High inflation is pushing many Americans to fine-tune their vacation travel plans


D3sign | time | Getty Images

Travelers are changing their vacation getaway plans to avoid breaking their budget amid high inflation, according to a new Bankrate survey.

Forty-three percent of American adults plan to take overnight pleasure trips between Thanksgiving and New Years; of them, 79% are adjusting to rising travel prices in various ways, according to the survey.

For example, 26% shorten their journeys, 25% choose cheaper accommodation or destinations, 24% take fewer journeys, 23% travel shorter distances and 23% take the car rather than the plane, according to the survey. .

Learn more about personal finance:
The labor market is cooling but workers still have power
This is the best time to apply for college financial aid
GOP Challenges to Biden’s Student Loan Cancellation Plan Jeopardizes Debt Relief

The dynamics disproportionately impact travelers with low household incomes: 86% of those with annual incomes below $50,000 adjust their travel plans compared to 70% of those earning more than $100,000, according to Bankrate.

“Travel costs have increased, so it’s important to plan ahead and factor these expenses into your overall vacation budget,” said Ted Rossman, senior industry analyst at Bankrate.

“I suggest making air and hotel reservations earlier than in previous years as demand will likely outstrip supply,” he added. “This summer, air travel was particularly messy as consumers sparked pent-up demand and the industry couldn’t keep pace.”

Airfare, hotel and rental car costs have risen rapidly through 2021, along with consumer prices across the U.S. economy, although they have eased slightly in recent months .

Air fares in August were up 33% from a year earlier and 9.3% from 2019, according to the Consumer Price Index, a gauge of inflation.

Meanwhile, rental car prices fell 6.2% from August 2021, while hotel rooms rose 4.5% and gasoline prices rose 25.6%. % over the same period. Dining out is also 8% more expensive.


cnbc Business

Not all news on the site expresses the point of view of the site, but we transmit this news automatically and translate it through programmatic technology on the site and not from a human editor.
Back to top button