The US-insurer has released data on how inflation is affecting decision-making among those planning to travel during the remainder of 2022. The company shared relevant data highlighting how likely inflation is to cause travellers to cancel their trips, how travellers might alter their plans and daily spending habits rather than cancel their trips, and how concern about the cost of travel is remaining steady throughout the first half of the year.
When Seven Corners asked if inflation would affect respondents’ ability and/or desire to travel this year, only 15 per cent said no. Conversely, nearly 48 per cent said yes, inflation would affect their ability to travel. While 41 per cent of respondents indicated they would be either very likely or somewhat likely to cancel their trip due to inflation, 55 per cent leaned the other way. Of that majority, 40 per cent reported being very or somewhat unlikely to cancel their trip, and 15 per cent said inflation would not impact their decisions regarding cancellation.
Although most travellers don’t expect to cancel their trips, they are more likely to at least alter their travel plans to reduce expenses. More than half (57 per cent) reported being likely to change their plans. By comparison, those who are unlikely to alter their plans or who do not plan to change their plans for any reason comprised almost 40 per cent of responses.
Majority still planning holidays
The most common adjustment to plans was staying with friends or family instead of renting or booking a hotel (36 per cent) and choosing a less expensive option for transportation (31 per cent). Some who wrote in a response specifically mentioned driving instead of flying.
Just over 25 per cent said they were going to take at least one micro-cation – a trip of fewer than five nights – instead of a longer trip. This may be a sign of another surge in the short-trip trend. Based on policies sold by Seven Corners, micro-cations grew in popularity in 2021, with a 74-per-cent increase compared to 2019 and a 66-per-cent increase compared to 2020.
In surveys conducted in both the second and third quarters, Seven Corners asked respondents who planned to travel in the US what their biggest concern about travelling was. The most frequently given response in both quarters was cost of travel – 49 per cent in the second quarter and nearly 46 per cent in the third quarter.
Sentiment towards traveling outside the US improved from the second quarter to the third with almost half (49 per cent) of second quarter respondents not planning to travel abroad, while only 37 per cent of third quarter respondents are avoiding international travel. Along with that, both quarterly surveys confirm cost of travel remains top of mind, with 14 per cent of respondents choosing it in the second quarter and 19 per cent selecting it in the third quarter as their main worry. Unease regarding international hostilities and concerns about flight delays both moved up the list, with each garnering four per cent of responses in the second quarter and eight per cent in the third.
Various issues regarding Covid-19 saw more modest change. Only concerns about keeping up with and following Covid-19 requirements saw a decrease, dropping from nine per cent in the second quarter to four per cent in the third. This is likely related to many countries relaxing entry requirements in recent months.