Personal Finance News
Survey: Lingering Inflation Impacting Winter Travel Plans
A new survey suggests that a majority of travelers expect ongoing inflation to impact their winter itineraries, while other financial factors are also in the mix.
About the Survey Results:
Recently, the personal finance site WalletHub released its Winter Travel Survey. Headlining the results is the fact that 54% of respondents said inflation will affect their plans. Similarly, just over half (51%) expect that a weaker dollar will also play a role. As a result, one-quarter of those surveyed said they expect to pay more for winter travel this year versus last year.
Given this expectation, one in three respondents reported that they’d be using a budgeting app to help them prepare for their next vacation. Meanwhile, 21% said that winter travels are worth going into debt for. Additionally, 23% plan on opening a new credit card as a means of saving money on their seasonal travel.
Broadening out from travel, there are other financial considerations that consumers are contending with. For example, nearly 25% of those surveyed admitted that they’re still carrying debt from last winter. As for new expenses, 55% of respondents stated that they intend to redeem some of their credit card rewards to help them with holiday spending and expenses. Consumers were also 2.3 times more likely to redeem existing credit card rewards for this purpose rather than open a new credit card.
What They’re Saying:
Commenting on the survey results, WalletHub editor John Kiernan said, “Despite inflation and a weaker dollar affecting a majority of people’s winter travel plans, according to a new WalletHub survey, only 25% of Americans say they’re going to spend more on travel this winter than they did last year. Many people, it seems, are either going to stay home or look for ways to offset price hikes.”
He went on to note that opening a new credit card actually be a good strategy, noted that “it can save you $750+ quite quickly, and 55% of people say they’re going to redeem credit card rewards to help pay for their trips.”
Lastly, Kiernan added, “Budgeting better is a top priority for many travelers as well, and that in particular will go a long way when skipping holiday travel isn’t possible. It’s like an early holiday gift to yourself, since you don’t want to be dealing with expensive travel debt in the new year.”
My Thoughts:
Clearly, there are several factors that will impact consumers’ finances this winter. Beyond the shopping expenses usually associated with the holidays, WalletHub’s survey correctly points out that travel purchases can also be a large part of the budget. Luckily, though, as Kiernan points out, this is one spending category where credit card rewards can really come in handy.
With that in mind, while I wouldn’t recommend getting a credit card if it will land you in debt, there are several attractive welcome bonuses available that can certainly help with your holiday travel expenses. From the just-launched Citi/AAdvantage Globe Mastercard to various Capital One options, I do think it’s worth taking a look and seeing how you can leverage your winter spending and boost your travel budget.
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