Consumers ready to splurge on trips with travel rewards: report

April 1, 2022

Travelers are saving up their credit card miles for luxury trips. Image credit: Getty Images/NerdWallet

Seventy percent of U.S. consumers are planning on taking a leisure trip in the next 12 months, and nearly a quarter are saving travel rewards for luxury experiences.

According to a new survey by NerdWallet, the COVID-19 pandemic is still impacting consumers’ travel choices. On average, however, U.S. travelers plan to take two leisure trips in the next 12 months.

“For the foreseeable future, COVID has dramatically changed the way many of us plan our vacations by adding new layers of complications,” said Sarah Rathner, travel expert at NerdWallet, in a statement.

“Travel is still full of uncertainty, but that doesn’t mean it’s impossible if you plan for the unexpected.”

NerdWallet’s findings are based on an online survey of more than 2,000 U.S. adults conducted by The Harris Poll.

Ready to travel
In the next 12 months, 47 percent of respondents plan to take at least two or more leisure trips.

Sixty percent of Gen Z travelers and 58 percent of millennials are planning more than one vacation in the next year. In contrast, just 41 percent of Gen X and 40 percent of baby boomers are following suit.

Many consumers want to travel with their families this year. Image credit: Natalya Zaritskaya/Unsplash

In preparation for their travel plans, 77 percent of consumers with travel rewards credit cards are saving up their miles or points rather than redeeming them as they are earned.

Twenty-three percent are saving their rewards for a luxury trip or special occasion. About one in six travelers are accumulating their travel rewards for an international trip.

Although the pent-up demand for travel remains high, 56 percent of respondents admit their travel habits have changed since the start of the pandemic.

Nearly a third currently only visit destinations that are low-risk for COVID-19. Twenty-eight percent have stopped traveling internationally, opting for domestic trips instead, while 27 percent no longer take cruise vacations.

A quarter of travelers are only taking trips to locales that require COVID-19 testing and proof of vaccination.

More than 60 percent of U.S. consumers feel more comfortable traveling with certain pandemic precautions in place.

International travel still remains limited. Image credit: Virtuoso

The preferred precautions include low COVID-19 case counts and cleaning and sanitization of hotel rooms or rental properties between guests, with both conditions cited by 38 percent. About 30 percent prefer hotel staff or airline employees be required to be vaccinated, while 28 percent are more comfortable somewhere with rapid tests widely available.

Only 15 percent reported that they do not feel comfortable traveling at all in the current climate.

Trip planner
After more than two years of life during COVID-19, travel is already picking up — however, the hospitality industry has not yet returned to pre-pandemic levels.

According to vacation rental management company Vacasa 56 percent of U.S. consumers are planning a trip sometime this spring, with 37 percent planning travel during spring break. For those still working remotely, the likelihood of travel skyrockets to 86 percent as these individuals yearn for environments beyond the confines of their homes.

This spring, 75 percent of American travelers are planning domestic trips and 23 percent are looking into staycations. With uncertainty still looming regarding the COVID-19 pandemic, only 18 percent are planning international trips (see story).

Affluent travelers in particular are prioritizing personalization and privacy for their 2022 trips.

According to new research from hospitality network Virtuoso, 76 percent of travel advisors have seen an increase in “ultra-luxe travel.” The increase is reflective of the pent-up demand for travel, as affluent consumers have been craving exclusivity, unique experiences and trips to celebrate milestones or long-desired excursions (see story).

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