Americans aren’t in the mood to spend much on travel this summer. More people are expected to hit the road than did last year, the Associated Press reports, but their budgets will be tighter because of high unemployment, stock markets in retreat and a still-fragile economy. AAA estimates families will spend an average of $809 on summer travel, compared...
Americans aren’t in the mood to spend much on travel this summer.
More people are expected to hit the road than did last year, the Associated Press reports, but their budgets will be tighter because of high unemployment, stock markets in retreat and a still-fragile economy.
AAA estimates families will spend an average of $809 on summer travel, compared with $876 in 2009, even though flying is more expensive than it was a year ago.
They’re knocking down the cost, travel agents say, by staying closer to home, choosing less-expensive modes of transportation or by picking destinations based on the best fares and lodging they can find.
Steve Piraino, senior economist at IHS Global Insight, said his firm attributes the caution about expensive vacations to high unemployment, still hovering near 10 percent.
Hotels and resorts are trying to entice people into longer stays with lower rates or discounts to restaurants and spas. As a result, the average room rate is down slightly to about $95, according to travel research firm STR. It was $107 just two years ago.
The vast majority of Americans drive to their summer vacation spots, and they should get a break at the pump in the weeks ahead. The nationwide average for gas is $2.76 a gallon, and analysts think it could fall as low as $2.65 by July 4.