Holiday Travel Plans Affected by Inflation
Tis the season of festive events punctuated by some great little life moments with friends and family. However, as the holidays approach, inflation is significantly impacting how people celebrate.
While more U.S. adults are planning to travel this holiday season than last year, inflation is affecting many holiday travelers’ plans. In a recent holiday travel report by Bankrate, the majority (77%) of U.S. adults who plan to travel for the holidays, including Thanksgiving, Christmas, Hanukkah, and New Year’s, indicate they are modifying their plans due to high inflation and rising prices. Moreover, many travelers (31%) express concern about the strain their holiday travel plans will place on their budget.
For instance, gasoline prices rose by 2.1% after a notable increase of 10.6% in August, while food prices climbed by 0.2% for a third consecutive month, according to Reuters.
Travelers Adjust Plans to Save Money
Consequently, travelers are shifting their travel preferences: 27% are exchanging flying for driving, 23% are taking fewer trips, and another 23% are opting for less expensive accommodations or destinations. Additionally, 25% of participants are concerned they will feel pressured to overspend, while 16% worry about accumulating debt to finance their holiday travel.
Inflation Impacts Younger Travelers More Significantly
The report highlights that inflation and other financial concerns have a greater impact on younger holiday travelers and those with lower incomes. Among holiday travelers, 86% of Gen Zers (ages 18-26), 80% of millennials (ages 27-42), 77% of Gen Xers (ages 43-58), and 68% of baby boomers (ages 59-77) report they are changing their plans due to inflation. Moreover, 86% of households with incomes less than $50,000 are altering travel plans due to inflation and rising prices.
“This should be the busiest holiday travel season in at least four years, and we might even top 2019,” said Bankrate Senior Industry Analyst Ted Rossman. “There continues to be tremendous demand for travel and other experiences as we put the pandemic behind us.”
Survey Methodology
The survey, conducted by Bankrate in collaboration with YouGov Plc from September 12-14, 2023, included 2,419 U.S. adults, with 1,205 anticipating travel for the holidays.
