AAA Annual Vacation Cost survey has come out and it says vacation and travel costs will increase by 5.4 percent over last year. The increases are across the board as lodging and transportation are facing the same pressures, higher energy and labor costs. Hawaii leads the way  as the most expensive state with North Dakota and Nebraska pulling up the rear as the least expensive states to travel in. One would think the law of supply and demand are in force.

Rate increases for lodgings are mostly a result of supply and demand, especially in major markets,” said Michael Petrone, director, AAA Tourism Information Development, which oversees the popular AAA Diamond Ratings. “For both lodgings and restaurants, rising energy costs as well as salary and benefit costs are certainly having an impact.”

AAA’s survey shows that a family of two adults and two children can expect to pay an average $261 per day for food and lodging. Lodging rates will average $141 a night, up nearly 9 percent from last year. Meals will cost $120, up nearly 2 percent from 2005.

The most expensive state for vacationers remains Hawaii where the daily cost of food and lodging for a family of four will average $559 per day. Other destinations with a high average daily cost include the District of Columbia at $518; Nevada, $348; Rhode Island, $329; and New York, $329.

Travelers looking for bargains should look at these least expensive states: North Dakota and Nebraska, with an average daily cost of $191; Kansas, $193; Iowa, $196; and Oklahoma, $200. via the AAA Newsroom.