Americans remained committed to travelling and attending entertainment events this summer despite rising costs, with many households adjusting their spending to make their plans more affordable, according to a Bank of America survey.
The bank’s summer travel survey found that consumers continued to show strong interest in travelling but were becoming more deliberate about how they spent their money.
“People aren’t cutting travel out. Instead, they’re being intentional about where the money goes,” Mary Hines Droesch, head of consumer and small business products and analytics at Bank of America, told FOX Business.
“They’ll splurge on the one thing that makes a trip memorable, whether that’s a great meal, a well-located hotel, or a unique experience and then scale back elsewhere, like a more affordable flight or skipping premium add-ons, without feeling like they gave up what mattered,” Droesch said.
The survey found that some Americans shortened their holidays or combined vacations with trips they were already planning as a way of reducing expenses.
Droesch said shorter “micro-vacations” had become an option for travellers looking for a break without the cost of a longer getaway. About one in five Gen Z respondents said they planned to take shorter trips this year than they had in previous years.
More than half of Americans also planned to travel closer to home, opting to cross state lines rather than spend more on long-haul flights.
Another strategy identified in the survey was “travel stacking”, which Droesch described as “extending a trip already planned around a concert, wedding, or sporting event rather than paying for a separate vacation later.”
Nearly one-third of Americans travelling for live events said they planned to extend their trips to explore the destinations they visited.
Higher fuel costs also affected travel decisions, although consumers responded differently to the increase.
“Rising costs, particularly gas prices, are having a mixed impact this summer. About 23% of survey respondents planned to reduce the number of trips they take, while 31% said fuel costs had no impact on their plans at all. Rather than skip travel entirely, 22% said they planned to cut back on accommodations to offset higher gas prices,” Droesch said.
Bank of America found that 22% of Americans travelling this summer planned to reduce their spending on accommodation and food to help compensate for higher fuel expenses.
Among Americans who decided not to travel, affordability was the biggest reason. Some 56% said they could not afford to travel, while 25% were delaying major purchases because of economic uncertainty. Another 20% said they simply did not like travelling.
Live entertainment also remained a priority for many consumers. Bank of America found that 61% of Americans were willing to make financial sacrifices to attend a live entertainment event.
To afford such events, 26% said they would cut back on dining out, while 18% planned to take on additional work or a side hustle. Another 18% said they would use credit cards.
Financial rewards were also expected to help consumers manage their travel expenses. About 46% of respondents said they planned to redeem rewards during the summer, including credit card rewards and banking loyalty offers.
Gen Z recorded the highest likelihood of redeeming such rewards at 80%, followed by millennials at 60%, Gen X at 35% and baby boomers at 19%.
The survey also showed that consumers were considering the benefits offered by financial institutions when making travel decisions.
About 37% valued credit card rewards bonuses above standard rates, while 30% considered personalised cash-back offers important. Enhanced fraud monitoring while travelling was cited by 28%, while 26% looked for exclusive offers covering travel and premium experiences.
The findings indicate that rising costs have not completely discouraged Americans from travelling or spending on entertainment. Instead, many consumers are changing how they allocate their money to maintain their plans while keeping expenses under control.
