US travellers cut holiday trips short on lasting inflation pain

US CONSUMERS are planning shorter winter holiday trips and booking cheaper accommodations in a sign of how years of inflation continue to hammer family budgets.

Among households earning less than US$100,000 a year, 86 per cent say they will alter their usual holiday plans this year, according to survey findings released on Monday (Oct 21) by personal finance website Bankrate. More than three-quarters of those making US$100,000 or more are doing the same, the September poll of roughly 2,500 US adults found.

The rate of inflation has slowed but years of soaring costs are straining holiday travel budgets, Ted Rossman, a Bankrate senior industry analyst, said. Roughly four in five travellers said they plan to make changes to reduce costs, up from 77 per cent last year.

“The cumulative effect is the big problem,” Rossman said. “Multiple years of paying more for everything from housing to food, gas and discretionary items has eroded savings and increased debt.”

Nearly one-third of those making changes expect to travel fewer days this year, and almost as many are opting for cheaper destinations or accommodations. More than one in four plan to drive instead of fly and 25 per cent say they will plan activities that cost less.

“They don’t want to skip the trip entirely, but they are willing to make adjustments that lower the cost,” said Rossman. BLOOMBERG