MILWAUKEE (CBS 58) — You may have heard about revenge spending, but what about revenge travel?
With many COVID-19 Pandemic restrictions lifted, travelers are eager to make up for lost time this summer.
Local financial professional Tom Neumann from Drake & Associates, LLC. appeared on the CBS 58 Morning News to share how you can enjoy a trip without breaking the bank.
Here are some tips from Drake & Associates
Revenge travel is a trend that refers to consumers’ increased eagerness to spend lots of money on travel after months of canceled plans and shutdowns due to the pandemic. With many countries lowering travel restrictions, demand is soaring for vacations with 65% of Americans planning to take a trip. Plus, people have saved up cash from trips that were put on pause due to the pandemic.
According to Google, searches for passport appointments were up 300% at the beginning of the year and many luxury travel services are seeing an explosion of bookings. On average, travelers are prepared to pay $600 more per trip compared to last year.
Neumann says splurges actually be a good motivator to help you stick to a budget. Think of it like being on a diet – you need to treat yourself every now and then or you won’t stick with it. But make sure when you splurge it doesn’t derail any of your long-term goals, like paying off debt or saving for retirement.
Saving Money During Trips
- It may help to find a more unique destination. At the beginning of 2022, travel bookings to sunny destinations like Florida, Hawaii and Mexico increased by 211% compared to last year. Picking a less popular vacation spot will save you money on travel costs, while also allowing you to discover some hidden gems off the beaten path.
- Renting through AirBNB or VRBO can help keep costs down, as well, especially if you split a larger house with friends or family. Plus, having access to a kitchen allows you to cook your own meals instead of going to a restaurant for every meal.
- With the cost of food and fuel rising, take advantage of coupons and loyalty programs to help keep costs down. Booking your trip through a travel agent can be a great way to score a deal because they often offer savings by bundling your travel, stay and activities.
- When it comes to paying for your flights and excursions, make sure you’re getting the most out of how and when you pay. It might be worth it to use a credit card with travel rewards, especially if you plan on traveling frequently, to earn points for future trips. If you do use a credit card – be careful! Make your payments on time, otherwise you may lose out on those benefits.
- Booking and paying for your trips early can help save money too. Booking 1-3 months ahead for domestic travel is recommended to avoid higher prices.