With the summer travel season here, travel enthusiasts are eager to embark on long-awaited vacations despite a challenging economic landscape.
According to a recent survey by the Bank of America Institute, 72% of consumers plan to travel this summer, highlighting a strong desire for leisure experiences.
The survey, which explored consumer spending habits, revealed a 2% year-on-year decline in travel spending on credit cards.
"We've seen a significant appetite for leisure travel, even though the overall spending is slightly down," financial expert Shikha Narula from Bank of America explains.
One notable trend this summer is the resurgence of cruise travel.
"Millennials are doubling their cruise spend relative to where they were back in 2019," Narula explained.
Cruise lines are responding by offering new destinations and shorter trip options to cater to a broader audience.
International travel is also seeing a notable uptick, particularly to destinations such as Japan.
"Point of sale international credit card spending in Japan is up 15% year on year," Narula confirmed, highlighting the growing popularity of the Asian destination.
Despite these promising travel plans, many consumers are mindful of their budgets. The survey found that 84% of respondents are establishing a travel budget to ensure a stress-free vacation. Narula advises that careful pre-trip planning can help maximize the value of a holiday.
"Think of places where you might be able to save, such as attending sporting events during weekdays or choosing less expensive seats," she suggested.
Entertainment spending is another area where travelers are willing to splurge. Major concerts, such as Taylor Swift's Era Tour and Beyonce's Renaissance World Tour, demonstrate how much people are prepared to spend on memorable experiences.
To manage costs effectively, Narula recommends using financial tools like rewards credit cards. "Customized cash credit cards give you 3% back in the category of your choice," she explained. By setting the category to travel before departure and switching to dining during the trip, consumers can optimize their savings.
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