Twenty percent of people in the U.S. report spending more on package holidays as well as flights than they did before the cost-of-living crisis. A further 23% of U.S. consumers are spending about the same on package holidays while 22% are spending the same on flights as they were before.
In a striking difference across age groups, it’s the younger generations who are prioritizing their spending on travel. Thirty-three percent of 18-24-year-olds are spending more on flights now, versus just 6% of 45–54-year-olds. When it comes to package holidays, 23% of 18-24-year-olds are spending more, compared to 7% of 45–54-year-olds.
The research findings reveal that forty-one percent of U.S. consumers prefer making their travel-related bookings online, including flight reservations. Additionally, the study also highlights that within the previous month, 60% of American consumers utilized credit cards to pay for their travel expenses, while 46% showed a preference for using debit cards.
However, when abroad, U.S. consumers have budget constraints top of mind. Fifty-one percent are relying on cash to better manage their spending, while 53% are using cash to avoid transactional fees that credit and debit cards offer.
The research was conducted among over 14,000 consumers in Europe and the Americas and over 2,000 people in the US. Commenting on the findings, Rob Gatto, Chief Revenue Officer at Paysafe, said: “Experiences are paramount for consumers despite the cost-of-living crisis and travel is one area where people are willing to continue spending their hard-earned cash, or even increase how much they spend. This is a trend that we are seeing in the US as well as globally.”
