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A survey by consumer finance company Bankrate finds that fewer Americans are planning to travel for a summer vacation this year
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Bankrate found 46 percent of respondents said they are planning to take a vacation
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That's down from 53 percent last year at this time. More than two-thirds, or 65 percent, said that money is the key reason, checking the response that says, I can't afford it
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Ten percent say they are planning a staycation instead. Bankrate dug deeper into the research and found 68 percent said the cost of everyday life was a bigger factor than the actual cost of going on vacation, which was 64 percent
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Twenty nine percent said they have too much debt right now to pay for a vacation
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There are still a lot of people on the fence about their summer plans, with 23 percent saying they are unsure
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That's up from 18 percent unsure in 2024. Ted Rossman, a senior yst at Bankrate, told CNBC
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recent tariffs and fears of a possible recession are causing more people to pause and wait when planning their summer Quote we seeing more layoffs and the potential for higher prices which has many people on edge
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End quote. The numbers spell possible bad news for the airline industry. The Wall Street Journal
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reports that Southwest Airlines has reduced its 2025 business projections due to a reduction in
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demand and uncertainty about the economy. It reported a net loss in the first quarter of
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$149 million, as sales, particularly for domestic leisure travel, fell. The journal reports Delta
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and United posted profits in the first quarter of 2025. However, both airlines say they expect
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slower growth in the second half of the year. Delta has now scrapped its guidance for the year
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due to economic uncertainty. The journal report indicates with consumer confidence falling
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and fears of an economic downturn, the major airlines are now relying on wealthier flyers
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who are willing to spend more money to sit in premium seats. For more unbiased updates, download the Straight Arrow News app
