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What:The summer months will see a spike in travel-related spending, according to Allianz Global Assistance’s recently released Vacation Confidence Index. Although the spending increase is sig-nificant — 11 percent higher than last year — Americans will be taking fewer vacations than in 2015.
Why It Matters:Summer travel peaked last year, with 51 percent of polled travelers reporting that they were “very” or “somewhat” confident that they would be taking a vacation. Although that number has dipped slightly this year, creating a “vacation deficit,” the nearly $90 billion that is projected to be spent by the end of the season is a major vote of confidence for an industry that continues to experience growth.
Fast Facts:- An average American household that is at least “somewhat” confident that they will take a summer vacation will spend an average of $1,798, an 11 percent increase from last year’s average of $1,621.
- In total, Americans will spend $89.9 billion this summer, up from $85.5 billion last summer.
- Half of those surveyed are confident that they’ll take a summer vacation in 2016 (slightly less than last year).
- Of those surveyed, 39 percent are not confident that they will take a vacation (up three points from last year).
- A rising number of Americans say that taking an annual vacation is important to them.
- This summer will also see an increase in the “vacation deficit,” or the percent of Americans who consider a vacation to be important but may not be able to take one.
- The Vacation Confidence Index has been conducted every summer since 2010.
- The index is polled by national polling firm Ipsos Public Affairs.
- A “vacation” is defined as a leisure trip that was 100 miles or more from home and at least one week long.
What They Are Saying:“With vacation spending up, travel insurance should be near the top of the trip-planning checklist,” said Daniel Durazo, director of communications for Allianz Global Assistance USA. “The right travel insurance policy will protect a consumer's prepaid travel ex-penses when they have to cancel their trip due to certain unexpected situations such as a covered illness or injury and will provide reimbursements for things like medical emergencies, delayed travel and lost or delayed baggage."