I think it's just norml almost all btc wallet raise transaction fees together with pump of bitcoins but it really disturbing issue.
It's now normal for all wallets to have higher fees since the price is increasing so it is also affected. But before xapo is charging high fees even there's no congestion or any problem regarding the transactions. I don't use them anymore but one sure thing that they still charge higher fees now.
Yes, their charges are quite high compared to other online wallets even now. The sad part is they will give you just two options but you can't customize those options. Even after paying such a high fee you may need to wait for long to get your transactions confirmation. Overall if you're looking for only a wallet then it is better to avoid XAPO and use any desktop or blockchain wallet.