According to a recent Bankrate survey, the majority of Americans (63 percent) are likely to take at least one vacation this summer, despite the fact that the vast majority (80 percent) are changing their plans owing to inflation. The most typical changes are:
- choosing less expensive lodgings and/or places (29 percent, up from 22 percent the previous year)
- Cheaper activities are being used (28 percent, up from 23 percent last year)
- fewer days spent on the road (up from 19% last year to 26%)
- reducing travel (increased from 25% last year to 26% this year)
- Driving instead of flying to their destination (increased from 16% last year, to 26%)
The fact that more individuals are traveling and that adaptations are also increasing intrigues me greatly. It demonstrates that there is still room for the pandemic-era demand to build up. However, consumers are being sensible with their spending. Even if it requires making some sacrifices, they still want to get someplace.
Due to the easing of COVID-19 fears and restrictions, travel, particularly aviation travel, significantly increased over the last summer. The Transportation Security Administration screened 17% more airline passengers from Memorial Day weekend through Labour Day weekend in 2018 than it did during the same time period in 2021. After dealing with COVID protocols for more than two years, many customers couldn’t wait to leave, despite the expensive prices.
The strain caused the travel sector to splinter
According to our research, nearly eight out of every ten travelers will encounter at least one travel-related issue in 2022, with excessive costs, protracted lines, subpar customer service, and difficult availability taking the lead. According to the Department of Transportation, 42% more flights were canceled in 2022 compared to 2019. Airlines found it difficult to keep up, despite the fact that passenger volume was down roughly 10% from the previous year.
Now that it has surpassed 2019 levels, the tourism sector is preparing for much more difficulty. In the words of Axios, “Flying is shaping up to be an absolute nightmare this summer.” Airlines and other travel service providers (including hotels and rental car agencies) are still experiencing staffing and equipment shortages after drastically cutting back during the pandemic. They are still catching up since the spike in demand has overwhelmed them.
Interestingly enough, consumers appear to be experiencing the consequences of inflation more strongly this year than they did last spring and summer. This is partially due to the fact that today’s results are rising from a higher base. According to the Bureau of Labour Statistics, airfares, for instance, increased by 24 percent between March 2021 and March 2022 and then by an additional 18 percent between March 2022 and March 2023. Hotel prices grew by 29% and 8%, respectively.
Month after month of rising costs on almost everything, along with the Federal Reserve’s implementation of higher interest rates to combat inflation, have an overall cumulative effect. Since we started tracking rates in 1985, 2022 saw the biggest increase in the average credit card rate. It is at a record-high 20.23 percent right now.
However, it’s crucial to make use of your time off
I’m not trying to be negative. Paid time off is a lovely benefit, and it’s crucial to use it to unwind, refuel, and spend quality time with loved ones. Travel costs, delays, and cancellations are a few factors that are beyond our control. I was saddened to learn that just 33% of Americans who received paid vacation time intended to spend the entire amount last year, and 30% believed they would only use about half of it.
Plan a staycation and explore your neighborhood if nothing else. According to our most recent survey, 28% of likely summer visitors will do this. However, there’s a good chance you can travel for less money than you anticipate.
Tips for traveling cheaply
Take advantage of whatever rewards point or miles you have acquired first. According to our sister site CreditCards.com, around one in four people who had rewards credit cards didn’t use any of their points or miles in 2017. Additionally, $175 worth of unused gift cards are held by roughly half of American adults. This represents a big missed opportunity. Due to inflation as well as the fact that people occasionally let rewards and gift cards expire, forget about them, or (in the case of gift cards) lose them, unused rewards and gift cards eventually lose value.
Another piece of advice is to let the transaction decide where you go. So frequently, the opposite is done. They get fixated on a certain location at a particular time, which significantly reduces their capacity to save. Let’s imagine you wish to visit a beach this summer (the top vacation spot according to the survey we conducted). If you don’t particularly care which beach town or city you visit, you can do some research and choose a location that seems nice and may provide less expensive flights, lodging, activities, and so on.
Generally speaking, it is best to be more adaptable. Are you able to go during less expensive times, for instance? Traveling on a Wednesday and returning on a Wednesday can be less expensive than leaving on a Saturday and returning on a Saturday or Sunday because flights and accommodations are frequently less expensive during the week. In addition, despite having the same number of nights, a hotel stay from Monday to Friday is frequently less expensive than one from Wednesday to Sunday. Always get a deal by traveling during a place’s off- or shoulder season. Additionally, international travel is currently more affordable due to the strong dollar.
The conclusion
You still have time to organize a fantastic summer vacation. There can be sun fun on any budget with enough forethought and imagination.