A new poll commissioned by Newsweek shows that more than half of individuals polled have decided not to travel this summer. Of the 54 percent who will not be traveling, more than half said that cost was the main reason for their lack of vacation plans and that if the cost of living were less expensive, they would travel within the next three months.
Poll Details and Demographics
Redfield & Wilton Strategies conducted the poll between June 27 and June 28. All 2,500 respondents are eligible to vote in the U.S. The results paint a picture of what the average American consumer and potential voter feels about their personal economic situation.
Impact of Inflation and Living Costs on Travel Plans
Even among individuals who do plan to travel this summer, 64 percent said that inflation and living costs have limited their vacation plans.
Cost-Saving Measures Among Travelers
Fifty-five percent said they were traveling to a less expensive destination due to cost. Forty-five percent said that they economized on the mode of transportation or the level of service within the mode of transportation. Thirty percent said they are economizing on their hotels and other accommodations.
Generational Differences in Travel Decisions
Generation X was the generation most likely to forego vacation this summer due to financial constraints. Fifty-seven percent of Generation X respondents said cost was the primary deterrent to summer travel.
Millennials and Financial Constraints
Millennials were the second most likely to say that they would have traveled if it were less expensive. Boomers and Gen Z were the least likely to have finances impact their decision to travel, but in both generations, the figures were at least 50 percent.
Inflation and Consumer Experience
It takes some time for financial figures to trickle down to consumer experience. It has been over two years since inflation peaked at 9.1 percent in June 2022.
Current Inflationary Environment
Inflation has cooled significantly in the past two years. However, the current inflationary environment is still above the target of 2 percent set by the Federal Reserve.
Expert Analysis on Poll Results
An analyst at Bankrate, Ted Rossman, spoke to Newsweek about its poll results, saying, “Life has gotten a lot more expensive in recent years, which is why so many people are struggling to afford vacations.”
Increased Household Expenses
Rossman explained that household expenses cost 20 percent more now than the same expenses cost in 2022. He cited increased costs for housing, food, gas, and other household needs. Rossman said, “There’s less money to go around for other things such as travel.”
Impact of Credit Card Debt and Interest Rates
Credit card debt and higher interest rates have also increased pressure on consumers who carry debt from month to month.
Current Credit Card Interest Rates
Current credit card interest rates are at 20.71 percent, which Rossman says is “close to a record high set a few months ago. Credit card debt is easy to get into and hard to get out of.”
Affordability of Dream Trips
In March, a poll of over 1,000 Americans conducted by travel data firm Skift revealed that 19 percent of the respondents did not believe their “dream trip” was affordable at the end of 2024.
Changes in Vacation Plans
Many respondents altered their vacation plans due to an affordability challenge. Skift found that in 2023, 72 percent of Americans polled changed their travel plans, compared to 76 percent in the second quarter, 66 percent in the third quarter (Summer quarter), and 68 percent in the last quarter of 2023.
Comparative Travel Surveys
Skift and Newsweek are not the only travel surveys that reveal these economic trends. A Bankrate survey found that only 53 percent of Americans planned to travel for summer vacation this spring. Of the half or so still planning to travel, 36 percent of travelers were willing to charge the trip to a credit card or use a buy now, pay later service.
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