Marketplace Morning Report The K-shaped cost of holiday travel
Dec 22, 2025
Joining the conversation are Nova Saffo, a savvy business reporter focusing on consumer and travel trends, and Gideon Long, a BBC World Service business reporter with insights on the bourbon industry. They discuss the predicted surge of 122 million holiday travelers, the impact of lower gas prices on driving costs, and soaring expenses for flights and hotels. Long adds a twist, detailing Jim Beam's production pause and the industry's challenges, while also highlighting how AI is reshaping holiday shopping by generating gift ideas and streamlining retail purchases.
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K-Shaped Travel Costs
- Driving is cheaper this holiday season thanks to national gas averages below $3 a gallon.
- Other travel costs like car rentals, hotels, and domestic fares have risen, reflecting uneven travel expenses.
Airlines' Pricing Power
- Airlines raised domestic fares as more people choose to fly and carriers hold pricing power.
- Airlines for America expects nearly 3 million passengers a day and added seats to meet growing demand.
Jim Beam Pauses Main Distillery
- Jim Beam will pause distilling at its main Kentucky facility in 2026 to invest in site enhancements amid a domestic demand slump.
- The bourbon industry faces a whiskey glut and higher costs from retaliatory tariffs affecting sales.