The K-shaped cost of holiday travel

Summary

---

Podcast Summary: Marketplace Morning Report

Episode: The K-shaped Cost of Holiday Travel
Date: December 22, 2025
Host: Sabri Beneshore (in for David Brancaccio)

---

Overview

In this episode, Marketplace Morning Report explores the uneven ("K-shaped") impact of holiday travel costs, with in-depth analysis of trends affecting drivers, fliers, and the broader travel industry. Additional segments examine the bourbon industry’s supply challenges and delve into the rapid rise of AI-powered retail shopping, highlighting both promise and pitfalls for consumers.

The episode delivers concise, insightful coverage of how seasonal economics and technology trends intersect with everyday choices.

---

Key Discussion Points & Insights

1. The K-shaped Cost of Holiday Travel

[00:59 – 02:32]

• Holiday Travel Surge:
  AAA projects 122 million Americans will travel this holiday, a figure well above pre-pandemic levels.

• Mixed Cost Trends:

  • Drivers: Good news for the majority; gas prices for regular unleaded have dropped below $3/gallon for the first time in four years.
  • Other Costs:
    • Car rentals: up 1%
    • Hotel stays: up 13%
    • Domestic airfares: up 7% due to increased demand and airline pricing leverage.

• Consumer Spending: Despite higher prices, holiday travelers appear undeterred. Consulting firm PwC predicts discretionary spending will rise by over 3% in Q4 compared to last year.

  "Overall, consumers appear undeterred by higher prices."
  — Nova Safo [02:22]

---

2. Jim Beam Halts Main Distillery Production Amid Whiskey Glut

[02:32 – 03:54]

• Historic Pause:
  Jim Beam, an iconic American whiskey maker, will halt production at its main Kentucky distillery for all of 2026 to invest in site upgrades.

• Industry Challenges:

  • Kentucky’s $9 billion bourbon industry faces a whisky surplus and falling domestic demand.
  • Ongoing operations include bottling, warehousing, and smaller-scale distilling elsewhere.
  • Tariffs from US-initiated trade wars have raised costs and triggered Canadian boycotts, further straining American spirit makers.

  "Kentucky whisky and spirit makers across the US Are facing higher costs more broadly as a result of retaliatory tariffs from the trade war sparked by Donald Trump."
  — Gideon Long [03:18]

---

3. Artificial Intelligence Transforms Holiday Shopping

[05:15 – 08:22]

• Explosive Growth:
  Traffic to retail sites from AI tools is up 500–800% year-over-year (per Omnisend), with 80% of consumers using AI for tasks like idea generation, message writing, and budgeting this holiday.

• AI as a Shopping Companion:
  First-time experimenter Mitchell Hartman uses ChatGPT to find a gift for his elderly mother. ChatGPT offers personalized, practical suggestions, but cannot execute purchases directly—redirecting users to retailers like Amazon.

  "Nice. The bot's looking out for my holiday shopping mental health."
  — Mitchell Hartman [06:41]

• Personalization and Friction:

  • Retailers are embedding AI tools for end-to-end shopping, improving discovery and personalization (e.g., Nordstrom, Amazon).
  • Consumers expect AI to streamline the journey from idea to purchase.

  "For AI to assist a shopper, people don't want to be playing around. They want it like, show me the items, dude."
  — Vanessa Valiente [07:26]

• Market Concentration Concerns:
  AI-driven recommendations may disproportionately favor large retailers with many reviews, making it difficult for smaller brands to compete.

  "Are you just recommending all the big brands because they have the most... reviews?"
  — Marketplace Host (paraphrasing Greg Zakowicz) [08:08]

---

Notable Quotes & Memorable Moments

• Travel Costs Reality Check:

  "The mode of transportation most travelers will use—driving—is cheaper this holiday season. That's thanks to lower gas prices."
  — Nova Safo [01:28]

• On AI Shopping:

  "AI kind of gives you that clean look."
  — Greg Zakowicz, retail advisor at Omnisend [07:13]

• Retail AI Frustrations:

  "People don't want to be playing around. They want it like, show me the items, dude."
  — Vanessa Valiente [07:26]

• Market Inequities in AI:

  "That could make it hard for smaller companies to compete for consumers' attention when they shop using AI."
  — Mitchell Hartman [08:15]

---

Timestamps for Key Segments

• Holiday Travel Cost Breakdown: [00:59 – 02:32]
• Jim Beam & Bourbon Industry Segment: [02:32 – 03:54]
• AI Shopping Trends & Demonstration: [05:15 – 08:22]

---

Takeaway

Whether navigating volatile travel costs or the fast-changing world of holiday shopping, Marketplace Morning Report underscores how economic shifts, technology, and policy shape consumer behavior and business realities. The episode balances data-driven analysis with accessible storytelling, making today’s market forces clear and relevant.

---

Transcript

[Marketplace Host]

This podcast is supported by Odoo. Some say Odoo business management software is like fertilizer for businesses because the simple, efficient software promotes growth. Others say Odoo is like a magic beanstalk because it scales with you and is magically affordable. And some describe Odoo's programs for manufacturing, accounting and more as building blocks for creating a custom software suite. So Odoo is Fertilizer Magic Beanstalk building blocks for business Odoo exactly what businesses need. Sign [e-mail] that's o d o o.com.

[Wealth Enhancement Sponsor]

This Marketplace podcast is supported by Wealth Enhancement, who understand that dreams don't happen by chance. It takes a plan. They're ready to build your wealth. Blueprint for retirement, investing, taxes and everything else your financial life brings. It reveals gaps and highlights opportunities you may have missed at no cost to you. Find out [e-mail] Blueprint.

[Sabri Beneshore]

The K shaped Cost of Holiday Travel From Marketplace, I'm Sabri Beneshore in for David Brancaccio. The holiday travel period is upon us. AAA expects 122 million people will drive or fly somewhere to celebrate. That is far more than in pre pandemic times. Now, as for how much it will cost to travel, well, there is good news and bad news. Marketplaces Nova Sappho has has more.

[Nova Safo]

The good news is that the mode of transportation most travelers will use driving is cheaper this holiday season. That's thanks to lower gas prices. AAA says the national average is below $3 a gallon for regular unleaded. That's the first time it's been that low in four years. The bad news is that a lot of other travel costs are higher. Car rentals are up 1%. Hotel stays are up 13%. If you're flying this holiday season, you're likely paying more as well. Domestic are up 7%. That's because more people are flying and airlines have pricing advantage. Airlines for America expects demand to grow 1.5% compared to a year ago, totaling nearly 3 million passengers a day. The group says airlines have added more seats to accommodate Overall, consumers appear undeterred by higher prices. The consulting firm PwC says discretionary spending for the fourth quarter of this year is likely to be up more than 3% compared to last year. I'm Nova Safo for Marketplace.

[Sabri Beneshore]

One of the most famous names in American whiskey, Jim Beam says it's gonna stop production at its main distillery for all of 2026. The firm's been making bourbon whiskey in Kentucky for more than 200 years and says it'll take the opportunity to invest in site enhancements. The BBC's business reporter Gideon Long has more.

[Gideon Long]

The decision by Jim Beam to pause production at its main distillery comes as Kentucky's $9 billion bourbon industry grapples with a glut of whisky and a slump in demand at home. Jim Beam says bottling and warehousing in Clermont will still be operating next year and that distilling will continue at the firm's smaller Boucher Noe distillery in Boston. Kentucky whisky and spirit makers across the US Are facing higher costs more broadly as a result of retaliatory tariffs from the trade war sparked by Donald Trump. Trade tensions between the U.S. and Canada have impacted sales of alcohol, with most Canadian provinces boycotting American spirits earlier this year. For Marketplace, I'm Gideon Long from the BBC World Service.

[Wealth Enhancement Sponsor]

This Marketplace podcast is supported by Wealth Enhancement who ask do you have a blueprint for your money? Wealth Enhancement can help you build the right blueprint for investing, retirement, tax and more. With offices nationwide, there's an advisor who's ready to listen and craft a blueprint for your future. Find out [e-mail] build.

[Range Rover Sponsor]

The adage says it isn't what you say, it's how you say it. And when you lead with power, poise and performance, you're making an impact from the start. Introducing the Range Rover Sport. Designed to set an example with its assertive stance and refined drive, it blends dynamic elegance with agile precision, whether you're navigating city streets or conquering rugged terrain. Its cutting edge innovations, including a cabin air purification system and active noise cancellation, also offer unrivaled comfort control and peace of mind. Seven terrain modes Check A choice of powerful engines, including a plug in hybrid with a 48 mile range. Absolutely. Take on anything with the Range Rover Sport. Build yours today@range rover.com USSport Explore the Range Rover Sport@range rover.com USSport.

[Sabri Beneshore]

The growth of traffic at retail sites that comes from artificial intelligence so AI helping people shop is kind of insane, Adobe reports. AI traffic to retail sites is up 5 to 800% over last year, according to emarketing firm Omnisend. Eight in 10 consumers will use AI in their holiday shopping this year for everything from coming up with gift ideas and writing gift messages to planning and budgeting marketplaces. Mitchell Hartman reports.

[Mitchell Hartman]

Honestly, I'm a total Luddite when it comes to AI. I'd never used it until I had to do this story. So I logged onto ChatGPT and typed I want to find a gift for my elderly mother. She's 87, hard of hearing and can't see very well. We ran the answers through some vocalization software for you.

[Vanessa Valiente]

Tell me whether she lives alone or in care what she currently enjoys music, radio, conversation, etc.

[Mitchell Hartman]

I answered. She's in a senior living facility with caregivers. She can't read anymore, but enjoys tv, music and talking to her grandchildren. And we were off to the races.

[Vanessa Valiente]

Here are some specific ideas that tend to work well for someone in your mom's situation. Simple Music Audiobook player Recorded family voices Message player Comfort item for TV time A very soft throw blanket Perfect.

[Mitchell Hartman]

She keeps the thermostat at 80 and is still always cold chatgpt asked my budget. I said 50 bucks a tv blanket.

[Vanessa Valiente]

Under $50 is very doable and it's a good low stress choice.

[Mitchell Hartman]

Nice. The bot's looking out for my holiday shopping mental health. But when I tried to actually buy the blanket via ChatGPT, it said you.

[Vanessa Valiente]

Can'T purchase anything directly here on this chat interface. You'll need to go to Amazon.com to.

[Mitchell Hartman]

Search and buy I ran this AI shopping experience by Greg Zakwitz. He's a retail advisor at emarketing firm Omnisend, for which has surveyed consumers about AI.

[Marketplace Host]

It's a companion tool for you rather than just doing blind searching. If I go to Google, I'm going to be presented with a whole bunch of ads, probably some really bad blog posts, and AI kind of gives you that clean look.

[Mitchell Hartman]

Ultimately, ChatGPT wasn't able to actually execute my purchase, points out Vanessa Valiente, a personal stylist and shopper based in San Diego.

[Vanessa Valiente]

For AI to assist a shopper, people don't want to be playing around. They want it like, show me the items, dude. We're looking for really personalized recommendations.

[Mitchell Hartman]

There are more and more retail sites that have AI apps built in so a consumer can search, discover and purchase products without leaving, including Amazon, Walmart, Shopify, and Nordstrom.

[Vanessa Valiente]

The way AI is being used on Nordstrom, they're actually trying to get you to the product, which is what I would love and what consumers would love.

[Mitchell Hartman]

Meanwhile, Greg Zakowicz has questions about how and where AI finds the things it thinks you want to buy.

[Marketplace Host]

So right now, all the things I'm looking at pair of pajamas, cappuccino maker, it's the same retailers. It's Kohl's, it's Amazon Best Buy. Well, are you just recommending all the big brands because they have the most.

[Mitchell Hartman]

Reviews that could make it hard for smaller companies to compete for consumers attention when they shop using AI. I'm Mitchell Hartman for Marketplace.

[Sabri Beneshore]

And in New York, I'm Sabri Benishore with the Marketplace morning Report from 8pm American Public Media.

[Marina Reyes]

Hey everyone. You already listened to Marketplace podcasts, so you know that it's important to understand how economic forces shape our lives. And that feels especially important now as we're all trying to make sense of the latest headlines. I'm Marina Reyes, host of Marketplaces. This is Uncomfortable, a show that explores how money bumps up against our relationships, our choices, and the parts of life we don't always say aloud. And starting January 15th, we are back every single week. New stories, new questions, and the kind of conversations that make you feel less alone in this quickly changing economy. We're tackling questions like should I turn my hobby into a money making side hustle? How do I deal with layoff anxiety? Or what do we owe our parents financially? Don't miss an episode. Subscribe to this is Uncomfortable from Marketplace. Wherever you get your podcasts.