Thirty-two-year-old Ryann Checchi is preparing for a trip to Lisbon, Porto, and Barcelona, despite not having enough money. She believes the mental benefits of the trip outweigh the financial burden. Many Americans share her sentiment, with 36% of summer travelers willing to go into debt to finance their vacations, up from 27% just a month earlier.
Nicole Cueto, a travel agent, attributes this trend to social media-induced FOMO, feelings of burnout, and dissatisfaction with the current state of US politics. Despite financial constraints, 47% of Americans cannot afford a vacation this year, but 49% still plan to travel. The 16th annual Vacation Confidence Index by Allianz Partners USA highlights this willingness to prioritize vacations over financial stability.
This behavior has been dubbed “justi-vacation,” with 68% of Americans expressing confidence in taking a vacation in 2024, the highest level since 2009. However, this optimism may not align with the financial realities faced by many Americans, as pointed out by Mexican influencer Angel De La Rosa.
The reliance on credit cards to fund summer vacations is a concerning trend, as revealed by a NerdWallet survey. 20% of summer travelers plan to carry over credit card balances, incurring costly interest charges. A LendingTree survey found that 45% of parents with young children have gone into debt from visits to Disney parks.
Despite these financial challenges, the majority of summer travelers are actively seeking ways to reduce expenses. More people are opting to drive instead of fly, possibly due to lower gas prices. While it’s important to create lasting memories through travel, it’s equally crucial to maintain financial responsibility in the long run. Balancing the desire for adventure with fiscal prudence is key to avoiding long-term financial implications from vacation debt.