I dream about escaping the below freezing temperature of Pennsylvania in the winter. More so around February time frame. I get sick of the snow, ice, bad roads, layering, shoveling, short days, etc. There are a lot of factors that play into us not being able to do that though.
For us all 4 of our kids are in school so they would have to miss school. Then there is requesting time off from both our places of work and hoping both of use get approved. Add in the fact that we provide Christmas for 4 kids and the financial aspect is there too.
Travel is something my husband and I want to do closer to retirement. For now we just do a family vacation every other year, usually to a beach on the east coast.
Wallethub collected some states on winter travel. Here are some of the highlights:
- 4% more people are planning to travel this winter than last winter, and 79% of them are planning to spend at least as much as last year.
- 1 in 3 people don’t plan to travel this winter, and 38% of them – a total of 33 million people – say they can’t afford it.
- Millennials are 6X more likely than baby boomers to apply for a new credit card to save on winter travel.
- Weather and cost are the leading concerns for more than 8 in 10 winter holiday travelers.
- Capital One Venture is the best credit card for winter travel because it has an initial bonus worth $500 in travel for spending $3,000 in the first 3 months and gives at least double miles on all purchases.
Q&A with WalletHub CEO Odysseas Papadimitriou
What do WalletHub’s survey results indicate about how confident consumers feel economically?
“The results of WalletHub’s Winter Travel Survey show reason for economic optimism in the sense that slightly more people are planning to travel this year than last year, and 79% of winter travelers say they’re going to spend at least as much as they did last year,” said WalletHub CEO Odysseas Papadimitriou. “When people are feeling strain financially, you generally don’t see travel increase.”
Why do you think so many people say they can’t afford to travel this winter?
“It should be no surprise that 33 million Americans say they can’t afford to travel this winter. Even though unemployment is near record lows and the stock market is near record highs, there are a lot of things weighing on consumers financially right now. For one thing, we’re racking up credit card debt at a pace reminiscent of the run-up to the Great Recession. Student debt clearly is a problem. And there’s a lot of political uncertainty,” said WalletHub CEO Odysseas Papadimitriou. “It’s also important to point out that people who recognize they can’t afford a big trip are doing the smart thing by staying home and saving up. Far too many people think a vacation is a necessity worth going into debt for.”
Is it worth paying an annual fee for a credit card in order to get better perks?
“It is worth paying an annual fee on a credit card if the card in question will save you more money at the end of the day, after factoring in the fee, than the best no-annual-fee alternative. Unfortunately, the results of WalletHub’s new survey show that only one-third of consumers seem to recognize that,” said WalletHub CEO Odysseas Papadimitriou. “You don’t want to pay for a card if you’re not going to get your money’s worth. But you don’t want to automatically rule out cards with annual fees, either. They can be worth the investment and then some. For example, the average person could earn more than $1,000 in net rewards value – after subtracting annual fees – with the best travel credit cards over just two years of use.”
Why are millennials so much more likely to apply for a credit card to get winter-travel savings than baby boomers?
“Most millennials have grown up in the age of free credit scores and reports, and online credit card comparison. So they may be a bit more comfortable applying for new credit cards, seeing their credit scores dip then recover, switching billing information for services they pay for with their cards, etc. Younger people also tend to be more cash-strapped than older folks, which makes them more inclined to look for savings opportunities,” said WalletHub CEO Odysseas Papadimitriou.
So do you do any winter travel? Do you have any winter travel plans this year?
