The FINANCIAL -- WILMINGTON, Del . - June 15, 2011 - Americans are approaching the summer
travel season with cautionary spending behavior, according to a survey
released today by Chase Card Services.
The survey found that 41 percent of Americans are likely to take a vacation this summer, compared to a similar number last year of 44 percent last year. Within the majority of Americans unlikely to take a vacation, the research revealed that 39 percent are doing so in order to save money, with many others planning to take on additional cost saving measures, such as do-it-yourself projects, while enjoying the summer season.
Of those Americans who are planning to take summer vacations, many intend to do so close to home (58 percent) or stay with friends and family (51 percent) as money-saving-tactics. In addition, more than one third of Americans say they plan to spend less on typical summer activities, with 20 percent cutting back on dining out and 15 percent on entertainment like going to the movies.
"Research has shown that a 'new normal' is taking hold of American spending behavior and we are seeing this trend reflected in summertime activities," said Tom O'Donnell, general manager, Chase Card Services, a division of JPMorgan Chase & Co. "This summer, Americans are being more selective in their spending, adjusting their vacation plans, and embracing new types of activities to make the most of their finances."
The Chase Summer Survey, fielded by GMRS, was a telephone poll of 1,001 U.S. adults age 18 and older across the country.
While consumers are taking greater strides to reduce their summer spending, the survey further revealed that many Americans already have adopted more moderate seasonal spending habits. For example, the majority of survey respondents reported that they personally maintain their yards and conduct home repairs instead of hiring external help, and more than a quarter have already cut back on summer-related purchases, such as grills and pool memberships, and have tried to reduce their summer utility bills.
Similarly, many Americans are planning their summer vacations around expenses related to external factors like gasoline prices. According to the study, 25 percent of Americans are changing their travel plans due to the current cost of gasoline. However, spiking gas prices have been a concern for consumers since the beginning of the summer travel season: when asked what would have the biggest impact on their Memorial Day weekend plans, 48 percent of survey respondents stated gasoline prices. In addition, this concern over gasoline prices is likely to continue, as the survey found that 45 percent of Americans believe gas prices will be higher in six months.
In addition to being more selective with their seasonal spending, Americans are being savvier in managing personal and external factors that affect their spending on summer vacations. For example, the survey found that for those Americans planning to take a vacation, 57 percent plan to or already have set a budget for the trip. Of those who set budgets, 24 percent plan to set smaller budgets than last year, while 19 percent stated they would set larger vacation budgets.
"Budgeting for expenses like vacations and building plans to stay within financial targets are positive practices that we've seen emerge since the economic downturn," concluded O'Donnell. "These habits will continue to help Americans manage their personal finances as the economy and personal outlooks continue to improve."
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