Americans Find New Ways to Stretch Vacation Dollars, First Command Reports
First Command Financial Behaviors Index™ Reveals Americans Are Spending Less This Year on Vacations
With vacation plans in full swing, many Americans are sticking with their frugal spending habits. This year, consumers are finding new ways to experience summer fun while spending less.
“Consumers are still recovering from recent economic setbacks, and they want their decisions to help them become financially resilient in the new economy.”
One in four middle-class families are staying closer to home for their summer vacations this year, according to the June survey of the First Command Financial Behaviors Index™. Nineteen percent of consumers are taking shorter vacations. Only two percent of survey respondents report taking longer summer vacations, and 14 percent are not taking a vacation at all.
“Many families with discretionary income are making cautious decisions about how to allocate their money,” said Scott Spiker, CEO at First Command Financial Services, Inc. “Consumers are still recovering from recent economic setbacks, and they want their decisions to help them become financially resilient in the new economy.”
Many Americans report changes in their summer plans this year, and in 2010 they are utilizing new ways to make their tight budgets work. They include:
- Driving rather than flying to vacation destinations (18 percent)
- Staying with friends rather than staying in a hotel (10 percent)
- Traveling with friends to save money (6 percent)
- Renting a house or condo instead of staying in a hotel (4 percent)
“Consumer confidence is vitally important to travel decisions,” Spiker said. “Increased confidence will translate into a larger commitment to spend. This year, Americans are making plans to be closer to home as another way to cut spending and reduce debt.”
Over one-half of Americans are traveling 500 miles or less for their main vacation this summer. And nearly one in five Americans are staying at home for their summer vacations.
The survey reveals that 45 percent of Americans intend to spend less on summer plans this year. That number is down slightly from 48 percent in 2009.
“Even with the economy’s gradual rebound from the previous year, consumers are hesitant to make large-scale travel plans this summer. They would rather play it safe, and plan activities close to home,” Spiker said.
