NerdWallet’s 2021 Holiday Travel Report

The COVID-19 pandemic modified nearly every thing final yr, and plenty of People (26%) opted out of touring for the vacations due to it. This yr, greater than 2 in 5 People (43%) plan to spend cash on flights or lodge stays throughout the vacation season, spending $1,814, on common. That’s near 110 million vacationers spending almost $200 billion on vacation journey bills, in keeping with latest NerdWallet evaluation.

A brand new NerdWallet survey of greater than 2,000 U.S. adults — 780 of whom plan to spend cash on flights/lodge stays for the 2021 holidays — carried out on-line by The Harris Ballot requested People about their journey plans this vacation season. We additionally requested vacationers how they’re saving cash on vacation journey, whether or not or not they’re charging journey bills to a bank card, and the way COVID-19 is impacting their deliberate journeys.

• Shut to three in 10 People who say they didn’t journey throughout the 2020 vacation season (29%) plan to spend cash on flights/lodge stays throughout the 2021 vacation season, in keeping with the survey.

• The survey reveals that of People who plan to place 2021 vacation journey bills on a bank card, the common they plan to cost is $1,471. That’s greater than $116 billion in complete bank card spending on vacation journey this yr.

• The survey discovered that about 9 in 10 vacation vacationers (89%) — outlined as those that plan to spend cash on flights/lodge stays for the vacations this yr — are taking motion to economize on holiday-related journey bills.

• Round 1 / 4 of vacation vacationers (24%) say they’re utilizing a distinct technique of transportation to journey for the vacations than they usually would due to COVID-19, in keeping with the survey.

• Greater than three-quarters of People who’re uncertain if they are going to be spending cash on flights/resorts this vacation season (77%) say their causes are COVID-related, the survey reveals. The identical goes for greater than half of People who don’t plan to spend on flights/resorts for the vacations this yr (57%).

“COVID ruined so many holidays and particular occasions. People are prepared for a vacation season that feels prefer it used to, and for a lot of, which means touring to go to household and associates,” says Sara Rathner, journey knowledgeable at NerdWallet. “The urge to spare no expense is powerful, however set a finances and attempt to follow it. You’ll be able to have a particular vacation with out spending the brand new yr paying the value for it.”

The COVID-19 pandemic has been disruptive to many People’ journey plans. Greater than 1 / 4 of People (26%) say they supposed to journey throughout the 2020 vacation season, however didn’t due to the pandemic, in keeping with the survey. A few of those that opted out of journey final vacation season are heading out this yr.

Shut to three in 10 People who didn’t journey throughout the 2020 vacation season (29%) say they plan to spend cash on flights and resorts throughout the 2021 vacation season. All through this report, we’ll seek advice from those that plan to spend cash on flights and resorts this vacation season as “vacation vacationers.”

Greater than 7 in 10 vacation vacationers (71%) say they’ll put not less than a few of their travel-related bills on a bank card, charging $1,471 on common. That’s near 80 million People spending a mixed $116 billion on bank cards for vacation flights and lodge/motel stays.

Placing journey costs on a bank card isn’t synonymous with going into debt for vacation journey. Greater than 1 in 5 vacation vacationers planning to place bills on a bank card (21%) say they’ll repay the stability with the primary assertion. Which means they gained’t owe any curiosity and might simply reap the advantages of potential bank card rewards and buy safety.

Nevertheless, some vacationers plan to hold balances, not less than for a short time.

Vacation vacationers charging these bills to a bank card suppose it’ll take them, on common, 2.8 months to pay these balances off. This is able to value these vacation vacationers $40 in curiosity every, or a complete of near $3.2 billion, in keeping with NerdWallet evaluation.

“Except you’re experiencing a real emergency, we advocate avoiding bank card debt if attainable. It provides onto the price of every thing and might rapidly spiral uncontrolled,” Rathner says. “It may be simple to justify an additional $40 for the vacations, however what in case your automotive breaks down in January and also you tackle extra debt earlier than you repay these vacation payments? Once you don’t have bank card debt, you’re in a greater place to take care of surprising prices.”

The vast majority of People who journey for the vacations (70%) save for these journeys prematurely, however possibly not far sufficient prematurely. Greater than 1 in 5 (22%) save for 5 weeks or much less, and on common, those that journey for the vacations save for simply 9.4 weeks earlier than journey. Assuming they spend the reported common of $1,814 on vacation journey, they would wish to avoid wasting near $200 every week — on high of what they could be saving for different vacation prices.

That stated, most vacation vacationers (89%) are taking motion to economize on their travel-related bills. The highest money-saving strategies? Greater than a 3rd of vacation vacationers (37%) say they’ll select a flight based mostly on value as an alternative of comfort, and 33% say they’ll select a lodge/motel based mostly on value as an alternative of facilities.

Even supposing extra People are touring for the vacations this yr — 43% plan to spend cash on flights or lodge stays for the vacations, in comparison with 19% who did so in 2020 —  the COVID-19 pandemic persists, and so does its influence on journey. Roughly 1 / 4 of vacation vacationers (24%) say they’re utilizing a distinct technique of transportation than they usually would due to COVID-19, and 22% say the identical factor about the kind of lodging they’re choosing this yr.

Some People (38%) aren’t heading out for the vacations this yr, and plenty of of them cite COVID-19 as a motive. Of those that don’t plan to spend cash on flights/resorts throughout the 2021 vacation journey season, 57% say it’s not less than partly associated to COVID-19, with concern about variants being the highest COVID-related motive (34%) for not touring.

Others (19%) have but to determine in the event that they’re going to spend cash on flights/resorts this vacation season. Of these uncertain about vacation journey, greater than three-quarters (77%) say their causes are associated to COVID-19, with the highest COVID-related motive being concern about variants (52%).

“Whether or not or not you’re feeling snug touring this yr can rely upon your loved ones’s state of affairs, in addition to the conditions of the folks you’d normally go to. There are nonetheless many causes to remain near dwelling in your bubble,” Rathner says. “When you haven’t had these powerful conversations about whether or not or not journey is feasible for you proper now, it’s time. Well being and security come first.”

Save for journey prematurely. Ideally, it is best to put cash apart year-round for intermittent, however anticipated, bills like automotive registration and vacation journey prices. However saving as far prematurely as attainable is the following neatest thing. With presents, journey, decor and extra, the vacations are an costly time of yr for a lot of, and saving early may help you keep away from high-interest debt.

Repay any accrued bank card debt rapidly. Generally debt occurs, and for those who rack up a stability this vacation season, make a plan to pay it down sooner somewhat than later. Curiosity costs on a bank card could appear immaterial whenever you’re solely carrying a stability for a couple of months, however bank card debt carries a excessive common rate of interest and it’s simple to let it linger whereas making minimal funds. Work to get rid of the debt so that you aren’t carrying 2021 spending too far into 2022.

Preserve vacation journey plans versatile. The pandemic has highlighted the significance of protecting journey plans versatile, which is particularly essential as we take care of new COVID-19 variants and altering journey restrictions. When you’re reserving a flight for vacation journey, try airline cancellation and alter insurance policies. It’s additionally a good suggestion to look into journey insurance coverage, however be sure you know what a coverage covers earlier than buying it.

“Sadly, we’re nonetheless having to make lots of the similar troublesome selections about vacation journey as we needed to make in 2020,” Rathner says. “If you’d like this yr’s celebrations to make up for final yr’s holiday-by-video-call, simply be conscious of your spending. Caring for your self this yr means following COVID precautions, however it additionally means defending your funds, too.”

This survey was carried out on-line inside the US by The Harris Ballot on behalf of NerdWallet from Sept. 13-15, 2021, amongst 2,026 U.S. adults ages 18 and older, amongst whom 780 plan to spend cash on flights/lodge stays throughout the 2021 vacation season. This on-line survey will not be based mostly on a chance pattern and due to this fact no estimate of theoretical sampling error may be calculated. For full survey methodology, together with weighting variables and subgroup pattern sizes, please contact Lauren Nash at [email protected].

The 2021 vacation season is outlined as Nov. 18, 2021, to Jan. 5, 2022, for the needs of this examine.

We used U.S. Census inhabitants estimates and survey responses to calculate the overall variety of People who plan to spend cash on flights/resorts this vacation season, in addition to the overall journey bills and the overall journey bills charged to bank cards.

We used the newest common annual share charge knowledge from the Federal Reserve of St. Louis (17.13% as of August 2021) to calculate bank card curiosity.