New research from CardRates, which surveyed more than 900 Americans, found that nearly 40% of Americans are traveling less this year, with the majority (88%) blaming cost.
Almost half of those people traveling less (44%) are not traveling at all because of cost, while a third of respondents are postponing a trip for at least six months due to finances. More than half of respondents (65%) say that traveling is a luxury these days.
Why It Matters: Even Affluent Travelers Are Feeling More Wary of Travel Costs
Many travel advisors are starting to see that Americans are traveling less because of financial concerns, but that they are also prioritizing travel despite the effect it may have on finances.
One-third of respondents said they prioritize travel experiences over financial stability, with 17% of respondents saying they are taking a vacation even if they cannot afford it.
While more affluent clients are keeping the industry afloat, even a quarter of higher-income households (those that bring in more than $200,000 a year) are cutting back on travel, according to the survey. And the majority of Americans (65%) say that luxury travel costs more than it used to.
Travel may be a luxury for a large percentage of Americans, but clearly it’s a category that many are eager to splurge on.
Now is the time for advisors to show their value, and help clients take more affordable trips, whether that be by suggesting a “destination dupe” or promoting off-season travel. Advisors should also realize that clients are making more sacrifices to afford their trips, so making trips extra seamless and special will go a long way.
Fast Facts: Americans Are Getting Creative to Afford Travel — or They’re Willing to Go into Debt
- Fifteen percent of respondents are incurring an average debt of $2,300 to travel.
- Thirteen percent canceled a trip they already booked due to cost.
- To continue traveling, a quarter of respondents (23%) say they lowered their travel budget per trip.
- Thirty-seven percent are saving for trips two to six months in advance.
- Eighteen percent are using credit card points to pay for their flights.
- For Americans at the lowest income level ($20,000 - $40,000), more than half (56%) are not traveling at all.
What They’re Saying: Travel Is a Splurge and Should be Enjoyable
“Travel may be a luxury for a large percentage of Americans, but clearly it’s a category that many are eager to splurge on,” said Erica Sandberg, financial expert for CardsRate. “And for a good reason: People work very hard for their money, and enjoying it is essential.”
