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Travelers are shifting their holiday getaway plans to avoid busting their budgets amid high inflation, based on a latest Bankrate survey.
Forty-three percent of U.S. adults are planning to take overnight leisure trips between Thanksgiving and Latest 12 months’s; of them, 79% are adapting to rising prices for travel in various ways, based on the survey.
For instance, 26% are shortening their trips, 25% are choosing cheaper accommodations or destinations, 24% are taking fewer trips, 23% are traveling shorter distances and 23% are driving as an alternative of flying, based on the survey.
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The dynamic disproportionately impacts travelers with lower household incomes: 86% of those with lower than $50,000 of annual income are adjusting their travel plans versus 70% of those earning greater than $100,000, based on Bankrate.
“Travel costs have surged, so it is vital to plan ahead and factor these expenses into your overall holiday budget,” Ted Rossman, senior industry analyst at Bankrate, said.
“I suggest making airplane and hotel reservations sooner than in previous years, since demand will probably outpace supply,” he added. “This summer, air travel was particularly messy as consumers unleashed pent-up demand and the industry couldn’t keep pace.”
Costs for airfare, hotels and rental cars had been rising quickly through 2021 together with consumer prices within the broader U.S. economy, though retreated a bit in recent months.
Airline fares in August were up 33% versus a yr earlier and by 9.3% relative to 2019, based on the patron price index, an inflation gauge.
Meanwhile, rental automobile prices were down 6.2% versus August 2021, while hotel lodging was up 4.5% and gasoline prices increased 25.6% over the identical period. Dining out at restaurants can also be 8% dearer.
