How much are you planning on spending on travel this holiday season? According to a new study by American Express, if you’re hitting the road or taking to the skies, you’re likely planning on shelling out a whole lot more this year than last year.
The study shows that the same percent of Americans plan on traveling this holiday season (52%). But, among these travelers, the average spending on travel is expected to skyrocket by 151%, up to an astounding $1,521 per person. This compares to an average of $605 per person in the same survey done last year.
The largest reason cited for travel isn’t surprising: “Visiting friends/family for the holidays.” The surprising part is that only 53% of respondents cited this as a reason. Meanwhile, 31% are “treating oneself or family members to a vacation” and 20% seemed to have jumped on a flight deal, answering “I have found great deals for an end of year getaway”.
There are plenty of other interesting tidbits from the study:
12% of respondents listed “Going to lose my vacation days at work” as a primary reason for traveling, indicating these travelers didn’t get away enough the rest of the year.
More Americans are planning to get out of the country this year (23%) vs. last year (18%).
Half of those traveling will do so by air, compared to just 43% last year.
Of those traveling by air, 30% are planning on splurging by “flying first or business class.”
While Amex is generalizing this data to all Americans, there’s a huge caveat buried deep in the study’s methodology: This survey was only conducted among those with a “minimum annual household income of $100,000” — substantially more than the median annual household income of $57,929 (caution: PDF link).
One part of the study that definitely caught our eye is that 29% of respondents indicated they’ll use “credit/charge card rewards points” or “a mix of debit/credit/charge and rewards points” as their primary method of paying for travel. Meanwhile, just 2% cited using “airline mileage points” — likely thanks to the obscene mileage rates charged by some airlines over the holidays.
If you need to stock up on these rewards points for future travel, here are some top cards to consider:
100,000 American Express Membership Rewards points ($2,000 in travel when redeemed at 2 cents per point) from The Enhanced Business Platinum Card from American Express OPEN
100,000 Chase Ultimate Rewards points ($1,500 in travel when redeemed at 1.5 cents per point), plus $300 per calendar year in travel credits from the Chase Sapphire Reserve Card
40,000 Citi ThankYou points ($640 in American Airlines flights), plus $250 per calendar year in travel credits from the Citi Prestige
50,000 points ($500 in travel) from the Barclaycard Arrival Plus World Elite MasterCard
40,000 miles ($400 in travel) through the Capital One Venture Rewards Credit Card
Bottom Line
Among those surveyed, Americans are planning to spend much more on holiday travel this year than last year. Almost one-third of these travelers are planning to use their rewards points or airline miles to help pay for travel over the holiday. Hopefully you’re one of them!
How do your holiday travel plans compare to the survey’s results?
Featured image courtesy of Shutterstock.
Chase Sapphire Preferred® Card
APPLY NOW
Earn 50,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That's $625 toward travel when you redeem through Chase Ultimate Rewards®
Named Best Credit Card for Flexible Travel Redemption - Kiplinger's Personal Finance, July 2016
2X points on travel and dining at restaurants worldwide & 1 point per dollar spent on all other purchases.
Earn 5,000 bonus points after you add the first authorized user and make a purchase in the first 3 months from account opening
No foreign transaction fees
1:1 point transfer to leading airline and hotel loyalty programs
Get 25% more value when you redeem for airfare, hotels, car rentals and cruises through Chase Ultimate Rewards. For example, 50,000 points are worth $625 toward travel
No blackout dates or travel restrictions - as long as there's a seat on the flight, you can book it through Chase Ultimate Rewards
Intro APR
Regular APR
Annual Fee
Foreign Transaction Fee
Credit Rating
N/A
16.24%-23.24% Variable
Introductory Annual Fee of $0 the first year, then $95
0%
Excellent Credit