How do consumers pay for travel?

How did you spend your Summer of Revenge Travel ?

After two years lost to the pandemic, millions splurged on lavish trips as travel restrictions loosened this summer, eager to make up for lost time. For many, that meant making plans they couldn’t actually afford. Take that, financial security!?

Hearing about so many people throwing caution to the wind and booking trips they couldn’t pay for inspired us to dig deeper on consumer travel behavior in a new survey. And we did not expect what we found…

MOST PEOPLE SAVE FOR VACATIONS

First, the good news: when it comes to vacations, most people aren’t as undisciplined as revenge travel would suggest. 82% of Americans currently planning a trip are saving up for it. On top of that, over one-third of people currently saving for a vacation don’t even have one actually planned. And nearly two-thirds of people saving for travel start at least 4 months in advance. Good job, y’all!?

… BUT MOST DON’T DO IT WELL

Unfortunately, how well they’re saving is a different story. The most popular ways to save for a vacation are by leaving extra money in a checking/savings account or by simply stashing cash away. These methods leave people particularly vulnerable to that great hallmark of travel: hidden and unexpected fees .

Those fees are one reason why almost 1 in 5 consumers — and nearly 1 in 4 men — have gone into debt because of a vacation. 81% of consumers who do so incurred over $500 worth of debt. Yeeeeikes!

The biggest surprise from our survey, though?

NO ONE USES MILES OR POINTS

We won’t lie, this was a shocker at first glance. There’s a whole cottage industry of Points Guy-style websites comparing the best credit cards for travel benefits. And if the 10,000 cold emails and snail mails you get daily hawking the latest travel card were any indication, you’d think everyone used points.

But our data shows that only 8% of people actually plan on using points to pay for their next trip, while only 6% plan on using miles. And if you’ve ever actually tried, you probably know why. Between the wildly buggy Rewards websites of every major credit card company — which of course are entirely separate from the main sites you use to do literally everything else related to the card — and the limited numbers of flights or airlines available in these programs, the whole setup is kind of a nightmare.

In other words, most travel rewards programs go out of their way to make the process as difficult as possible. And that’s not even factoring in the low “exchange rate” of points, which are typically worth anywhere from 1-1.25 cents. How generous…

It’s clear that current “savings” methods offered for travel – points and miles – are failing consumers. That means more people are vulnerable to incurring debt if they don’t prepare the right way.?

Which begs the question: if miles and points don’t work, what does?

The first answer is structure and discipline when it comes to saving. It may sound simple, but this advice will take you a long way. There are also plenty of vacation budgeting worksheets and resources online — not to mention apps — that can help here; you just have to stick to your savings plan.

The second answer is to do your research. It's crucial that travelers go out of their way to compare the best options and use the right resources, because as hard as it may be to believe, there are still plenty of travel-related companies on the consumer’s side. Here are three that actually want to help:

Booking.com: In our survey of travel websites, Booking.com was tied for first choice to book travel among Gen Z and second across all age demographics. Of the options available, it stands alone in helping consumers bundle their travel and find the cheapest rates for accommodations, flights, car rentals, and more. But the most useful feature is its “budget” filter, which allows travelers to search for the lowest prices for their plans .

Great Wolf Lodge: Who doesn’t like a water park? These resorts aren’t just fun for the whole family, they’re also easy on wallets. Great Wolf Lodge has a PAW Pass that bundles its most popular attractions and amenities, saving customers over 30% . Its website also gives travelers extensive tips on how to save, such as by booking trips starting on Sunday — when the resort is less busy — as well as how to take advantage of offers like AARP and AAA deals.

Orbitz: We spent a good part of this Savings Scene dunking on rewards programs, but sometimes they really do deliver. That’s the case for Orbitz, which has a platinum membership program that allows people to save on baggage fees, airport WiFi, TSA Precheck, and more — exactly the kinds of stuff that any seasoned traveler will tell you adds up. The best part? Platinum members also receive $50 back a year for everyday travel expenses .

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