Many Americans said they would adjust their travel plans if prices got too high. But many of them took vacation this summer anyway.
Almost half (47%) of travelers surveyed by travel insurance company SquareMath said an increase in costs of 25% or less would be enough to change their plans. More than 6,200 customers responded to survey questions conducted from June 4 to July 7 with a margin of error of plus or minus 1.2 percentage points.
But despite rising airfares, hotel costs and gas prices, 55% of U.S. summer travelers remained unchanged with their plans, and only 3% canceled their trip entirely, SquareMass found. A small number of travelers stayed closer to home, chose cheaper destinations, or shortened their trips.
“People aren’t ignoring the cost pressures we’ve seen this year, it’s just that more people are budgeting for travel rather than giving up on it,” said Jackie Mondelli, chief marketing officer at Squaremas. “Travelers are more likely to tailor their trip to fit their budget rather than skipping it entirely.”
Or adjust your budget to accommodate travel, even as travel and grocery costs continue to rise. Data shows that when it comes to discretionary spending, travel is often prioritized over regular “fun” spending like eating out or non-essential shopping. More than half of travelers surveyed by SquareMass in a separate survey said they were shopping less in other areas, with 19% cutting back on retail shopping and 13% cutting back on restaurant visits. This question has 2,023 answers, and the results have a margin of error of plus or minus 2.2 percentage points.
“Many people think of travel not just as a vacation, but as part of their identity and an experience that aligns with their values, such as connection, adventure, and rest,” says Lindsey Brian Podvin, financial therapist and founder of Mind Money Balance. “Then you’ll need to adjust your spending plan. If travel is non-negotiable, what other areas can you adjust?”
Would you like to travel now and still save money?
Additionally, approximately 13% of travelers say they have cut back on their savings or investments to plan a trip, Squaremouth found. This can be an annoying behavior for some people who should realistically prioritize building an emergency savings fund or paying down debt over going on vacation. But choosing to travel instead may be due to “temporary discounting,” a psychological term that prioritizes current comfort over future rewards, says Brian Podvin.
“That’s why we snoozed the alarm for that new workout class we signed up for. A comfortable bed feels better than the strength and mobility you’ll gain in three to six months,” she says. “Even if costs were higher[this summer]consumers prioritized the comfort of going on vacation now over the comfort of saving money to cover everyday expenses like gas and groceries in the fall and winter.”
According to a survey by car rental company Hertz, about 46% of Americans say they are planning a trip this fall. The poll surveyed 2,001 U.S. adults in August and asked them about their fall travel plans, with a margin of error of plus or minus 2.2 percentage points. This is despite the ongoing war with Iran and fuel prices continuing to rise. Mondelli said some travelers are simply looking forward to traveling in the fall to avoid the summer heat waves.
Fall, or the “shoulder season” known as the period between peak tourism months, has historically been a more affordable time to travel to many destinations than the summer or winter vacation seasons. However, the increased demand for travel and global conflicts during this period added price pressures that eroded many of these savings.
Domestic flight and room prices for major U.S. destinations this fall are on average 2% and 20% higher, respectively, compared to summer, according to travel agency Expedia. According to travel app Hopper, travelers can still find fall discounts at international destinations, but the discounts are generally smaller than in previous years.
