The overall cost of travel within the U.S has been declining since mid 2015 according to the latest data from the U.S. Department of Transportation.
The price of the average domestic airline ticket fell to $372 in the last quarter of 2015, which is a drop of six percent compared to the equivalent period in 2014. Travel experts says lower prices are the result of a drop in airline fuel of between 30 and 40 percent over the last year.
Travelers are enjoying even bigger savings in car rental costs. The average daily car rental rate in the last quarter of 2015 was $38.88, which equates to a 13.6 percent drop compared to the same period in 2011.
Although the lowering price of fuel has been a major reason for the drop in travel costs, Parker Schlank, vice president of growth for Travel Leaders Corp, says a series of mergers among the major car companies has lead to a price war among the remaining competitors.
He says added competition from ride-sharing services Lyft and Uber has also driven down costs. “People want to do what is easiest and fastest,” Schlank says.
The merging of different travel modes was also bringing travel costs down. American Airlines recently entered a partnership with Uber which offers the airlines passengers discounts to use the service. As part of the partnership, American's loyalty reward program members can get $25 off their next Uber ride.