US consumers are planning shorter winter holiday trips and booking cheaper accommodations in a sign of how years of inflation continue to hammer family budgets.
Among households earning less than $100,000 a year, 86% say they will alter their usual holiday plans this year, according to survey findings released on Monday by personal finance website Bankrate. More than three-quarters of those making $100,000 or more are doing the same, the September poll of roughly 2,500 US adults found.
The rate of inflation has slowed but years of soaring costs are straining holiday travel budgets, Ted Rossman, a Bankrate senior industry analyst, said in a statement. Roughly four in five travelers said they plan to make changes to reduce costs, up from 77% last year.
“The cumulative effect is the big problem,” Rossman said. “Multiple years of paying more for everything from housing to food, gas and discretionary items has eroded savings and increased debt.”
Nearly one-third of those making changes expect to travel fewer days this year, and almost as many are opting for cheaper destinations or accommodations. More than one in four plan to drive instead of fly, and 25% say they will plan activities that cost less.
“They don't want to skip the trip entirely, but they're willing to make adjustments that lower the cost,” said Rossman.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
