High Inflation Could Be Killing Summer Vacations

High inflation rates in the U.S. are driving the cost of airfares and hotel nights sky high and pricing many would-be travelers out of their summer vacation plans.

Two-thirds of Americans who plan to take vacations this year said they may not be able to go because they are getting squeezed between high prices and an iffy economy and job market, according to a new Harris Poll.

Of 1,339 Americans surveyed online, 30% said travel has gotten too expensive because of inflation, 28% said they can’t afford to travel and 13% said their job doesn’t provide paid vacation days.

"We’re facing a challenging macroeconomic environment that adds uncertainty to this summer’s vacation plans," said Michelle Bonam, vice president of organizational effectiveness at human resources software and services provider Ceridian.

Ceridian commissioned the survey, which was conducted in the U.S., the U.K. and Canada.

Other reasons standing in the way of a taking a trip include a heavy workload. Of those surveyed, 19% said they're too busy, 15% said there's no one to cover for them and 10% said their bosses discourage vacations.

Not everyone is expecting a steep decline in summer vacation plans, though.

A report last month by Bank of America showed that spending at airlines and travel agencies is up more than 60% year-over-year. And in an earlier survey by Skift Research, most respondents said they have seen the price of their travel expenses rise, but only 5% said they will cut or have cut their travel spending. "Given these data points, we are cautiously optimistic that travel will remain insulated from spending cuts," the researchers wrote.

Still, travel has gotten increasingly expensive. In the last year, the consumer price index for airline fares has soared 25%. That's the biggest spike since the Federal Reserve of St. Louis began tracking the index in 1989.

Other vacation-related expenses have also been on the rise due to inflation, including car rentals, food away from home, hotels and entertainment venues.

Hotel room rates hit a record high in March, though they have since eased slightly, according to a report by personal finance website NerdWallet. Room rates, on average, are 15.3% more than where they were in 2019 before the pandemic.

Rental cars, though dropping in price recently, are still up 51.4% over 2019, NerdWallet said, and restaurant prices are up 24% over pre-pandemic levels.

"The combination of a global pandemic, economic uncertainty and major changes to how we work have rendered the last few years challenging," Bonam said