumer prices in Britain are 29.2 percent higher than in the US (although that figure includes rent). American salaries tend to be significantly higher, while groceries are priced accordingly. It means food bills could come as a shock to subsistence Britons – the average price of a fresh white loaf in New York is the equivalent of £3.60, and a regular cappuccino around £4.50, according to data from Numbeo’s cost of living database.
And while eating out in America used to be reliably cheap, that’s no longer the case. According to the USDA (Department of Agriculture), restaurant prices increased 5.3 percent between November 2022 and November 2023. To combat rising costs, some restaurants have also started charging surcharges – on top of the high tips that poorly paid wait staff often expect.
Meanwhile, the country is known for its resort fees (an additional hotel fee for use of the pool, internet and other facilities that can amount to more than $100 per night), especially in tourist cities like Las Vegas. Because these charges go directly to the hotels, they are sometimes not immediately visible on booking or tour operator sites and can lead to a nasty shock at the end of your stay. The website resortfeechecker.com has a search function that allows visitors to see any hidden extras before booking.
Even before these extras, American hotels are expensive. According to Skyscanner, the average price of a five-star hotel in New York City is currently £567 per night, compared to £386 in London.
However, there are still bargains to be found outside the best-known cities. “Big ticket places – San Francisco, New York, Miami and the like – seem to have increased exponentially in price. But one of our largest sales areas is the Deep South [and] Mississippi is the second cheapest state in America to live in and that translates into lower housing costs and lower restaurant prices,” said Wilson.
There is one thing that is cheaper in the US: gasoline. But car rental costs – as is the case in Europe – have soared after the pandemic, by 48 percent between 2019 and 2022, according to data from the Bureau of Labor Statistics.
“The car rental companies essentially sold off their entire fleet when Covid hit and when they went to buy back their fleets 18 months later, there was a shortage of parts… while production levels were not what they were before,” says Wilson. “That’s car rental [prices] quite a lot. And hotels are increasingly charging ridiculous amounts of money to park your car – we’ve heard of as much as $65 (£51) per night.”
Although they have dropped slightly in the past year, costs remain high and you will also need to pay extra for expensive parking – even at Walt Disney World. “People don’t really take that into account,” says Helen Wright of the American travel blog Passport Stamps. “It starts at around $22 (£17.25) plus tax per day.”
Is there anything British holidaymakers can do to keep costs down? Book early to get started. “The earlier you book, the cheaper the holiday, as airlines and hotels want to do early business for the following year,” says Wright. “There still seems to be this outdated idea that you can get a bargain at the last minute, but that probably hasn’t been the case for 20 years.”
You can also do as many Bon Voyage customers do and try Canada instead. “It’s growing for us and I think a lot of that has to do with price,” says Alan Wilson. “The exchange rate for the Canadian dollar is still around 1.7 per pound, while we haven’t had much relief from the US dollar yet. Canada has become a much larger part of our overall business in recent years and it is a fantastic product. Everyone loves Canada and Canadians.”
Eight ways to save on an American vacation
Switch your city
A visit to New York or San Francisco may blow the budget, but America’s lesser-known cities are considerably cheaper. Helen Wright recommends Pittsburgh as an alternative to the Big Apple. “It has great art [and] a really good food culture,” she says.
Cut back on car rental
If your fly drive starts in a city, rent a car later in the trip. “Get around with Uber and pick up the car from a downtown location when you leave,” says Alan Wilson. “We have reduced the average car rental duration from about 15/16 days to about 10 days and that saves quite a bit of money.”
Beware of the city pass
The United States has many programs that offer discounts on multiple attractions, but you have to cover a lot of ground to get your money’s worth. Do the math before you buy passes: it may be cheaper to book direct.
Skip the theme park meals
You’ll save significantly by avoiding dining at Disney restaurants. “Don’t go to a different restaurant every night because that will just drain you,” says Wright. “Just have a hot dog.”
Avoid weekends at well-known resorts
“In Vegas, hotel rooms cost double on weekends because of visitors from the LA area,” says Wilson. Save by checking in between Sunday and Thursday. For example, a double room at the Kimpton Rowan Palm Springs costs £343 on a Monday evening in April and £574 on a Friday evening the same week via booking.com.
Try the train
“Amtrak can provide great value, especially in the Northeast: Boston, New York, Philadelphia,” says Wilson. “It has a bit of a bad reputation in this country, but it has improved enormously in the last five years.”
Bring your own bottle
A mediocre bottle of wine in a New York restaurant can cost $100 (£78.50) according to Wilson, while Wright was shocked to be charged $35 (£27.50) for a glass of Prosecco at the theatre. Look for BYOB restaurants, but also beware of ridiculous corkage fees.
Consider a tour
“Our data shows that on average, people save up to 26 percent by booking with a guided tour provider, compared to a do-it-yourself trip,” says Kelly Jackson of Costsaver Tours.
This story was first published in October 2023 and has been revised and updated.