(Forbes - Advisor) - Americans were committed to traveling in 2022. The appeal to reconnect with loved ones, get a change of scenery and possibly even use vouchers or credits from trips canceled by the pandemic outweighed any exasperation from high prices or difficult transit experiences.
Americans Plan To Travel More in 2023
Now that we’ve made it through the initial push of revenge travel, there’s reason for travel demand to slow down. Continuing inflation, mass layoffs and a potential recession are impacting households. Yet, 2023 travel trends show no slowdown. To learn more about travel intentions and what adjustments—if any—they’re making to plans, Forbes Advisor surveyed 1,000 Americans who plan to travel this year.
Despite the challenges that came with traveling last year, Americans still intend to travel in 2023. A resounding 87% of survey respondents expect to travel at least as much as they did in the prior year, with 49% selecting that they expect to travel more. This is especially true among younger respondents, with 59% of those between the ages of 18 to 26 planning to travel more in 2023. This is impressive considering 45% of respondents traveled once or twice in 2022, with 42% traveling three or more times in 2022.
All types of trips remain popular for the coming year, though visiting with friends and family leads the list. Over half of respondents expect to take leisure trips to see loved ones. Road trips, beach vacations and trips to celebrate life events or milestones such as a birthday or anniversary were also popular vacation options.
Inflation’s Impact on Travel
In order to afford all this travel, Americans understand it will cost them. According to the survey, 45% of respondents are allowing for a higher travel budget in 2023 than they spent in 2022. A little more than a quarter of respondents (28%) said their budgets would remain about the same this year as last year. Most respondents (49%) expect to spend $4,000 or more on travel during the calendar year, with another 28% budgeting between $2,000 to $3,999.
Preparing a healthy budget doesn’t mean Americans are immune to inflation, though. While it’s not the majority of respondents, 46% selected that they are likely or very likely to change their plans due to inflation. Of these respondents, 23% noted that they will travel during the off-season and 21% selected they’ll even consider alternate destinations in search of better value. Some of the best places to travel in 2023 are lesser-known with lower prices.
Credit Cards Remain a Resource for Travelers
Over half (51%) of travelers use credit cards to pay for leisure trips and vacations. Debit cards were the second-most common form of paying for travel, with 41% of respondents preferring to pay this way. Interestingly, just over a third of survey respondents also mentioned that they use cash to fund travel, either exclusively or in conjunction with other payment methods.
For cardholders that can pay their bill on time and in full, paying by card can be a strategic tool. Our survey showed that 66% of travelers paying with plastic have a card offering travel benefits. The most commonly used card benefit was an annual airline credit to offset costs, though other benefits included hotel credits, free checked bags and airport lounge access, among others. Younger travelers (73% of Gen Z and 75% of millennials) were more likely to have travel credit cards.
Navigating 2023 Travel
Unfortunately, we anticipate many of the same recent travel challenges to spill into 2023: crowds, high prices and flight disruptions. These headaches aren’t entirely unavoidable, although there’s a lot you can do to make your next trip easier.
In many cases, the tricks to save money on airfare haven’t changed. Some airline credit cards offer discounts to cardholders. However, there are a few new tricks on how to plan a trip in 2023 as well, including canceling and rebooking flights if prices drop to take advantage of lower fares.
As many of our survey respondents have already learned, using travel credit cards can save you money. Included travel insurance can make inevitable missed connections and flight cancellations more of an annoyance than a major setback or cover your expenses while you wait for lost or delayed luggage to be found. And reimbursements toward CLEAR, Global Entry or TSA Precheck will save you time during airport security or passport control.
One thing our survey respondents didn’t overwhelmingly mention was using travel rewards to improve their travel experience. Learning how to earn and redeem points efficiently is a process but one that (literally) pays off. If you’re just getting started, or want to brush up on your skills, our top travel rewards tips have been refreshed to be relevant in 2023.
Bottom Line
Even among financial uncertainty, Americans haven’t pumped the brakes on travel. Survey respondents have carved out money from their budget for trips and are willing to make some sacrifices if necessary to beat inflation. Though both daily life and travel may get more expensive, there are still ways to plan a vacation in 2023 at a cost you can live with.
By Becky Pokora - Forbes Advisor Staff
March 28, 2023
