Americans are booking their summer trips this year despite inflation

0
133


Marko Klaric / EyeEm | EyeEm | Getty Images

Americans are eager to travel this summer despite inflation-strapped budgets.

“They’re booking flights, hotels, rental cars, vacation homes,” said Hopper economist Hayley Berg. “They are also exhibiting deal-seeking behavior.”

The overall price of travel is up 16% from this time in 2019, according to the NerdWallet Travel Price Index.

But that still feels like a deal, considering some recent easing in prices as inflation cools. Airfares are down 13.4% since last year, according to the latest figures from the consumer price index. Car rental prices peaked in July 2021, according to NerdWallet, and have been consistently declining. Rates in May are down 12.4% year over year.

Read more Personal Finance:
Americans’ buying power rises amid falling inflation
Why Supreme Court is still mum on Biden student loan plan
How to snag the best deals on Amazon Prime Day

Nearly 85% of American adults intend to travel this summer, according to a survey conducted by The Vacationer. Moreover, more than 60% of adults intend to travel for the July 4 weekend.

International travel is particularly popular this summer, primarily due to pent-up demand, as this is the first summer without Covid-related travel restrictions, Berg said.

‘Deal-seeking behavior’ limits inflation effect

Americans are being extra savvy with their dollars this year. More than nine in 10 adults, 92%, say they look for ways to save on travel, according to a recent NerdWallet survey of 2,000 American adults.

“What’s been challenging about inflation is there’s just not a ton of variability in your choices a day,” said NerdWallet travel expert Sally French. “You might be able to go for the organic eggs or the regular eggs.”

“With travel, people do have those options: It’s possible to travel cheaply.”

Nearly 10% of workers have traveled without telling their employers, according to a new survey.

These workers take ‘hush trips.’ Here’s how they’re hiding them from the boss

Hopper users are applying price-watching features, booking their flights when they are on sale and coming back to check the price of their trips and hotels 30% to 50% more than they did pre-pandemic, according to Berg.

“Despite that period of planning getting smaller, they’re checking prices more,” she said. “That tells us that there definitely is price sensitivity, but we’ve not seen a slowdown in demand.”

“I do think it’s the deal-seeking behavior that’s enabling a lot of this travel,” Berg added.

Two ways to stretch your travel budget

If now is not the best time money-wise for you to take the leap, here are two things to consider:

  • Vacation in late summer, early fall. For international trips, consider going in September or October, where you could save roughly half the price compared with the summer high season, said Berg. “Travel prices always decline dramatically in the fall because it’s an off-peak,” said Robert Frick, a corporate economist at Navy Federal Credit Union.

    However, if that’s not realistic for families or students for whom the academic year is starting, Berg suggests considering the end of August and flying mid-week. “You’re going to save about $50 a ticket on international flights, anywhere from $150 to $200 per ticket just by buying on those less-popular days,” she said. You can also save on hotel nightly rates if you check in on a Monday and out on a Thursday or skip that Saturday-night stay.



Source link