On average, 75% of taxpayers receive a tax refund, though this year, an even higher percentage of Americans will receive checks. According to the IRS, the average refund check per person will also be $1,963.
And after two years of the pandemic, traveler demand continues to rise, with U.S.-origin personal flight bookings on Navan for spring travel up 38% YoY. Meanwhile, January 2023 recorded the first full month in which traveler throughput volume exceeded the same month in 2019, according to TSA. This upward trend is just beginning, as Spring Break 2023 is expected to set new records for U.S. travel and 2023 is shaping up to be the first full year of “normal” travel since the pandemic started.
Also on the rise? Flight prices. Navan data shows the average domestic round trip flight booking price for February 2023 is $451 — up 22% (or $80) from February 2022.
So with a recession top-of-mind and demand and airfare on the rise, we couldn’t help but wonder how Americans would cash in their return. So we asked.
While the plurality of respondents indicated they would bookmark their return for savings, a quarter of respondents (25%) said they would spend their return on travel or a vacation.
To help travelers see where they can stretch their tax refund the farthest in 2023, Navan dug into its flight booking data to find the top 20 international destinations for U.S.-origin flights that have an average round trip flight price below the tax refund average of $1,963 for travel this spring. And whether your 2023 refund is $500 or $5000, there’s an option for everyone with the itch to get away.
For those looking to go on a longer trip, flights to European hotspots like Amsterdam, Berlin, Barcelona, Paris, and London are all averaging booking prices within the tax refund average.
For thoseIf you’re looking to stay closer to home, Toronto, Montreal, Mexico City, or San Jose, CR, could be the perfect getaway. And, if you’re in the mood to kick back and relax at the beach, Punta Cana, Cancun, MX; San Jose Del Cabo, MX; or Puerto Vallarta offer some tropical options.
For those looking to go on a longer trip, flights to European hotspots like Amsterdam, Berlin, Barcelona, Paris, and London are all averaging booking prices within the tax refund average. For thoseIf you’re looking to stay closer to home, Toronto, Montreal, Mexico City, or San Jose, CR, could be the perfect getaway. And, if you’re in the mood to kick back and relax at the beach, Punta Cana, Cancun, MX; San Jose Del Cabo, MX; or Puerto Vallarta offer some tropical options.
Methodology
Navan analyzed US-origin flight bookings with a start date of March 1, 2023 – May 31, 2023 with a booking window of January 1, 2023 – February 22, 2023. Survey: Navan polled U.S.-based Navan Personal Travel users between Mar 1 –Mar 3, 2023, about how they plan to use their 2023 tax refund.
Tags: Navan
