Study Shows That Americans Are Still Going On Vacation Even Though Most Can't Afford It
Research showed that people would be willing to go into debt just to experience a relaxing vacation.
PeopleImages.com - Yuri A | Shutterstock The urge to lie on a beach on a tropical island drinking a Mai Tai or Piña Colada and ignoring all of life's problems is something everyone dreams of. Vacations offer travelers a chance to fully relax and recharge. However, an unstable economy and high cost of living have most people unable to afford groceries, let alone a vacation.
It's surprising that people are still booking these trips, but according to a new study, it seems they're not letting money get in the way of having a good time.
Study shows that Americans aren't willing to forgo vacations even though most can't afford it.
According to Allianz Partners USA's 16th Annual Vacation Confidence Index, taking vacations reached an all-time high in 2024 despite the state of the economy and the large percentage of people who are struggling to make ends meet.
The study found that even though 47% of Americans said they can’t afford a vacation this year, 49% said they are likely to travel anyway.
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Breaking it down by generations, when it comes to the commitment of getting away, younger travelers ages 18-34 (71%) continue to express the highest confidence in taking an annual vacation, 35–54-year-old travelers show more confidence this year at 70%, while 55+-year-olds are now 65% confident they will take a vacation sometime in 2024.
Citing the reason why so many individuals are keen on getting away in some capacity, a growing number (73%) say they are in desperate need of a vacation.
While half (47%) of Americans said that they can't really afford a vacation this year, 49% shared that they are likely to travel anyway.
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This has sparked a new travel trend: the justified vacation or "justi-vacation," when someone takes a vacation despite not being able to afford the expenses that come with traveling.
It's clear that from people's insistence on unplugging from daily life and taking a vacation, many individuals are exhausted. They're refusing to let money get in the way of having a good time, and with the state of the economy domestically and globally, people are choosing to prioritize themselves instead of letting burnout take hold.
It speaks to the fact that people are searching for a little bit of serotonin and dopamine where they can get it, and vacations seem to be the best solution.
People are willing to go into debt just to experience a getaway where they can relax and disconnect from their everyday tasks.
A 2024 Bankrate survey found about half (53 percent) of Americans planned a summer vacation in 2024. Of those, more than 1 in 3 (36 percent) were willing to go into debt to pay for it.
It's definitely easy to spend money on a vacation with the promise that you'll be able to pay it back in time, whether that's booking a flight on a credit card, or dipping into savings just to spend a week in a tropical place.
However, there should also be a bit of wariness when it comes to spending money just for a vacation.
As it stands, more Americans — 50%, according to Bankrate survey data — are carrying a credit card balance than they were in 2020.
It's understandable that people are yearning for a vacation, but there are definitely ways to relax and have fun without breaking the bank or missing out on a rent payment.
Staycations, road trips, or even a weekend trip to a local beach can fulfill that wanderlust just as much as catching a flight to the Bahamas. If you can't afford to go on a lavish vacation, it might be better to save money and book something a little cheaper because even though you'll have the time of your life during that week-long beach outing, it might not be worth it once you come back home and the fridge is empty.
Nia Tipton is a Chicago-based entertainment, news, and lifestyle writer whose work delves into modern-day issues and experiences.