by The pound is finally back to 2019 levels against the US dollar after a few years in the doldrums. But if you think that means a bargain holiday, think again. Attractive entry prices, expensive hotels and an even higher cost of living combine to make a trip to the States an expensive proposition.
As the third most expensive city to live in the world according to Forbes (after joint winners Singapore and Zurich), New York makes for a very interesting break. But visits to attractions like Disney can add up quickly, too.
The price of multi-day tickets to the park increased during 2023, despite a 2022 study by TikTok user Pie Chart Pirate finding that admission costs had already risen 3,871 percent since it first opened in 1971. Museums at already setting up an expensive ticket. prices too. In 2023, the San Francisco Museum of Modern Art increased its admission fee from $25 (£19.60) to $30 (£23.50), bringing it in line with New York’s Metropolitan Museum of Art.
“I’m in the States about four months a year myself,” says Alan Wilson, American and Canadian specialists, Bon Voyage. “There’s no getting around the fact that, just like here, compared to three or four years ago, everything has gone up.”
It can also be seen in supermarkets. According to currency exchange specialists Moneycorp, consumer prices are 29.2 per cent higher in the UK than the US (although that figure includes rent). US salaries are generally much higher and groceries are priced accordingly. It means food bills could come as a shock to self-catering Brits – the average price of a loaf of fresh white bread in New York is £3.60, and a regular cappuccino around £4.50, according to data from Numbeo cost. live database.
And while it used to be reliably cheap to eat out in America, that’s no longer the case. Restaurant prices increased 5.3 percent between November 2022 and November 2023 according to the USDA (Department of Agriculture). To combat spiraling costs, some restaurants have started adding surcharges to bills – on top of the hefty tips that often poorly paid wait staff expect.
Meanwhile, the country is famous for its resort fees (hotels charge extra for the use of the pool, internet and other facilities that can be up to $100 per night), especially in tourist towns such as Las Vegas. Because these fees go directly to the hotels, they are sometimes not readily visible on booking sites or tour operators and can be a nasty shock at the end of your stay. The resortfeechecker.com website has a search facility that allows visitors to see any hidden extras before booking.
Even before these extras, US 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.
Outside of the most famous cities, however, there are still bargains to be found. “Big ticket places – San Francisco, New York, Miami and the like – seem to have increased exponentially in price. But the Deep South is one of our best selling areas [and] Mississippi is the second cheapest state in America to live in and that translates to lower housing costs and lower dining prices,” says Wilson.
There is one thing that is cheaper in the US: petrol. But car rental costs – as in Europe – increased by 48 percent after the pandemic, a 48 percent increase between 2019 and 2022, according to data from the Bureau of Labor Statistics.
“Essentially, the car rental companies sold their entire fleet when Covid hit and, when they went to buy back their fleet 18 months later, there was a shortage of parts… although production levels were not what they were before ,” says Wilson. “That adds car hire [prices] up enough. And hotels are charging ridiculous amounts to park your car – we’ve heard as much as $65 (£51) a night.”
Although they have dropped slightly over the past year, costs are still high and additional parking will also be needed – even at Walt Disney World. “People don’t really take that into account,” says Helen Wright of 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 sooner you book, the cheaper the holiday will be because airlines and hotels want to do business early the following year,” says Wright. “This idea that you’re going to get a deal at the last minute still seems out of date but it probably hasn’t been true for about 20 years.”
Alternatively, do what Bon Voyage customers have and try Canada instead. “It’s growing for us and I think that has a lot to do with price,” says Alan Wilson. “The exchange rate for the Canadian dollar is still around 1.7 per pound but we haven’t had much relief from the US dollar. Canada has been a lot bigger for our whole business in the last couple of years and it’s a great product. Everyone loves Canada and loves Canadians.”
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Change your city
A visit to New York or San Francisco might blow the budget, but America’s lesser-known cities are much cheaper. Helen Wright recommends Pittsburgh as an alternative to the Big Apple. “There is great art [and] very good food scene,” she says.
Car hire charged
If your flight-drive starts in a city, hire a car later in the trip. “Get around at Uber and pick the car up from a downtown location on your way out,” says Alan Wilson. “We’ve cut the average length of a car hire from around 15/16 days to around 10 days and that saves a lot of money.”
Avoid the city pass
The United States has plenty of schemes that offer discounted rates on many things, but you need to cover a lot of ground to get your money’s worth. Do the math before buying passes: it might work out cheaper to book directly.
Skip the theme park meals
You’ll make significant savings by avoiding a sit-down Disney restaurant. “Don’t go to a different restaurant every night because that will be obvious,” says Wright. “Just leave a hot dog.”
Avoid weekends in popular resorts
“In Vegas, hotel rooms cost twice as much on the weekend because of visitors from LA and around,” says Wilson. Save by checking in between Sunday and Thursday. A double room at Kimpton Rowan Palm Springs costs £343 on a Monday night in April and £574 on a Friday night in the same week via booking.com, for example.
Try the train
“Amtrak can be a great value for money, especially in the Northeast: Boston, New York, Philadelphia,” says Wilson. “It’s very famous in this country, but it’s improved a lot in the last five years or so”.
Bring your own bottle
A modest bottle of wine in a New York restaurant can set you back $100 (£78.50), according to Wilson, while Wright was surprised to pay $35 (£27.50) for a glass of Prosecco in the theatre. Look for BYOB restaurants – but also watch out for obscene corkage fees.
Consider a trip
“Our data shows that, on average, people save up to 26 per cent by booking with an escorted tour provider versus a DIY tour,” says Kelly Jackson of Costsaver Tours.
This story was first published in October 2023 and has been revised and updated.
