The holiday season is approaching, and travel/tours should be picked up, which bodes well for mutual funds that focus on the vacation sector. However, there is one caveat – the weather can affect travel plans.
With oil and gas prices rising, tourists can afford that cost even if they travel to their intended destinations by air, land, or sea. In addition, a rapid increase in interest rates can drive the economy into a recession which can add an extra layer of stress to vacation plans.
“Higher inflation makes 2022 an expensive year, and holiday travel isn’t immune,” NerdWallet said. “Many Americans planning holiday travel are concerned about the growing impact on travel costs and are taking steps to save money before they leave.”
However, fear doesn’t seem to be stopping Americans from traveling the same way the pandemic started in 2020. According to NerdWallet, consumers seem to have their credit cards are ready to pay for the increase in travel costs. . “About two-thirds of 2022 holiday travelers (66%) – defined as Americans who plan to spend money on flights/hotels this holiday season – plan to put some or all of their money away spent on a credit card, paying $ 1,417, on average. . More than $106 billion was spent on credit cards on holiday travel this year.
Regardless of the mode of travel they choose, vacationers are likely to feel the pinch in their wallets.
“Between the economy, the increase in demand for travel and the continuing shortage of workers in the travel industry, the high cost of travel is set to disrupt more budgets this year,” said Sally French, NerdWallet’s travel expert. “Many people have been killed because of the violence at airports and have decided to drive. But due to the high prices of rental cars and gas, a road trip may not be the best option.
Play an Increase in Holiday Travel
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