COSTA MESA, Calif.—Perhaps not too surprisingly, the majority of vacationers spend more money than expected when traveling (68%), often relying on credit cards to make up the difference, according to a new survey.
The study, commissioned by Experian, also finds that Millennials rank even higher when it comes to risky vacation spending — one-third report they had not been saving up in advance of vacation, 72% say they spend more than expected when traveling, and 52% are strapped with credit card debt once the holiday ends.
“People want to come home from vacation with happy memories, not with unanticipated and unmanageable credit card bills,” said Guy Abramo, president, Experian consumer services. “Racking up excessive credit card debt without a plan to pay it off can put people, especially millennials, in a bind that could affect their financial health and credit status for years to come.”
Survey results show travelers use credit cards over debit cards:
•Lodging: 68% use credit compared to debit cards and cash, 19% and 11% respectively
•Airfare: 67% use credit compared to debit cards and cash, 19% and 11% respectively
•Entertainment: 47% use credit compared to debit cards and cash, 21% and 30% respectively
•Dining: 40% use credit compared to debit cards and cash, 23% and 36% respectively
Budgets and vacations are sometimes conflicting, especially among millennials:
•Forty-nine percent have accumulated credit card debt while traveling (52% of millennials)
•Forty-six percent have paid for a vacation by credit card when they didn’t have enough saved (50% of millennials)
•Thirty-seven percent have cancelled vacation plans due to budget issues (44% of millennials)
•Thirty-three percent of travelers plan to use their tax refund to pay for 2015 summer travel (50% of millennials)
•Seventy-five% say “staycations” are a good way to minimize spending during time off.