Quicktake: Consumers are budget-weary, but still planning spring and summer travel
Inflation has made an impact on 65% of consumers with spring/summer plans
Of all consumers planning to take time off during the warmer months, 80% will be taking a vacation, while 20% will be staycationing. Budget is front and center for nearly all: nearly 7 in 10 say inflation has made an impact on their plans, and travelers are making adjustments to their plans to cope: 36% will spend less, 34% reduced their budget, and 29% will do fewer activities.
More plan to travel domestically
86% of vacationers are planning a domestic trip, including 72% who plan to travel only domestically, and 14% traveling both in and out of the country. This compares to 61% who said they traveled domestically last year. Consumers’ international travel plans dropped slightly, going from 31% to 28%.
Big spenders are most likely to be Millennials
67% of vacationers expect to spend less than $5,000 on their trip. Millennials are most likely to spend more: 41% will spend more than $5,000 on their trip, with 13% specifically expecting to spend more than $15,000.
More earning than burning rewards
62% of vacationers expect to earn rewards for their travel, led by Millennials at 69%. Only one in 5, though, will pay for their vacation, including associated activities and goods, using miles, points, or rewards.
Key takeaway: Vacation is a bright spot for consumers
Inflation has been grinding on, but consumers are not wiling to give up their vacations – they are just spending differently, focusing more on domestic travel and looking for savings opportunities. In addition to value-focused messaging, brands should shine a spotlight on their loyalty programs: ensure your customers know all of the ways they can earn and spend their rewards.
Source: Bread Financial proprietary study, Spring/Summer Travel Plans, February 2023
