Travelers heading out for the final holiday weekend of summer are paying more for flights and hotel stays, according to AAA booking data and travel expert Pauline Frommer. The Labor Day weekend, which falls on the first Monday of September in the United States, traditionally marks one of the busiest travel periods of the summer season and the unofficial end of peak summer demand.

AAA's figures show domestic airfare up 2% compared with last year, averaging $750 for a round-trip ticket. Fares to the most popular domestic destinations for the holiday weekend are running nearly 20% higher, averaging $790.

Hotel prices are climbing as well: domestic bookings are up 9% and international hotel bookings are up 12% compared with last Labor Day weekend, according to AAA.

"We are seeing prices ticking up for airfares most definitely, but also for hotels, for rental cars, for cruise ships," Pauline Frommer, publisher of Frommer's Travel Guides, told FOX Business.

Higher fuel prices tied to the war in Iran are one contributing factor, Frommer said. AAA also noted that current market trends suggest drivers could pay more for gas this Labor Day weekend than they did a year ago. Fuel is one of airlines' largest operating expenses, so swings in energy costs tend to feed into ticket prices over time.

Frommer added that airlines, hotels and other travel companies are increasingly using artificial intelligence (AI) to better predict how much customers are willing to pay. "Everyone is using this new technology to better understand or to better test what they think the customer will pay," she said. The travel industry has long relied on dynamic pricing, and AI tools have expanded companies' ability to adjust fares and rates in real time based on demand signals.

According to AAA, Seattle, Orlando, Boston, Denver and New York are the top domestic destinations for Labor Day weekend, while Rome, Vancouver, London, Dublin and Paris lead the international list.

Not every travel category is more expensive, however. AAA reported that international airfare is down 4% year over year, and cruises departing from U.S. ports are 4% cheaper, averaging $2,700 per booking.

For travelers with flexibility beyond the holiday weekend, Frommer said the most reliable way to cut costs is to travel during off-peak periods. "The best way to save money is always to travel when nobody else is," she said. "The first two weeks in December is one of the cheapest times of the year to travel almost anywhere."

She also suggested that some travelers may be able to find lower fares by clearing their cookies and using a virtual private network (VPN) to conceal their browsing history while booking online.

Frommer added that travelers can also save by choosing destinations with a lower overall cost of living. "Usually, if the cost of living is lower in the destination you're thinking of visiting, the cost of travel will be lower, too," she said.