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.”
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