With the holidays quickly approaching, many people are starting to think about how they will be spending their time away from home…and what it will cost. With rising inflation rates, many are worried the cost of travel will just be too high. Luckily, holiday travel is still an option if you know what you’ll be spending so that you can budget for it. Here’s what it will cost to get you to your loved ones this year.
Before you make plans, make a budget
Before you decide where you’ll head for the holidays, you need to know what the ceiling is for how much you can spend. Otherwise, you’ll end up in debt and have to start researching debt consolidation loan requirements to get your finances back under control.
Start by taking a good, hard look at your finances. Have you set aside money throughout the year to pay for your travel, or are you just using what you’ve got available? How much are you willing to dip into your emergency fund, and how quickly can you repay it? Once you have a budget, start to add up your holiday expenses.
A study by NerdWallet found that in 2021 the average traveler will spend about $1,814 on average to travel for the holidays. This includes everything from airfare and hotel rooms to food and drinks but does not include gifts. Knowing that number and that inflation has caused prices to rise since 2021, does it make sense for you to travel this year, or is that an amount that’s too far out of your reach?
The costs to consider for your holiday travel
The average roundtrip airfare from major U.S. cities to popular holiday destinations is about $1,000. That doesn’t include taxes and fees, so it’s something you’ll want to factor in when trying to calculate how much money you’ll need to save up.
2: Hotel rooms
When looking for a hotel room during the holidays, expect prices to go up by as much as 50%. If you’re planning on staying in one place for a few days or weeks, staying with family or friends may be cheaper. But if you’re looking for a long-term solution, staying in a hotel will cost you an average of $300 per night.
If you’re eating out during the holidays, prepare to spend an average of $50 per person at restaurants.
4: Ground transportation
If you’re flying and are renting a car, expect to spend about $250 per week.
Another expense you’ll likely face during the holidays is spending money on gifts. One recent Gallup poll found that the average person spends $942 on gifts for friends and family members.
6: Miscellaneous expenses
Along with all the costs mentioned above, remember to factor in things like taxes, parking, toiletries you forgot at home, and souvenirs. All of these expenses can add up quickly, so make sure to have an estimate before you go shopping!
The bottom line
When it comes to holiday travel, know that the average traveler will spend about $1,814 in 2021. This doesn’t include the cost of gifts or anything extra like parking or souvenirs. If you’re looking to save money this year, make sure to budget accordingly and be realistic about how much you can realistically afford.
Name: Michael Bertini
Job Title: Consultant