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How To Save Money On Travel This Winter Despite Inflation And Rate Hikes
The busiest travel time of the year is quickly approaching, but it may look different due to inflation. WalletHub, a personal finance website known for its studies and surveys, recently released the findings of its 2022 Winter Travel Survey. The website also updated its list of the Best Credit Cards for Winter Travel as well as money-saving tips for domestic and international travelers.
Travel tip: if you apply for the right credit card now, you’ll have enough time to earn up to $750 in free travel this year.
One of the findings from the 2022 Winter Travel Survey is that 40% of travelers say the Federal Reserve’s rate hikes will affect their winter travel plans.
Jill Gonzalez, WalletHub analyst says, “Forty percent of people say the Federal Reserve’s rate hikes will affect their travel plans this winter, according to WalletHub’s 2022 Winter Travel Survey.”
She continues, “The average household has around $8,558 in credit card debt, and people’s balances are getting more and more expensive thanks to recent Fed rate hikes, leaving travel budgets bare. People with credit card debt are expected to pay $20.9 billion more than they would have absent any Fed hikes.”
Takeaways from the survey:
69% of travelers are worried about inflation when booking travel
Of those surveyed, 69% say they are worried about inflation when it comes to booking travel.
“People simply have less money left to spare for luxuries like travel when the prices of everyday items are inflated,” says Gonzalez. “Even trying to economize by taking a road trip rather than flying is unlikely to provide much relief. Nearly 60% of people say that gas is too expensive for a road trip this winter.”
Travelers are looking to credit cards to save money on travel
To save on travel, 1 in 4 people are planning to apply for a new credit card.
“A new WalletHub survey found that 55% of people are planning to use credit card rewards to help pay for a trip this winter. Using rewards you have saved up is a great way to keep your new expenses to a minimum, but its important to make sure you’re not sacrificing value by redeeming for travel. You should be able to easily determine the value of your rewards with each redemption method available to you via your online account,” says Gonzalez.
High gas prices deter travelers from road trips
Almost 60% of people say that gas is too expensive and are avoiding road trips this winter.
Tips for taking advantage of credit cards this winter:
According to WalletHub’s updated Best Credit Cards for Winter Travel list, the best travel credit card of 2022 is Capital One Venture Rewards Credit Card. The card’s initial bonus is worth $750 in travel and double miles on all purchases as well as a reasonable annual fee.
“People looking to take advantage of credit card perks this winter should definitely consider applying for a new card. There are a few different reasons why getting a new card is a money-saving mood,” Gonzalez shares.
- Credit cards are offering great initial rewards bonuses, which could end up paying for seasonal expenses and winter travel
- You can take advantage of a 0% introductory APR credit card offer that can save on interest
- Getting a credit card with no foreign transaction fees can save you up to 9% compared to exchanging currency
- Credit card offers may get less attractive if the economy worsens
Read the full 2022 Winter Travel Survey here.