Last year’s COVID-19 pandemic changed nearly everything, with many Americans (26%) opting out of vacation travel. This year, more than two of his five American girlfriends (43%) plan to spend money on flights and hotel stays during the holiday season, and on average he spent $1,814. I’m here. According to a recent NerdWallet analysis, this means his nearly 110 million travelers are spending about $200 billion on vacation travel expenses.
A new NerdWallet survey conducted online by The Harris Poll of more than 2,000 U.S. adults (780 of whom plan to spend money on flights and hotel stays for the 2021 vacation) found that: We asked Americans about their travel plans for this holiday season. We also asked travelers how they are saving money on their vacation trips, whether they charge their credit cards for travel expenses, and how COVID-19 is impacting their travel plans.
Main findings
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Nearly 3 in 10 Americans (29%) who said they didn’t travel during the 2020 holiday season plan to spend money on flights and hotel stays during the 2021 holiday season, according to a survey.
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According to the study, the average bill for Americans planning to pay for holiday travel in 2021 with a credit card is $1,471. That’s over $116 billion in total credit card spending on holiday travel this year.
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According to the survey, nearly nine in 10 (89%) holiday travelers — defined as those planning to spend money on flights and hotel stays this holiday — have holiday-related I am taking action to save travel expenses.
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Nearly a quarter (24%) of vacationers say they are using unusual modes of transport during their holidays due to COVID-19, according to the survey.
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More than three-quarters (77%) of Americans unsure about spending money on flights and hotels this holiday season say the reason is COVID-related, according to a survey. The same is true for more than half (57%) of Americans who have no plans to spend money on flights or hotels this holiday season.
“COVID has ruined so many holidays and special events. For many, that means traveling to visit family and friends.” , set a budget and try to stick to it, so you can have a special holiday without paying a price for the New Year.”
Holiday travel will rise again from 2020 onwards
The COVID-19 pandemic has disrupted travel plans for many Americans. More than a quarter (26%) of Americans said they intended to travel during the 2020 holiday season but didn’t because of the pandemic, according to the survey. Some people who opted out of travel last holiday season are now traveling this year.
Nearly three in 10 Americans (29%) who did not travel during the 2020 holiday season said they plan to spend money on flights and hotels during the 2021 holiday season. In this report, we refer to people who plan to spend money on flights and hotels this holiday season as “holiday travelers.”
Most vacationers using credit cards
More than 7 in 10 vacationers (71%) say they pay at least part of their travel-related expenses with a credit card, charging an average of $1,471. That translates to nearly 80 million Americans spending a combined $116 billion on credit cards for holiday flights and hotel/motel stays.
“Unless you are in a real emergency, we recommend avoiding credit card debt if possible.“
Sarah Lassner, NerdWallet Travel Expert
Putting travel money on your credit card is not the same as borrowing money for your vacation. More than 1 in 5 of her vacation travelers (21%) who plan to pay for their expenses with a credit card said they would pay the balance on their first statement. This means they don’t have to pay interest and can benefit from potential credit card benefits and purchase protection.
However, some travelers plan to carry their balances with them, at least for some time.
Vacationers who charge their credit cards for these costs believe that it takes an average of 2.8 months to pay off these balances. According to NerdWallet’s analysis, this would cost these vacationers $40 in interest each, or nearly $3.2 billion in total.
“Unless you have a real emergency, we recommend avoiding credit card debt if possible. says Mr. “It’s easy to justify spending $40 extra for vacation, but what if your car breaks down in January and you’re in even more debt before you can pay off your vacation bills? Credit card debt. Without it, it’s easier to deal with unexpected expenses.”
Vacation travelers taking steps to save money
The majority (70%) of Americans who travel for vacation save upfront for these trips, but they may not be fully prepared. More than 1 in 5 (22%) save within her 5 weeks, and on average, holiday travelers save only 9.4 weeks before their trip. Assuming you spend a reported average of $1,814 on vacation travel, you’ll need to save nearly $200 a week on top of what you can save for other vacation expenses.
That said, most vacationers (89%) are taking action to save on travel-related expenses. How to save top money? More than a third (37%) of vacationers say they choose flights based on price rather than convenience, and 33% say they choose hotels/motels based on price rather than amenities. increase.
COVID-19 impacts travel in different holiday seasons
Despite the fact that more Americans will travel over the holidays this year — 43% plan to spend money on vacation flights and hotel stays, compared to 19% in 2020 — The COVID-19 pandemic continues. Impact on travel. Nearly a quarter (24%) of vacationers say they are using unusual modes of transportation due to COVID-19, and 22% say the same about the type of accommodation they chose this year is saying
Some people choose not to travel or are unsure about travel because of COVID-19
Some Americans (38%) will not go on vacation this year, many citing COVID-19 as a reason. Fifty-seven percent of those who do not plan to spend money on flights or hotels during the 2021 holiday travel season said it was at least partially related to COVID-19, making it the top COVID-19-related reason ( 34%) say they are concerned about mutations. I am not traveling.
Others (19%) are undecided whether to spend money on flights or hotels this holiday season. Of those unsure about vacation travel, more than three-quarters (77%) said their reason was related to their COVID-19, with concerns about mutants being the top COVID-related reason (52%).
“Whether or not you feel comfortable traveling this year will depend on your family situation and the people you usually visit. “If you’re not having tough conversations about whether travel is possible now, now is the time. Health and safety come first.”
Tips for travelers this holiday season
Save for your trip in advance. Ideally, money should be set aside throughout the year for intermittent but expected expenses such as car registration and vacation travel expenses. But saving in advance whenever possible is the next best thing. Gifts, travel, and decorations are an expensive time of year for many people. By saving early, you can avoid high-interest debt.
Pay off your outstanding credit card debt quickly. Debt can occur, and if you build up your balance this holiday season, make a repayment plan Immediately. Credit card interest may not seem important if you only have a few months left on your balance, but credit card debt has a high average interest rate and can easily drag on while making minimal payments. I will let you. Try to get out of debt so you don’t overspend your 2021 spending in 2022.
Keep your vacation travel plans flexible. The pandemic has highlighted the importance of keeping travel plans flexible. This is especially important when dealing with new variants of COVID-19 and changing travel restrictions.If you’re booking flights for a vacation trip, check Airline Cancellation and Change PolicyIt would be nice to check it out travel insurancebut check your insurance coverage before purchasing insurance.
“Sadly, we have to make many tough decisions about vacation travel, just like we had to make in 2020,” Rathner said. “If you want to make up for last year’s video call holidays at this year’s celebration, watch your spending. Taking care of yourself this year means following COVID precautions, but It also means protecting your finances.”
methodology
The survey was conducted online in the United States by The Harris Poll on behalf of NerdWallet from September 13-15, 2021, among 2,026 US adults ages 18 and older. holiday season. This online survey is not based on a random sample, so we cannot calculate a theoretical sampling error estimate. For full research methodology, including weighting variables and subgroup sample sizes, please contact Lauren Nash. [email protected].
The study defines the 2021 holiday season as November 18, 2021 through January 5, 2022.
Using U.S. Census population estimates and survey responses, determine the total number of Americans planning to spend money on flights and hotels this holiday season, total travel costs, and total travel costs charged to credit cards. Calculated.
We used the latest average annual rate data from the St. Louis Federal Reserve (17.13% as of August 2021) to calculate the credit card interest rate.
How to maximize your reward
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