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This summer’s travel trends: Shorter, cheaper trips and more driving — unless
you’re rich

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Travel


THIS SUMMER’S TRAVEL TRENDS: SHORTER, CHEAPER TRIPS AND MORE DRIVING — UNLESS
YOU’RE RICH

The U.S. pandemic emergency is officially over and travel restrictions have been
lifted, but inflation is still crimping most vacationers’ plans even as
wealthier Americans splurge.

To save money, 26% of U.S. travelers plan to drive rather than fly this summer,
up from 16% last year, a recent Bankrate survey found.Justine Goode / NBC News /
Getty Images
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May 14, 2023, 12:00 PM UTC
By Harriet Baskas

If you sat out last summer’s overcrowded, overpriced, booked-solid travel season
in hope of cheaper and easier getaways this year, you may be out of luck.

Sixty-three percent of U.S. adults plan to travel this summer, up from 61% this
time last year, according to a recent survey by Bankrate, a consumer-finance
data provider. Airlines are bracing for high demand, and aviation authorities
are warning of another season of flight disruptions.




The expectations come as inflation eased to 4.9% in April after having peaked at
9.1% last June and as the Biden administration’s ending of the pandemic
emergency officially concludes the era of Covid-related travel restrictions,
which have largely evaporated anyhow.

Clients are just willing to pay whatever it costs to do what they have been
waiting to do for three years.

— Sandy Staples, owner of Artistico Travel

This summer, wealthier people increasingly plan to shell out for trips while
lower earners pull back, industry analysts and travel experts say.

“Clients are just willing to pay whatever it costs to do what they have been
waiting to do for three years,” said Sandy Staples, owner of the luxury travel
agency Artistico Travel in Granite Bay, California.

“We have clients doing a massive cruise,” she said, “and the round-trip business
class airfare to Iceland was over $11,000 per person. They paid it.”

Passengers check in at Chicago’s O’Hare International Airport in January. Scott
Olson / Getty Images

Among households earning over $100,000 annually, 81% are likely to take summer
vacations, Bankrate found, up from 75% last year. At the other end of the
spectrum, just 54% of households making under $50,000 said the same, down from
56% a year ago.



Many travel costs are still rising faster than headline inflation, said Sally
French, a travel expert at the personal finance company NerdWallet. “Because
inflation is already high as is, this summer is set to be rough for people
seeking to travel affordably,” she said.

But rather than shelve summer getaway plans entirely, 80% of travelers told
Bankrate that they’re looking for ways to economize.



While airline ticket prices have fallen by just 0.9% from a year ago, gasoline
prices have plunged by more than 12%, inflation figures show. The airfare
tracker Hopper predicts domestic round-trip costs to climb as high as $328 by
June — $72 shy of last summer’s record peak but still 4% higher than
pre-pandemic. So travelers like Terri Johnson, of Ocala, Florida, are choosing
road trips over flying.



“I’m going to a wedding in Fayetteville, North Carolina, and then to Raleigh to
visit cousins I’ve never met” after having found them on an ancestry platform,
Johnson said.

“Flying costs more with multiple destinations, so I’m driving,” she said, adding
that she’s limiting her hotel stays and taking her own vehicle to avoid high
rental car prices.

She’ll have plenty of company on the roads.

To save money, 26% of vacationers plan to drive rather than fly to their
destinations this summer, up from 16% last year, according to Bankrate. The
national average price for a gallon of regular gas is $3.54, down from $4.42 a
year ago, AAA data shows, and rental car prices fell by more than 11% last month
from the year before.



Bankrate also found that 29% of summer travelers will be choosing cheaper
accommodations or destinations, a bigger share than 22% last year. And 26% — up
from 19% — will be traveling fewer days.

A security checkpoint at Newark Liberty International Airport in New Jersey in
January. Aristide Economopoulos / Getty Images

“We’re taking every opportunity to get away from home but making adjustments for
inflation,” said Michael Huntsberger, of McMinnville, Oregon. For this summer’s
getaways, his family trimmed two days off a planned trip to California wine
country, and they decided to vacation in eastern Canada because it was more
affordable than New England.

“We couldn’t find a hotel for less than $450 in Portland, Maine, and the cost of
traveling from there to Montreal was prohibitive,” he said, “so Ottawa, here we
come!”


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More travelers are also turning to loyalty points and rewards programs to help
cut costs, with 34% doing so this year, up from 28% last July, according to
research Morning Consult released in March.



Cashing in travel points rather than stashing them away not only frees up money
for other expenses, but it can also be a good inflation-fighting tactic, said
French of NerdWallet.

“Just like inflation, points inflation is real,” she said. “Airlines and hotels
regularly raise the number of points or miles [required] to book travel,” which
means rewards can lose value if you sit on them too long.


BIDEN PUSHES FOR AIRLINES TO REFUND FLIERS FOR DELAYS AND CANCELLATIONS

May 8, 202303:09


An overwhelming 85% of travelers told NerdWallet that they plan to put the costs
of their summer trips on credit cards, and nearly three-quarters of them said
they’ll pay off those charges as soon as a billing statement arrives to avoid
interest fees.

But, thanks to rising rates, the remaining 26% who said they expect to carry
travel-related balances could end up paying a lot more for their trips than
they’d planned.



The Federal Reserve’s recent quarter-point interest-rate hike “won’t move the
needle much” on credit card rates, said Ted Rossman, a senior industry analyst
for Bankrate, but after 10 consecutive increases, “the cumulative effect is
significant,” he said. 

I still make travel a priority and don’t mind using a little more of my savings
to maintain the level of experiences.

— Marcy Schackne, Hollywood, Florida

“The typical credit card holder should soon see a rate that’s 5 percentage
points higher than it was in early 2022,” Rossman said. “That makes a big
difference if you’re carrying debt from month to month, especially if you’re
only making minimum payments.”

While 55% of American travelers told the industry research firm Destinations
Analysts in March that travel would be a high priority in their spending over
the next three months, that was 6 percentage points lower than those who said
the same last spring. The group also found a nearly 8-point drop in travelers
saying it’s a good time to take a trip, to just 30%.

Some travelers are taking the expenses in stride.



“It’s more of a mental adjustment that everything will cost more,” said Marcy
Schackne, of Hollywood, Florida. “I still make travel a priority and don’t mind
using a little more of my savings to maintain the level of experiences.”



While Morning Consult found wealthier consumers were more likely than others to
ditch their travel plans, Staples said she’s seeing lots of demand: “Summer
travel requests have been coming in to the point that my team and I have had to
make the decision to not take any additional requests.”

“We are definitely seeing the continuation of the ‘revenge travel’
post-pandemic,” she said.

Harriet Baskas

Harriet Baskas is an NBC News contributor who writes about travel and the arts.



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