There was a time when fear of pandemic-related restrictions kept many would-be travelers from going on a trip but, in 2023, the single biggest setback has become the cost.
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After surveying 2,419 adults across the U.S. about their upcoming travel plans, Bankrate found that 69% have at least one concern about their holiday travel.
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Many feeling pressure to spend more on holiday travel, looking for ways to cut back
Even though more than a fourth of those surveyed fear cancelations or other setbacks such as lost luggage during the journey, affordability is clearly top of mind — 31% are concerned that the trip will put a strain on the budget while a further 25% are feeling pressure to spend more than they can afford by family and friends. Respondents could select more than one answer to the questions.
To save money on the trip, 27% of travelers will be driving instead of flying while 23% are choosing hotels and other accommodations that are less expensive than what they would have opted for in the past. Another 23% said that they would cut back on one or more trips to afford the one they really want or need to take.
“Despite costs, more people expect to travel this year than in 2022, when 43% planned to take an overnight holiday trip,” writes Bankrate’s Lane Gillespie of the results. “No matter where they’re going, Americans are determined to travel this holiday season, even if their trip will be altered from their original plans.”
To finance what they do spend, respondents increasingly rely on credit — 57% plan on using a credit card to pay for at least part of their travel while 21% of that number do not expect to pay it off in full when the credit card statement comes in but rather carry the balance into coming months.
‘Look to save money by cashing in credit card rewards, frequent flyer miles’
Other ways to stretch what one can afford include the 21% who plan to cash in on credit card rewards points and 10% of mostly younger generations who plan on asking family to pay for part or all of the trip. Use of Buy Now Pay Later services such as Affirm (AFRM) – Get Free Report, Afterpay (AFTPF) – Get Free Report and Klarna has also been on the rise — this year, 8% plan to use these payment options to break their travel expenses into smaller payments,.
While this strategy can help give one more interest-free time to pay off holiday travel expenses, the single best way to save money is to bring down the total balance both by saying no to what one can’t afford and finding ways to pay for it in points and miles.
For those booking travel, Bankrate’s experts also recommend booking early rather than hoping for last-minute travel deals as those who book their holiday travel now will save on average 30%.
“To save money and find the best availability, I think it makes sense to book early,” Bankrate Senior Industry Analyst Ted Rossman said in a statement. “Look to save money by cashing in credit card rewards, frequent flyer miles and hotel points. And try to be flexible with your dates. Especially if you’re flying, going a few days before the biggest rush and/or coming back a few days later could save you a lot of money.”