Survey: 72% Say Rising Prices Have Affected Their Summer Plans

As the price of nearly everything continues to increase, Americans are feeling the strain when planning their summer vacations.

A late May survey from U.S. News found that 72% of Americans have altered their summer travel plans in some way to deal with rising prices. What’s more, 20% acknowledge that they will go into debt to pay for their trips this summer.

Domestic vs. International Travel

The majority of Americans plan to take one to two domestic trips this summer — about 64% — while 29% plan to take three or more. When it comes to international trips, 41% plan on vacationing outside the U.S. Roughly 22% intend on making one trip while about 19% plan to take two or more international trips.

However, considering today’s charged political climate, about 47% of Americans are worried how they’ll be received when traveling abroad.

In addition, when respondents were asked if the political climate caused them to alter their summer plans in some way, almost half said yes.

Fear of Flying

With plane crashes and near misses dotting the headlines this year, it can feel like air travel isn’t as safe anymore. As recently as last week, there was another plane crash that killed over 200 people when an Air India plane bound for London crashed just minutes after takeoff.

Before the fatal mid-air collision over the Potomac River in January — which killed 67 people — the most recent fatal commercial airline crash in the U.S. had been in 2009. And Americans are worried.

More Americans plan on driving this summer than flying when reaching their travel destinations. About 53% say they’ll travel by car while 39% say by air. And when asked whether they were more nervous about traveling by air this year than they were last year, 47% say yes.

[Read: Best Credit Cards.]

How Americans Plan to Pay for Summer Travel

The majority of Americans plan to use their savings or pay directly out of pocket for their summer travel. But a combined 20% say they know they’ll go into debt to fund their vacations.

Compared with 2023’s survey results, the number of consumers willing to go into debt for their summer vacations increased by almost 4 percentage points in two years. While the increase has thankfully stayed low, it’s still an increase all the same.

When asked why they were willing to go into debt for traveling, responses varied. The majority of Americans — 53% — say they don’t mind going into debt if it’s for a new experience. Personal growth was a close second at 37%. It seems many Americans are still eager for their “Eat, Pray, Love” journey.

Respondents are almost equally divided on how much they’ll spend per person on their next trip. Only 30% plan to spend over $2,000 per person. Here’s a breakdown of the responses:

— $500 or less: 23.7%

— $501-$1,000: 25.4%

— $1,001-$2,000: 21%

— $2,001-$3,000: 15.2%

— $3,0001-$4,000: 5.1%

— $4,001-$5,000: 4.6%

— Over $5,000: 5.1%

When compared with 2023 findings, the percentage of Americans planning to keep their spending under $2,000 has remained consistent at about 71%.

Rising prices have more than likely aided to keep this percentage consistent. A combined 72% say they’re adjusting their summer travel plans in some way. In 2023, when respondents were asked a similar question, 22% said they weren’t changing their plans in any way. So that number has jumped 7 percentage points in two years, indicating that Americans continue to worry about rising prices.

[Read: Best Travel Rewards Credit Cards.]

Using Credit Cards for Travel

Only 12% of respondents say they plan to pay for their summer travel with credit card rewards. Considering 40% of Americans don’t have a general travel rewards card or a co-branded airline credit card or hotel credit card, that’s not necessarily surprising.

Respondents who don’t have a travel credit card of any kind cite that they don’t travel enough for the card to be worth it (47%) or they don’t want to pay an annual fee (39%).

[Read: Best Hotel Credit Cards.]

In 2023, respondents were asked how much they’d be willing to pay for a credit card annual fee. About 31% said they were willing to pay up to $99, and only 16% said they’d go up to $199.

This year, the percentages are a little more varied, but the majority of Americans are still averse to paying a high annual fee, if one at all.

It’s worth noting there are travel cards with no annual fee, so you can still snag some of those perks you’re after without paying a fee.

Make Your Credit Cards Work for You

When asked what type of credit card they plan to use for their travel, the largest group of Americans say they’d rely on a cash back credit card.

Now, cash back rewards are great. But they shouldn’t be the first card you reach for when planning travel. If you use a travel credit card — whose main way of earning rewards is points or miles — then you can eventually use those rewards to pay for a trip a lot faster than you would with cash back.

Many travel cards have travel partners, which means you can transfer your miles or points to a frequent flyer program, potentially earning more. The same goes for hotels. Over 31% of consumers don’t know they can consolidate their points in one place.

Plus, of the roughly 70% of consumers who know about transfer partners, only 56% have actually used this feature. Consumers can end up leaving money on the table if they rely solely on cash back.

More from U.S. News

Survey: Nearly 79% Say Inflation Has Affected Summer Travel Plans

Dear Clever Credit: I Travel a Lot for Work. What Credit Card Should I Use?

Clever Credit: I Don’t Earn Enough Rewards When I Travel. What Should I Do?

Survey: 72% Say Rising Prices Have Affected Their Summer Plans originally appeared on usnews.com

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