Inflation’s Impact on Travel
Travel in a post-pandemic world is more expensive than ever. The world economy is facing headwinds, and prices are continuing to climb. We have seen record inflation and gas prices, also the latter has been on a downward trend for over a month now.
If you have booked a flight or a hotel this summer, or have just attempted to, then you have probably noticed a sharp rise in airfares and other commodities. But how much more does it cost to travel now, compared to 2019? And how has that changed travel plans for many?
Passport-Photo recently published a survey where they asked more than 1,000 Americans if inflation is wreaking havoc on their travel budgets, whether they had to downgrade their vacation plans, and much more.
Key Findings
While travel is clearly more expensive than ever, and even a big mess for those who plan to fly, most Americans still plan to go on vacation. 96% of survey participants said they will do so in 2022. When asked how many leisure trips they intend to take this year, they said
- Two: 35%
- Three: 24%
- One: 15%
- Four: 14%
- Five or more: 11%
Based on the survey results, almost nine in 10 vacation-goers (88%) said they had to downgrade their vacation plans due to inflation and soaring prices.
Those who are planning to travel this year, had to budget 11–20% more toward travel to keep their plans afloat. When asked how much they are prepared to spend on travel (per person), they said:
- $2,001–$3,000: 21%
- $3,001–$4,000: 20%
- $1,001–$2,000: 20%
- $501–$1,000: 18%
- $4,001 or more: 15%
- $0–$500: 6%
For 85% of Americans, higher airfares made them seek alternative means of transportation when traveling this year: 75% will opt for a car, or possible an electric one. 66% have considered trains, 60% buses, and 43% a ship.
72% of vacationers are likely or very likely to (further) cut back on travel in 2022 and beyond if inflation persists.
You can see the full survey here.
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Speaking from personal experience, we’ve had to adjust our travel style a little. Rather than being spontaneous like I prefer, we now book further in advance (6-9 months out) to get a deal. And we’ve had to say “no” to a family reunion and a friend’s wedding because it wasn’t feasible to book tickets at $600 a pop.
Here are my 2022 travel plans (past and future):
To Date:
1 international trip (10 nights)
1 domestic trip (3 nights)
2 road trips (6 nights)
Planned trips:
4 domestic trips (19 nights)
4 road trips (8 nights)
As I write that out, I realize how blessed I am to travel as much as I do. So thankful to have found the miles & points hobby or we would never be able to travel as much as we do.