Holiday travel plans impacted by inflation for most people, survey reveals

Holiday travel plans impacted by inflation for most people, survey reveals
But most people will take on extra debt to pay for their travel.
OCT 22, 2024

Inflation continues to have a negative impact on American consumers and with the holiday season approaching, most are making changes to travel plans due to costs.

Of those planning air travel or hotel/short-term rental stay, 83% said they are making changes including around one third who are cutting their trip short by a few days, three in ten choosing cheaper accommodation or destinations, and a quarter switching to cheaper activities.

The Bankrate.com survey also reveals that even those with six-figure incomes cite inflation as the reason for altering plans with 77% of those with a household income of $100K or more doing so compared with 86% for those with incomes below $100K.

Costs soon add up with the average flights for Thanksgiving expected to cost $925, rising to $1,165 for the December holidays, and hotel/short-term rentals costing between $854 and $950. The survey estimates that flights and accommodation for both periods would cost almost $4,000 per person.

And debt is set to rise with credit cards the most popular form of payment for holiday travels (59%) followed by debit cards, cash, and reward points. More than 1 in 4 holiday travelers (29%) expect to take on debt to fund their travels this season. This includes 22% who plan to carry a credit card balance, and 10% who plan to use buy now, pay later services (adjusted for overlap).

Younger Americans are tightening their belts more than older generations with 86% of Millennials, 84% of Gen Zs, and 83% of Gen Xers changing plans versus 72% of Baby Boomers.

“Although inflation has come down significantly, it continues to strain holiday travelers in a big way,” said Bankrate Senior Industry Analyst Ted Rossman. “The cumulative effect is the problem. Multiple years of paying more for everything from housing to food, gas and discretionary items has eroded savings and increased debt. And prices are still rising, they’re just rising more slowly.”

Latest News

Record growth: Interval funds emerge as key players in alternative investments
Record growth: Interval funds emerge as key players in alternative investments

Blue Vault Alts Summit highlights the role of liquidity-focused funds in reshaping advisor strategies

SignatureFD welcomes M&A veteran Peter Nesvold to board
SignatureFD welcomes M&A veteran Peter Nesvold to board

The $9.1 billion RIA is tapping into Nesvold's decades of leadership, including his time at Silver Lane Advisors and Bear Stearns, for its next leg of thoughtful expansion.

For two-fifths of modern couples, commitment is spelled with joint insurance
For two-fifths of modern couples, commitment is spelled with joint insurance

Survey of renting couples finds joint policies on par with traditional milestones, including moving in together and their first "I love you," as a means to cement relationships.

How pro bono planning creates a practice management edge
How pro bono planning creates a practice management edge

Finding purpose, skills enhancement, and attracting new talent are just a few potential benefits for altruistic planners and the firms that support them.

SEC moves to keep ESG shareholder resolutions off proxy ballots
SEC moves to keep ESG shareholder resolutions off proxy ballots

The agency is reverting to a Trump-era policy that allowed public companies to widely exclude environmentally and socially themed resolutions.

SPONSORED Record growth: Interval funds emerge as key players in alternative investments

Blue Vault Alts Summit highlights the role of liquidity-focused funds in reshaping advisor strategies

SPONSORED Taylor Matthews on what's behind Farther's rapid growth

From 'no clients' to reshaping wealth management, Farther blends tech and trust to deliver family-office experience at scale.