Travel insurance and assistance provider Allianz Partners USA has published its 15th Annual Vacation Confidence Index (VCI) revealing that Americans’ total spend on summer holidays is likely to cross the $200 billion mark for the first time.
It is projected to reach $214 billion this summer, representing a 10 per cent increase over 2022, a 39 per cent increase over 2021, and a 261 per cent over 2020. In fact, this figure is an 111 per cent increase on pre-pandemic spending in 2019.
According to this year’s VCI, Americans have doubled their summer holiday spending over the last four years. In 2023, the average American household is anticipated to spend an average of $2,830 on their summer holiday, topping the $2,000 mark for the fourth time since Allianz Partners began tracking vacation habits in 2009. Three years after the pandemic, average expected vacation spending per household has increased by almost $1,000, marking about a seven per cent increase over 2022, a 33 per cent increase from 2021, a 50 per cent increase from 2020 and a 39 per cent increase from pre-pandemic 2019 levels.
“We expect to see a record-breaking number of American travellers this summer, and whether heading near or far, increased traveller numbers can mean an increased chance of travel delays,” said Daniel Durazo, Director of External Communications at Allianz Partners USA. “While a devilish mix of inflation and strong demand have kept travel prices elevated, as our survey found, Americans are still willing to pay top dollar for a well-earned summer vacation. Protecting pre-paid expenses with a travel insurance policy that also offers travel delay coverage can end up being one of the smartest investments they can make.”