Marketplace All-in-One The K-shaped cost of holiday travel
Dec 22, 2025
Join Nova Saffo, a Marketplace reporter specializing in consumer travel economics, and Mitchell Hartman, a fellow reporter focusing on AI in retail, as they delve into the complexities of holiday travel. The duo reports on AAA's forecast of 122 million travelers, revealing lower gas prices but rising costs for hotels and flights. They also explore how AI is revolutionizing holiday shopping, sharing Hartman's humorous experiment with ChatGPT to find the perfect gift, while discussing the potential pitfalls of AI recommendations favoring larger retailers.
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Driving Costs Fall While Other Travel Rises
- Driving is cheaper this holiday season because national average gas prices fell below $3 a gallon for the first time in four years.
- Other travel costs like car rentals, hotels, and domestic airfare are higher, creating a split in travel expenses.
Airlines Gain Pricing Power Amid Rising Demand
- Airlines raised fares as demand grows and they hold pricing power despite adding more seats.
- Consumers still plan higher discretionary spending in Q4, showing demand resilience against price increases.
Jim Beam Pauses Distilling To Rework Operations
- Jim Beam will pause distilling at its main Kentucky facility in 2026 to invest in site improvements.
- The move reflects broader U.S. spirits industry pressures from tariffs, market gluts, and softer domestic demand.