Nearly 60% of Americans Expect a Recession in the Next 6 Months. Here’s How It’s Affecting Their Travel Plans

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Even with a rocky economy, travelers are still cautiously optimistic. 

A potential recession was a hot topic in 2022, and by the end of the year, the majority of Americans were expecting one. Nearly 60% of Americans believed the United States would enter a recession in the next six months, according to a December 2022 survey by Destination Analysts.

During times of economic uncertainty, people often cut discretionary spending. Leisure travel certainly fits into that category, but does that mean you should hold off on booking a trip for the time being? Not everyone’s taking that approach, and depending on your financial situation, you might not need to, either.

How a possible recession is affecting Americans’ travel plans

People are still planning and booking travel, despite the economy. They are, however, being cautious about how much they spend. In Destination Analysts’ survey, 64.7% of all travelers said that they were being more careful with their money.

To stretch their travel dollars further, nearly three-quarters (74.4%) of Americans said that travel deals and discounts were more important to them than they were six months prior. And that’s not the only way people are saving on travel. Nearly 31% of Americans said they had used credit card points for travel-related purchases in the previous 12 months. Most who used points from their credit cards redeemed them for airfare and hotel stays.

Should you wait to travel due to recession fears?

When there’s so much talk of a recession, you may feel nervous about the idea of spending money on travel. If you’re in a stable financial situation, there’s no need to put your travel plans on hold.

No one knows for sure if a recession will happen, and there have been some positive economic indicators lately. The U.S. economy grew 2.9% in the fourth quarter of 2022. There were also 517,000 jobs added in January, and unemployment hit a 54-year low. On the other hand, inflation numbers were higher than expected in January. The reality is that it’s impossible to say whether we’ll have a recession or not.

What’s important is that you’re in a good place financially before you travel. Here’s what that means:

You can pay for your travel without going into debt. It’s hardly ever a good idea to take on debt to pay for a trip. Consider setting up a savings account specifically for travel expenses to use as your travel fund.You have sufficient emergency savings. Financial experts generally recommend having an emergency fund with at least three to six months of living expenses.

It also never hurts to look for ways to save on travel. Shop around for deals and discounts, like most Americans are doing. Keep in mind that you can also sign up for deal alerts with airlines, hotels, and online travel agencies. If you haven’t already, look into travel credit cards as well. With one of these, you could potentially travel for free with credit card points.

Travel shouldn’t be a financial strain, which is why it’s best to build a travel fund and an emergency fund first. If you have those in place, then you don’t need to wait around to go on a trip just because of recession fears.

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The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.Lyle Daly has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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