3 in 5 Americans say inflation is affecting their summer travel plans, survey shows
Summer is creeping up, and it means a much-needed getaway for many to a fun destination.
But with the costs of travel skyrocketing due to inflation, it’s putting a dent in some people’s plans based on a recent survey.
WalletHub, a personal finance website, conducted a summer travel credit card survey and learned that 3 in 5 Americans say inflation influences their travel plans for a summer vacation, with 55% of respondents saying they plan to spend less money this summer than last year.
But not all consumers are deterred from traveling because of finances. About 1 in 4 people believe it’s worth going into debt for a quality vacation, while 1 in 5 said they would take a vacation and skip paying their credit card bill.
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In the survey, WalletHub provided a breakdown of how Americans spend their credit card rewards with 38% of consumers saying they plan to use their credit card rewards to pay for a vacation this year.
Approximately 29% of consumers use their rewards for rental car insurance, followed by 19% using it for price protection, 18% for travel accident insurance, and 18% using it on trip delay and cancellation insurance.
And it’s no secret that when planning a vacation, most of us budget and delay gratification to have money available for a trip.
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According to the survey, 38% of consumers said they would stop eating out for a year to earn a free vacation.
Consumer prices in the United States rose again in April, and measures of underlying inflation stayed high, a sign that further declines in inflation are likely to be slow and bumpy.
A government report on May 10 on consumer prices in April showed that inflation fell to 4.9%, the lowest year-over-year level in two years, the Associated Press reported.
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Even with price pressures rising in April, the latest data from the Bureau of Labor and Statistics did provide some evidence of cooling inflation. Grocery prices fell for a second straight month, and the cost of services, including airline fares and hotel rooms, plunged.
The Associated Press contributed to this report. This story was reported from Washington, D.C.