A 2024 Summer Travel Report by NerdWallet recently reported key insights into what the 2024 travel season will look like.
According to the annual survey, 45% of Americans have travel plans this summer that require a hotel or a flight. Many of these travelers plan on going into debt to afford these vacations.
While travel debt may seem inevitable for some, there are ways to lower the costs.
What is travel debt?
According to the study, 83% of summer travelers expect to pay for at least a portion of their expenses with a credit card. However, not all of them plan to pay off the debt right away. “(Twenty percent) of summer travelers plan to use a credit card for these expenses but won’t pay off the expenses in full within the first billing statement.”
Some travel debt will come from the wedding season, according to CNBC. Wedding accommodations and the cost of travel “racked up the highest bills.”
The 2024 Summer Travel Report cited vacationing with family members and visiting family as the most popular reasons for traveling. The next most popular reasons included vacationing with a significant other and visiting friends. Of the Americans who will not be taking a vacation that requires a flight or a hotel stay, 22% cited inflation as the culprit. Almost as many non-travelers reported the same — inflation “has made their other expenses too expensive, so they can’t afford to take a summer vacation.”
How can I avoid travel debt?
According to NerdWallet, 2024 summer travelers have supplied a list of ways they are saving money on their travels.
The leading money-saving technique is driving instead of flying. Forty-two percent of study participants will forego a flight and take to the roads instead. Thirty-nine percent plan to choose a hotel, motel or resort based on the price rather than the amenities.
For those summer travelers who will be flying, many will choose a flight based on the price. Others will stay with family and friends.
According to CNBC, there are other ways to cut down on expenses:
Book your travel as soon as possible
“The sooner you book your travel plans, the lower the upfront cost will tend to be,” according to CNBC. Remember that flight prices will spike around the holidays. Additionally, flying on a Tuesday or a Wednesday often produces cheaper tickets than weekend flights.
Watch the costs of food
Look for ways to cut down on restaurant and food expenses. Prepare now by looking at potential restaurants you will visit on your vacation — plus what the costs will be.
Use credit card rewards
If using a credit card on vacation, check for benefits. These rewards may help to lower the cost of dining expenses and travel fees. Ted Rossman, a Bankrate senior industry analyst, provided further advice.
“It’s a good idea to pay with a credit card that offers generous travel insurance benefits such as trip cancellation and interruption insurance and stipends if your flight is delayed or your luggage is lost,” he told Bankrate. “Rental car insurance is another helpful benefit included on many cards.”