Inflation remains a top issue for Americans in this year's election, but it is also top of mind for those planning holiday trips. Bankrate's annual Holiday Travel Survey finds 83% of travelers are changing plans this year due to inflation. "It's hard to get 83 percent of Americans to agree on anything, and yet that's how may are changing their plans," says Ted Rossman, Bankrate senior analyst.
Note that most Americans are changing travel plans, not canceling them. "There aren't too many people who want to skip the trip entirely," says Rossman. "But what they are doing is they're traveling for fewer days, they're picking cheaper accommodations, they're driving instead of flying...those were the three biggest modifications."
"So people are still traveling, they're just traveling differently."
Whether they're spending more or less on the trip, most of those in the survey (59%) plan on paying for it with a credit card. That will add to the already record-high level of consumer debt. Rossman recommends finding ways to cut the price before you spend. "A lot of people are sitting on a surprisingly high amount of credit card rewards and frequent flyer miles and hotel points...aim to put those to use, because they do have real value," he tells KTRH. "Also, when you're planning a trip, be flexible...maybe you can go a few days early or stay a few days late."
The good news is overall, travel prices are not at the level they were a couple of years ago when inflation was at its peak. But Rossman believes the cumulative effect of higher prices over an extended period is taking its toll on travelers. "Travel prices themselves have really stabilized, but it's the cost of everything else that's just leaving less money to go around," he says.
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