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Higher costs are making vacations less attainable. Read on to see how your credit card might be your answer to taking the trips you want to go on.
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Although inflation has cooled pretty nicely since raging throughout 2022, it’s still a problem for a lot of consumers. And it’s causing them to rethink the way they spend their money.
In fact, inflation is the primary reason why consumers today are hesitant to travel, according to data from Barclays. Higher costs for airfare, lodging, and dining are making it harder for people to pick up, pack up, and explore new corners of the world.
If you’ve had to put off travel plans due to higher costs, you may be bummed about the fun you’ve been missing. But before you give up on travel this year, see if your credit cards can help make it possible.
Reward points can offset your costs
Many credit cards today offer generous reward programs. If you have reward points banked, you can potentially redeem them for things like free hotel stays. Or, you can redeem those rewards for cash that you use to cover your travel expenses.
Better yet, some credit cards offer bonus rewards for expenses incurred in the course of travel. For example, you might get 2% back at hotels or 3% back on restaurant purchases. So if you charge your next trip on one of your credit cards, you might quickly replenish your rewards balance.
Travel credit cards can come loaded with money-saving perks
The type of credit card you use can also make a difference in the cost of your trip. Specifically, travel rewards credit cards tend to come with money-saving benefits that could make your next adventure less expensive.
It’s common for airlines to charge a fee for checked bags. On Delta, for example, you’ll pay $30 each way to check a bag for a domestic flight. If your travel rewards credit card gives you a free checked bag per leg of your journey, you might save yourself a nice amount of money — especially if you’re traveling with family or friends.
Your travel rewards credit card might also come with benefits like airport lounge access. If you have a long layover, getting to sit in a lounge and eat free food can be a source of savings as well as comfort. You might also be eligible for discounts on in-flight purchases with a travel rewards credit card, so if you have no choice but to eat dinner on a plane, you might pay less for it.
It’s not so surprising to see that consumers are hesitant to travel because of higher costs. And to be clear, it’s a smart thing to cut back on travel if you feel you can’t easily swing the expense right now. It’s much more important to be able to pay your rent and put food on the table than see a new city or country. And you don’t want to rack up expensive debt simply to take a vacation. But if you make the most of your rewards credit cards, you might find that a 2023 trip is in the cards — even if you’ve already resigned yourself to putting off travel until 2024.
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