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According to a new Bankrate survey, travelers are changing their vacation getaway plans to avoid breaking their budgets amid high inflation.
Forty-three percent of American adults plan to take overnight leisure trips between Thanksgiving and New Year’s; of these, 79% are adapting to rising travel prices in various ways, according to the survey.
For example, 26% are shortening their trips, 25% are selecting cheaper accommodation or destinations, 24% are traveling less, 23% are traveling shorter distances and 23% are driving place to fly, according to the survey.
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The dynamic disproportionately affects travelers with lower household incomes: 86% of those with less than $50,000 in annual income are adjusting their travel plans compared to 70% of those making more than $100,000, according to Bankrate.
“Travel costs have increased, so it’s important to plan ahead and factor these expenses into your overall vacation budget,” said Ted Rossman, senior industry analyst at Bankrate.
“I suggest making plane and hotel reservations earlier than in previous years, as demand will likely exceed supply,” he added. “This summer, air travel was particularly messy as consumers released pent-up demand and the industry couldn’t keep up.”
Airfare, hotel and rental car costs rose sharply through 2021 along with consumer prices in the US economy, although they have pulled back a bit in recent months.
Air fares in August rose 33% from a year earlier and 9.3% from 2019, according to the consumer price index, a measure of inflation.
Meanwhile, rental car prices fell by 6.2% compared to August 2021, while hotel accommodation rose by 4.5% and petrol prices rose by 25.6% over the same period. Dining in restaurants is also 8% more expensive.
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