Holiday travel is making a comeback.

The downside for Memorial Day weekend fliers, though: higher fares and packed flights.

“People seem to feel more confident about travel and the economy in general,” says Genevieve Brown, senior editor of travel website Travelocity.

Airfares booked on Travelocity for travel from May 27 to May 31 average $332 round trip (including taxes and fees) this year, up 16% from Memorial Day weekend of 2009. International fares are 21% higher this year, averaging $742 round trip. Bing Travel, another airfare search engine, reported a similar rate of increase for domestic fares, at 18%.

Few expect travel volume to return to the pre-recession levels…