High inflation may cause consumers to change their summer vacation plans

Summer vacation plans may be in swing this year.

This time it’s not because of Covid-19. Instead, high prices due to inflation may cause potential travelers to change their plans.

In fact, 69% of adults who say they will be on holiday this summer expect to change their travel plans as prices have risen to record highs, a survey by Bankrate.com shows.

In the battle between pent-up demand that has built up over the past few years and soaring costs, the desire to travel can still win over many people, predicts Ted Rossman, senior industry analyst at Bankrate.com.

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The most important changes that people indicate they can make include taking fewer trips and traveling shorter distances.

The most common destinations people are looking at this summer include beaches, with 37% of respondents; residence cations, 28%; and cities, 27%. Meanwhile, 21% plan to visit national parks, 17% plan to stay at campsites, 14% will visit theme parks, 12% will travel internationally and 11% plan to go on a cruise.

Still, not everyone is planning a summer getaway.

Those more likely to plan an outing include adults with an annual household income of $ 100,000 and up, with 75% of those surveyed. By comparison, 56% of those earning less than $ 50,000 plan to take a trip.

Parents of children under 18 are also more likely to plan a holiday this summer, with 75%, against 61% of parents with adult children on and 56% of non-parents.

Younger adults are also more likely to say they are very or slightly likely to go on summer vacation, with 72% of Gen Zers aged 18 to 25 and 65% of millennials aged 26 to 41. Meanwhile, 61% of Gen Xere aged 42 through 57 and 58% of baby boomers aged 58 to 76 said the same.

These plans can, of course, be changed as the summer season approaches. The online survey, which included 2,676 adults, was conducted between March 30 and April 1.

A survey by CNBC + Acorns Invest in You, conducted by Momentive in March, showed that 40% of American adults said they would cancel a vacation or trip if consumer prices continued to rise.

If you are planning to take the road, you may want to consider a few cost-saving features, Rossman said.

Look for offers where possible

Prices are higher everywhere. Still, areas that are still experiencing less pedestrian traffic due to the pandemic may be more likely to offer deals.

“If you’m not necessarily married to a particular destination, then maybe let flight and hotel deals guide you,” Rossman said.

Explore credit card rewards

It is never a good idea to take on high-interest credit card balances that you cannot pay off right away.

But if you have the financial flexibility and can afford to take on that debt responsibly, you could consider a new credit card with a sign-up bonus, airline miles or cash back, Rossman said.

“There are a lot of great deals out there right now,” Rossman said.

Do not let the work holidays go to waste

Bankrates survey showed that 30% of paid holiday workers will spend less than half of it this year.

“It’s a really missed opportunity,” Rossman said.

Instead of leaving paid vacation on the table, find a trip within your budget and leave, even if it’s just a stay, he suggested.

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