Vacation inflation: Many are adjusting plans to deal with higher costs
Jun. 10—TUPELO — Summer travel season is here, and trips to the beach, theme parks, mountains and everywhere between are in the works for millions of Americans.
According to a recent NerdWallet survey, nearly 109 million — about 42% of Americans — are planning some kind of trip this summer that involves a flight or hotel stay, and they'll spend on average about $3,293. That cumulative spending comes to $358 billion on summer travel expenses alone.
But with inflation playing a large role in budgeting, the survey also revealed that nearly all travelers this summer — 92% — are trying to save money on those travel expenses, such as choosing a hotel/motel/resort based on price instead of amenities (39%) or driving instead of flying (35%).
"Given increases in demand and ongoing staffing shortages, most travel costs are rising higher than the overall inflation rate," says NerdWallet travel expert Sally French. "Because inflation is already high as-is, this summer is set to be rough for people seeking to travel affordably."
Tammy Bullock-Rutherford of Baldwyn has already planned ahead.
"I have already been on one trip to Savannah, and we decided to drive because airfare was ridiculous," she said. "It was a long drive, and I had rather flown, but I'm not going to miss a trip. We are beach bound soon and driving as well. Later in the year I will be headed to Asheville to go to the Biltmore Estate, and when we checked airfare, it was $600-plus so that will be a driving trip as well.
Bullock-Rutherford said when she eventually does decide to fly somewhere, she'll be looking for the cheapest airfare.
"Airline frills do not matter to me," she said. "Just get me there."
Jeff Lambert of GlobalTravel Services in Tupelo said most of his clients are forging ahead with their vacation plans as well.
"I was talking to someone the other day who asked when the prices might come down, and I told them I don't foresee anytime soon because everything is staying filled and sold out," he said. "The demand is there."
According to the NerdWallet survey, of those who don't plan to take a vacation that requires a flight/hotel this summer, 23% said inflation made taking a trip too expensive. And 16% of non-summer travelers say they aren't taking a summer vacation this year because inflation has made other expenses too much for them to afford to take a trip.
While gas prices remain high, flying is even more expensive.
According to a report by The Points Guy, the Airlines Reporting Corporation, a travel intelligence company and ticket processor, said the average price of fares for the Top 10 summer travel destinations this year was 9% to 37% higher than in 2022, according to ARC's data. And average fares for each destination compared to 2019 climbing between 23% and 54%.
It's no wonder the airline industry is expected to take in nearly $10 billion in profits this year despite the economic uncertainty. But the industry did lose $183 billion from 2020-2022 because of the pandemic. Still, demand has skyrocketed this year, and with fewer planes and flights, airlines are able to charge higher prices.
But determined travelers will forgo the flights and choose alternatives, the most obvious being hitting the road.
"We might be driving with my brother, sister-in-law and nephew to babysit my niece's kids out west while the niece and her husband pack to move cross-country," said Brian Hargett of Tupelo. "It's cheaper to drive and rent a house than to fly out west."
Lambert said the most popular destination spots for local travelers looking to go outside the states are the Dominican Republic, Jamaica and Mexico, particularly the west coast — Porta Vallarta, Cabo San Lucas, Mazatlan and Ixtapa. Alaskan cruises are also popular.
For others, vacations have to take a hiatus because there's no getting around the higher costs of virtually everything this year.
Katie McCustion of Tupelo and her family were talking about a beach trip this year but decided not to.
"Because of the heightened cost of hotels, gas, and groceries, as well as no reprieve in sight in these costs easing up, just the daily headlines of more to come, we decided we would hang home," she said.
That turned out to be a good decision, because in the past two weeks, the McCustions have had to spend thousands a new compressor for their air conditioner unit. On top of that, their older child needs his wisdom teeth taken out.
"Groceries are killing us," McCustion said. "We are squarely middle class; we both work. My husband works for Ole Miss in Oxford, and I work for a cyber security company. We are struggling as many are."
