As we noted recently, despite steady signs of rising inflation, roughly half of U.S. consumers plan to take summer vacations in the next few weeks, and many expect to spend even more this summer than they did last year.
But as PYMNTS Intelligence recently revealed in its latest “New Reality Check” report, “Payday Foodies Skimp on Beds, Splurge on Treats,” not everyone is packing.
The choice to stay home may make sense for some, given the fact that 64% of U.S. consumers currently run out of money before payday, up from 61% in April 2023, according to the data. 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 have been forced to cut back on their spending, and for at least some, this summer has been austerity measures that have included maintaining the status quo.
While 61% of consumers who are making ends meet before payday and are having no trouble 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, the primary reason survey respondents aren't traveling this year is financial constraints: 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 keep up with their bills say the same. Even among those not living payday, 19% say they can't afford a summer trip.
This last group — consumers who aren't struggling to make ends meet before payday — may simply be looking to avoid the summer crowds: After all, 22% of them cited wanting to stay home as their top reason for not traveling this summer, and 11% said they would prefer to travel during off-peak seasons.
For cash-strapped consumers who are still planning to travel despite their financial struggles, the answer appears to be to compromise and cut corners. For example, our data shows that this demographic is most likely to travel to more budget-friendly locations and travel in groups to save money. They're also less picky about the quality of their accommodations, instead prioritizing longer stays and better food over overnight stays. The bottom line is that summer travel is still a necessity, at least for cash-strapped consumers.
Read more: Data Brief, Featured Stories, New Reality Check, News, Paycheck to Paycheck, PYMNTS Intelligence, PYMNTS News, Staycation, Summer Travel, Travel Expenses, Vacation Planning, Vacation Spending
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