Pent-up travel demand responds to inflation. Here’s what a new survey has found about how travelers plan to cope with higher prices.
Mary Ann Ha
Nearly seven in 10 American adults are changing their summer vacation plans due to high levels of inflation, according to a recent Bankrate survey. Taking fewer trips and going to closer places are the biggest changes predicted, each recording 25% of responses. Twenty-three percent of respondents said they would look for cheaper activities and 22 percent said they would adapt by selecting cheaper accommodations or destinations.
Bank Rate Survey Results
Amid rising travel prices, the ‘staycation’ trend is growing, with 28% of those traveling this summer planning a vacation in their home country or within the confines of their residence. Besides the high interest in staycations, the most common holiday destinations are beaches at 37% and cities at 27%. National parks, campgrounds and amusement parks all followed close behind, in that order. The least popular travel options reported were, unsurprisingly, international travel at 12% and cruises at 11%.
Aside from those considering making changes to their summer travel plans, many have refrained from thinking about going on vacation. The most common reason cited by those who cancel their summer plans is that they can’t afford it – a solid 48% of respondents. Among the different generations, Generation X stood out, with 58% citing high prices as the biggest barrier to summer travel.
After cost worries, 27% of respondents said they were simply not interested in holidays at the moment, and 20% indicated that Covid was their main reason for staying away from summer trips. summer. Health or age-related complications, family obligations and vacation plans for another time were all on the list before not being able to miss work at 10%.
While paid time off is a benefit most employees are entitled to, only 33% of American workers said they plan to use all that time in 2022, down seven percentage points from pre-pandemic figures, according to a March 2019 report. Bank Rate Survey. Only 18% plan to use around half of their vacation and 30% said they would use less than half of their paid leave.
Despite these figures, experts are still confident in the unwavering persistence of travel demand this summer.
“I suspect pent-up demand will outweigh higher prices,” said Ted Rossman, senior industry analyst at Bankrate. “Americans have been spending aggressively despite high inflation and gloomy consumer sentiment statistics. After being locked down for a few years due to Covid, I think people are ready to come back this summer, even if it means paying higher prices and potentially cutting their savings or going into debt.
There has been a shift from spending on goods to spending on services, Rossman said. Airlines, hotels, bars and restaurants are all in high demand for reporting, reflected by recent reports of an influx in booking rates seen by travel booking sites.