Thirty two-year-old Ryann Checchi is gearing up to travel to Lisbon, Porto, and Barcelona on Sunday - even though she can't afford it. The PR professional explained that she feels justified in taking the trip despite her financial limitations, claiming she "needed it — mentally more than anything."
"I needed something to look forward to, and that alone justifies it for me," the Phoenix resident added. "I'd rather be on a budget for a month when I get home, if needed, for a lifetime of memories with girlfriends and happiness."
Checchi isn't alone. A Bankrate survey revealed that 36 percent of American summer travellers were willing to incur debt to fund their vacations, a notable increase from 27 percent just a month earlier.
According to travel agent Nicole Cueto, social media-induced fear of missing out, feelings of being "burnt out," and the state of US politics are the primary reasons vacationers are willing to ignore financial caution. "Given the state of affairs in the US surrounding politics and the election, people are using this to explore other countries to see what other options are out there," Cueto said.
The numbers say it al: Despite limited financial resources, financially strapped Americans are actually willing to incur debt to fund their vacations. In fact, 47 percent of Americans reported being unable to afford a vacation this year but 49 percent indicated their intention to travel regardless. This is according to Allianz Partners USA's 16th annual Vacation Confidence Index findings.
Americans Prioritise Vacations Over Finances
This trend of prioritising vacations despite financial constraints has become increasingly prevalent, leading to the term "justi-vacation" or "justification" to describe the behaviour.
The travel insurance provider's most recent survey revealed that a substantial 68 percent of Americans expressed confidence in taking a vacation in 2024, marking the highest level of optimism since the survey's inception in 2009.
These figures appear to contradict the financial realities faced by most Americans, as highlighted by a recent TikTok video from Angel De La Rosa, a Mexican social media influencer who explained why Americans might be experiencing a more significant financial burden than they perceive – potentially even surpassing the challenges faced by Mexicans.
The Dangerous Trend Of Vacation Debt
With limited savings, many travellers are turning to credit cards to finance their summer vacations, a NerdWallet summer travel survey reveals. Most respondents reported planning to use plastic for at least a portion of their trip expenses.
One of the key findings suggests, "1 in 5 summer travellers (20 percent) say they'll use a credit card to pay for their travel expenses, but won't pay off the balance within the first billing statement. Instead, they'll carry over the balance, possibly racking up costly interest charges."
A LendingTree survey underscores this spending trend, finding that 45% of parents with young children have incurred debt from Disney park visits. However, the summer travel survey offers a glimmer of hope.
According to the survey, the majority of summer travellers (91 per cent) are actively seeking ways to reduce expenses. A notable shift is an increase in those choosing to drive rather than fly (42 percent from 35 percent in 2023), possibly attributed to declining gas prices.
The willingness to dip into savings or even rack up debt for a vacation is a concerning trend with potential long-term financial implications. While finding ways to save on travel expenses is commendable, balancing unforgettable memories and fiscal responsibility is crucial.
