Travel inflation statistics | Bank


Holidays can bring in a lot of unusual expenses, from gifts and meals to the escalating costs that come with travel. Amid inflation and rising interest, 40 percent of millennial vacation travelers say their budgets will be strained, along with 31 percent of Gen Xers, 28 percent of Gen Zers, and 23 percent of Boomers. With the costs of flights, gas, hotels, and more on the rise, no matter your age, you may be wondering how to make travel costs fit into your budget. Here’s how the travel swell can affect your vacation plans.

  • 82% of Millennium Vacation Travelers and 82% of Gen Zers change their vacation travel plans due to inflation/price hikes. (the bank)
  • 86% of vacation travelers with household incomes under $50,000 change their vacation travel plans due to inflation/price hikes. (the bank)
  • 53% of holiday travelers make a reservation by the end of October. (the bank)
  • Air ticket prices are up 43% year-over-year from September 2021. (Bureau of Labor Statistics)
  • Gasoline prices are up 18% year over year from September 2021. (Bureau of Labor Statistics)
  • However, home away from home is up 2.9% year over year from September 2021. (Bureau of Labor Statistics)

After years of reduced travel due to COVID-19 restrictions, 43 percent of US adults plan to travel between Thanksgiving and New Year’s, according to Bankrate data. However, rising travel costs are making Americans rethink their plans.

last year , Average cost for a week’s vacation For one person it was $1,558, and costs rose to $3,116 for two people. Millennials were more likely to spend less on vacation, about $4,464 on average, compared to $7,800 for baby boomers.

Now in 2022, rising US inflation is creeping upwards in most travel categories. Vacation trips are expected to be the most expensive in five years, According to travel site Hopper.

The busy holiday season hasn’t been a cheap time to fly, but prices aren’t expected to drop anytime soon. Here’s a breakdown of how Thanksgiving travel costs have risen over the past year:

travel class Thanksgiving 2021 costs Thanksgiving 2022 costs Percentage change
Domestic flight ticket (round trip) 300 dollars 350 dollars +16%
Hotels (night average) $187 $189 + 1%
Car Rentals (Average day) $80 $60 -25%

source: Hopper 2021 And the 2022 data

Travelers may see an average of $350 for a domestic flight over Thanksgiving. Also, as of mid-September, airfares for Christmas week and Hanukkah were even higher at $463 — 39 percent higher than last year, according to Huber.

travel class Winter break 2021 costs Winter vacation costs 2022 Percentage change
Domestic flight ticket (round trip) $390 $463 + 19%
Hotels (night average) $193 $218 + 13%
Car Rentals (Average day) $80 $53 -34%

source: Hopper 2021 And the 2022 data

The cost of tickets will increase as more people book flights. Airfares are expected to rise $10 a day between Halloween and Thanksgiving, and may rise to $450 just before the holiday, according to Huber. Additionally, those who book last-minute flights for Christmas may see fares as low as $580.

Even with these high prices, most travelers can still expect to go on domestic flights this fall, with popular tourist cities Las Vegas, New York and Orlando leading to local destinations, According to Tripadvisor.

It can seem difficult to try to see your family while making it work within your budget, even if you’ve been saving for it for months. However, there is a way to feel in control. Examining current prices for airfare, hotels, and other expenses can help you get an idea of ​​how much you can expect to spend this holiday season.

Understanding airfares can let you know what expenses to expect as you travel to see your family on Thanksgiving or the December holiday.

Airlines, in particular, experienced the worst increase in travel expenses due to inflation. Like the gas price hike the US saw last summer, jet fuel has become more expensive over the past year. Fuel is now 84.4 percent higher than it was a year ago, According to the International Air Transport Association.

If you choose to take a flight this holiday season, the true price of your ticket will depend on the airline, the date you purchased the tickets, and your destination. These are some of The most popular flight routes In the US and average ticket cost, as of Q2 2022:

Domestic flight path Average cost in the second quarter of 2022
New York (JFK) to Los Angeles (LAX) $451
Los Angeles (LAX) to San Francisco (SFO) $125
New York (LGA) to Chicago (ORD) 205 bucks
Los Angeles (LAX) to Chicago (ORD) 305 dollars
Atlanta (ATL) to Orlando (MCO) $174

source: US Department of Transportation

Many also wonder how to adjust their budgets so that they can eat a meal at a restaurant or watch a local scene. This year’s holiday travelers are focusing more on food and drink, but a bank survey He explains that they may reprioritize because they are worried about their budgets due to inflation.

Nearly a third (32 percent) of travelers in the Bankrate survey say their plans will put a strain on their budget, and more than one in five (22 percent) travelers said they would feel pressured to spend more than they are comfortable with. with.

Many Americans say they are changing their vacation travel plans due to inflation/price hikes by traveling for fewer days (26 percent), getting a cheaper itinerary (25 percent) or taking fewer (24 percent) or shorter trips (26 percent) in general.

Unfortunately, those hoping to wait until next year for airline prices to drop may be disappointed.

Demand for leisure travel is high, and Ted Rossman, senior industry analyst at Bankrate, says he expects it to continue into 2023, with higher prices and limited availability affecting travelers during school holidays.

“Recession fears may dampen consumer spending, especially if the unemployment rate is to rise, but I think pent-up demand remains strong and consumer spending has been surprisingly resilient,” Rossman said.

Rossman advises travelers to book their tickets early and use credit card rewards, frequent flyer miles, and hotel points to help budget your vacation.

It’s normal to worry about spending on travel during economic uncertainty, but there are ways to take advantage of discount tickets and packages, even if you don’t have a credit card with rewards points. Here are four ways to help save on travel in 2022 and 2023:

1. Book tickets strategically

  • If you plan to book airline tickets, book them as soon as possible. About 80 percent of people are booking their airline tickets for the holidays by Halloween, per hopper.
  • Bonus tip: Try to book your flight for an unusual day, such as the Monday before Thanksgiving instead of the weekend.

2. Use fare tracking apps

  • Lots of apps like Hopper, Skyscanner, Kiwi.com, and more not only help you get the best deal on a flight, but they can also help you book hotels or rent a car.
  • Bonus tip: Many apps also allow you to check when your flight costs might go up and when it’s the most expensive time to travel, allowing you to get the most competitive fares.

3. Use your credit card for deals

4. Learn how to travel hack

  • travel hack It allows you to “hack” flights and hotels, allowing you to redeem points for travel.
  • Even if you don’t want to use a credit card, you can get bonus points with shopping portals and dining rewards and take advantage of wrong fares or fares that have been priced below market value due to the fault of the airline.

minimum

If you are thinking of booking tickets for this holiday season, now is the time. Prices will only continue to rise, and your budget may be stretched further if you wait. If you think you might not be able to see your family out of state or get your dream vacation this year, maybe wait until next year as you can pre-book those tickets.

Travel costs are not fixed, and even more uncertain in the coming year. However, with a combination of travel points and tricks, as well as thoughtful planning, you can have a well-earned vacation after several tumultuous years.

Bankrate.com commissioned YouGov Plc to conduct a survey on holiday travel. All figures, unless otherwise noted, are from YouGov Plc. The total sample size was 2,455 adults, including 1,055 anticipating holiday travel and 829 requiring travel reservations. Fieldwork was conducted from 7-9 September 2022. The survey was conducted online and meets stringent quality standards. A non-probability-based sample was used using quotas up front during collection and then a back-end weighting scheme designed and proven to provide nationally representative results.


Leave a Reply

Your email address will not be published. Required fields are marked *