4 Ways Inflation Will Impact Your Summer Travel and Spending
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Madeline Duley
6 min read
As the weather warms and the days grow longer, you might be feeling an insatiable urge for travel and adventure. After all, strolling along the beach, hiking to a waterfall or simply enjoying a latte along a bustling street sounds far more appealing than sitting behind your desk from 9 to 5. However, inflation is casting a dark shadow on many Americans’ travel plans, turning dream getaways into anxiety-inducing nightmares.
With inflation continuing to rear its ugly head, take a look at its impact on Americans’ summer vacation budgets and the strategies you can employ to save money this summer.
Higher Transportation Costs
While your budget feels the strain of consistent price hikes, and your mind and body are ready to switch into vacation mode, inflation isn’t taking a summer break.
“Let’s face it, everything is going to be higher when it comes to travel this summer,” said David Bakke, travel expert at DollarSanity. “Flights will be more expensive, as will hotels, and rental car rates are generally through the roof. Gas is peskily high still as well.”
Shorter Vacations
Even if your budget is tighter this season, you don’t have to give up on the getaway you deserve. Opting for weekend getaways, day trips or a few days of restful bliss can help you cut back on costs while still enjoying a well-earned break.
“Rising prices have had an impact on the type and length of holiday destinations people choose,” said Alonso Marly, travel expert at SkyLux Travel. “When just a few years ago travelers would go for long-distance trips more often than not, today, many people prefer to travel domestically or take shorter trips overseas instead.”
All-Inclusive Vacations
If you’re craving a longer vacation, consider an all-inclusive experience.
“There is a stable demand for long-haul destinations, especially now, during the busy summer season, when holidaymakers tend to prioritize travel over other daily expenses,” Marly said. “Thus, all-inclusive holidays and lower-cost locations such as Mexico, Egypt, Turkey and the Caribbean are growing in popularity.”
In this time of high inflation, little costs add up quickly. An all-expenses-paid experience offers financial security and a hassle-free vacation option that is becoming increasingly popular this summer. Even better, most all-inclusive vacations provide plenty of activities, buffets and water attractions for both families and adults.
Last-Minute Bookings
Despite vacations being more expensive than ever, Americans are determined not to give up on their summer getaways. However, they are throwing the phrase “the early bird gets the worm” out the window.
“When it comes to this year’s summer travel, many Americans are most likely to make their travel plans at the very last minute to see if there are any special deals or discounted holiday offers,” Marly said. “It is still hard to predict if the global inflation will start to slow down later in 2024, but as a travel expert of many years, I believe it’s safe to say that regardless of the rising costs, giving up their annual holiday is the last thing people will want to do.”
4 Creative Ways To Save Money on Summer Travel
With no signs of inflation easing up in the coming months, it’s time to take your summer vacation into your own hands. With an open mind and a little extra flexibility, you can still enjoy all the benefits of a vacation without jeopardizing your financial well-being.
Try A Next-Level Staycation
What better way to save on a relaxing getaway than to explore the city around you? A staycation might not be the glamorous summer vacation you had in mind, but if you treat it like a true vacation — take time off work, have a daily itinerary and engage in activities your city has to offer that you’ve never gotten around to doing — you can enjoy the perks of a vacation without the high price tag.
“If you go the staycation route, make it memorable,” Bakke said. “Here’s an idea — cost out the trip you wanted to take but couldn’t because of the higher costs. Subtract, say, $500 from that total amount. Then schedule a Mac Daddy staycation where you visit all the cool sites where you live, and maybe schedule a short day trip as well. Relegating yourself to a staycation doesn’t have to be viewed as a defeat or a negative. It’s all in how you plan it.”
Shave Travel Costs Where You Can
You can still have an incredible summer adventure, even with inflation driving up prices. All it takes is a little extra creativity and flexibility.
“Maybe you only rent a car for four days out of your six-day vacation,” Bakke said. “Use public transportation or ride-sharing instead, which at times can be less expensive. Get a hotel room with cooking amenities and have some fun nights in the room where you cook a meal right there and then save an expensive restaurant bill. And here’s an easy one — find a hotel with laundry facilities, pack less, do a little washing and drying and lower/eliminate checked baggage fees.”
Live Like a Local
Living like a local isn’t just about saving money; this mindset can enrich your travel experience while helping you stick to your budget. Timon van Basten, a tour guide in Spain and the founder of Travel Spain 24, swears by this approach, finding it key to immersing himself in the culture of a new destination while protecting his finances.
“Last summer, my partner Filipa and I took a road trip to a nearby beach town instead of flying somewhere more expensive,” van Basten said. “We stayed in an affordable rental home and cooked most of our meals, which allowed us to stick to our budget despite inflated travel costs. By being flexible with our plans and seeking out deals, we had an incredible week making memories without overspending.”
Stay Alert
Securing an affordable vacation during a period of high inflation demands a little extra effort, but staying vigilant for deals can help you book budget-friendly travel plans.
“Set airfare price alerts to snag cheaper tickets — Use sites like Airfarewatchdog or Hopper to set fare alerts leaving from your airport to your desired destination, or just set it from your home airport to see what type of deals become available,” said Andrea Woroch, consumer and money saving expert at Andrea Woroch. “You can find very cheap options this way and chase the deals!”
