NerdWallet’s 2021 Vacation Journey Report

The COVID-19 pandemic modified nearly the whole lot final yr, and lots of People (26%) opted out of touring for the vacations due to it. This yr, greater than 2 in 5 People (43%) plan to spend cash on flights or lodge stays throughout the vacation season, spending $1,814, on common. That’s near 110 million vacationers spending practically $200 billion on vacation journey bills, in response to latest NerdWallet evaluation.

A brand new NerdWallet survey of greater than 2,000 U.S. adults — 780 of whom plan to spend cash on flights/lodge stays for the 2021 holidays — performed on-line by The Harris Ballot requested People about their journey plans this vacation season. We additionally requested vacationers how they’re saving cash on vacation journey, whether or not or not they’re charging journey bills to a bank card, and the way COVID-19 is impacting their deliberate journeys.

“COVID ruined so many holidays and particular occasions. People are prepared for a vacation season that feels prefer it used to, and for a lot of, which means touring to go to household and buddies,” says Sara Rathner, journey knowledgeable at NerdWallet. “The urge to spare no expense is powerful, however set a price range and attempt to keep on with it. You may have a particular vacation with out spending the brand new yr paying the worth for it.”

The COVID-19 pandemic has been disruptive to many People’ journey plans. Greater than 1 / 4 of People (26%) say they meant to journey throughout the 2020 vacation season, however didn’t due to the pandemic, in response to the survey. A few of those that opted out of journey final vacation season are heading out this yr.

Shut to three in 10 People who didn’t journey throughout the 2020 vacation season (29%) say they plan to spend cash on flights and inns throughout the 2021 vacation season. All through this report, we’ll consult with those that plan to spend cash on flights and inns this vacation season as “vacation vacationers.”

Greater than 7 in 10 vacation vacationers (71%) say they’ll put a minimum of a few of their travel-related bills on a bank card, charging $1,471 on common. That’s near 80 million People spending a mixed $116 billion on bank cards for vacation flights and lodge/motel stays.

Placing journey fees on a bank card isn’t synonymous with going into debt for vacation journey. Greater than 1 in 5 vacation vacationers planning to place bills on a bank card (21%) say they’ll repay the stability with the primary assertion. Meaning they received’t owe any curiosity and might simply reap the advantages of potential bank card rewards and buy safety.

Nonetheless, some vacationers plan to hold balances, a minimum of for a short time.

Vacation vacationers charging these bills to a bank card suppose it is going to take them, on common, 2.8 months to pay these balances off. This may value these vacation vacationers $40 in curiosity every, or a complete of near $3.2 billion, in response to NerdWallet evaluation.

“Except you’re experiencing a real emergency, we suggest avoiding bank card debt if attainable. It provides onto the price of the whole lot and might shortly spiral uncontrolled,” Rathner says. “It may be straightforward to justify an additional $40 for the vacations, however what in case your automobile breaks down in January and also you tackle extra debt earlier than you repay these vacation payments? Whenever you don’t have bank card debt, you’re in a greater place to take care of surprising prices.”

Nearly all of People who journey for the vacations (70%) save for these journeys prematurely, however perhaps not far sufficient prematurely. Greater than 1 in 5 (22%) save for 5 weeks or much less, and on common, those that journey for the vacations save for simply 9.4 weeks earlier than journey. Assuming they spend the reported common of $1,814 on vacation journey, they would want to save lots of near $200 every week — on prime of what they is perhaps saving for different vacation prices.

That mentioned, most vacation vacationers (89%) are taking motion to economize on their travel-related bills. The highest money-saving strategies? Greater than a 3rd of vacation vacationers (37%) say they’ll select a flight primarily based on value as a substitute of comfort, and 33% say they’ll select a lodge/motel primarily based on value as a substitute of facilities.

Although extra People are touring for the vacations this yr — 43% plan to spend cash on flights or lodge stays for the vacations, in comparison with 19% who did so in 2020 —  the COVID-19 pandemic persists, and so does its impression on journey. Roughly 1 / 4 of vacation vacationers (24%) say they’re utilizing a unique technique of transportation than they usually would due to COVID-19, and 22% say the identical factor about the kind of lodging they’re choosing this yr.

Some People (38%) aren’t heading out for the vacations this yr, and lots of of them cite COVID-19 as a purpose. Of those that don’t plan to spend cash on flights/inns throughout the 2021 vacation journey season, 57% say it’s a minimum of partly associated to COVID-19, with concern about variants being the highest COVID-related purpose (34%) for not touring.

Others (19%) have but to determine in the event that they’re going to spend cash on flights/inns this vacation season. Of these not sure about vacation journey, greater than three-quarters (77%) say their causes are associated to COVID-19, with the highest COVID-related purpose being concern about variants (52%).

“Whether or not or not you’re feeling snug touring this yr can depend upon your loved ones’s scenario, in addition to the conditions of the folks you’d normally go to. There are nonetheless many causes to remain near house in your bubble,” Rathner says. “When you haven’t had these powerful conversations about whether or not or not journey is feasible for you proper now, it’s time. Well being and security come first.”

Save for journey prematurely. Ideally, it is best to put cash apart year-round for intermittent, however anticipated, bills like automobile registration and vacation journey prices. However saving as far prematurely as attainable is the subsequent neatest thing. With presents, journey, decor and extra, the vacations are an costly time of yr for a lot of, and saving early may also help you keep away from high-interest debt.

Repay any accrued bank card debt shortly. Typically debt occurs, and in the event you rack up a stability this vacation season, make a plan to pay it down sooner quite than later. Curiosity fees on a bank card could appear immaterial if you’re solely carrying a stability for a number of months, however bank card debt carries a excessive common rate of interest and it’s straightforward to let it linger whereas making minimal funds. Work to remove the debt so that you aren’t carrying 2021 spending too far into 2022.

Hold vacation journey plans versatile. The pandemic has highlighted the significance of holding journey plans versatile, which is very necessary as we take care of new COVID-19 variants and altering journey restrictions. When you’re reserving a flight for vacation journey, take a look at airline cancellation and alter insurance policies. It’s additionally a good suggestion to look into journey insurance coverage, however be sure to know what a coverage covers earlier than buying it.

“Sadly, we’re nonetheless having to make most of the identical tough choices about vacation journey as we needed to make in 2020,” Rathner says. “In order for you this yr’s celebrations to make up for final yr’s holiday-by-video-call, simply be aware of your spending. Taking good care of your self this yr means following COVID precautions, but it surely additionally means defending your funds, too.”

This survey was performed on-line inside america by The Harris Ballot on behalf of NerdWallet from Sept. 13-15, 2021, amongst 2,026 U.S. adults ages 18 and older, amongst whom 780 plan to spend cash on flights/lodge stays throughout the 2021 vacation season. This on-line survey just isn’t primarily based on a likelihood pattern and subsequently no estimate of theoretical sampling error could be calculated. For full survey methodology, together with weighting variables and subgroup pattern sizes, please contact Lauren Nash at [email protected].

The 2021 vacation season is outlined as Nov. 18, 2021, to Jan. 5, 2022, for the needs of this research.

We used U.S. Census inhabitants estimates and survey responses to calculate the whole variety of People who plan to spend cash on flights/inns this vacation season, in addition to the whole journey bills and the whole journey bills charged to bank cards.

We used the newest common annual proportion charge information from the Federal Reserve of St. Louis (17.13% as of August 2021) to calculate bank card curiosity.