As Recently reportedDespite steady signs of rising inflation, about half of U.S. consumers plan to take summer vacations in the next few weeks, and many expect to spend more this summer than they did last year.
However, as PYMNTS Intelligence recently revealed in the latest edition of its “New Reality Check” report,Payday foodies skimp on beds and splurge on foodThat said, not everyone is packing.
Staying home may make sense for some Taking the facts into account According to the data, 64% of U.S. consumers are now running out of money before payday, up from 61% in April 2023. Following this trend, a quarter of the 2,238 consumers surveyed for the report said their financial situation has worsened this year.
As a result, many Americans Cut expensesand of belt Tightening For at least some people, that means staying home this summer.
While 61% of consumers who are making ends meet before payday and are comfortable paying their bills, and 44% of those who admit to struggling to make monthly payments, say they plan to travel this summer, economic uncertainty is putting a damper on summer travel plans for many others.
As the chart below shows, financial constraints are the primary reason survey respondents cited for not traveling this year: 79% of payday consumers who are having trouble paying their bills say they plan to stay home this summer because they can’t afford to travel, while 51% of those who are living payday but managing to get by say the same thing. Even among those not living payday, 19% say they can’t afford a summer trip.
This last group — consumers not living paycheck to paycheck — may simply be looking to avoid the summer crowds. in the end22% of respondents said wanting to stay home is their main reason for not traveling this summer, while 11% said they would prefer to travel during off-peak seasons.
For pre-payday consumers who are still planning to travel despite financial hardship, the answer is compromise. Disconnect For example, our data shows that this demographic is the most likely to travel to more budget-friendly locations and travel in groups to save money. They are also the least likely to care about the quality of their accommodations. Instead, they value longer stays and better food over lodging. The takeaway here is that, at least for some, Financially struggling Summer travel remains a necessity for consumers.
