Summer Travel Visits The Wealth Gap

The growing wealth gap between the haves and have-nots is being highlighted by the summer vacation time.
Skift Traveling to Paris for the Summer Olympics is not a choice for Jeremy Fain. Past collegiate swimmer and CEO of Cognitiv, Cognitiv, will visit France to watch the opening ceremonies and the Olympic swimming competition activity. He and his mate are spending about half as much as they did last summer, but it’s worthwhile for them. ” The Olympics are about a once in a lifetime experience, so spending is hardly a difficult choice”, Fain said in a written exam. We would never be able to participate in beach volleyball under the Eiffel Tower during a typical summer, which is something we would never be allowed to perform. But “once in a lifetime” does n’t come cheap. ” With the planes and the Olympics cards alone, it’s a small fortune for a week of occasions”, Fain acknowledged. Fain, a native of New York, is one of the millions of Americans who are on the verge of record-setting travel dates this summer when they hit the road or taking off for far-off places. More than 3 million heat travelers passed through TSA gates on July 7th, which is when it presently started this past year. But no one’s out it spending, jetting off to Europe and then having a good time. Some Americans are visiting family in more remote areas because of the economy. A higher proportion of households earning less than$ 75,000 in May according to a Bank of America travel survey said they have no plans to leave. The summer vacation time is highlighting the increasing prosperity split between the haves and have-nots in the U. S. as frequent, if slowing, prices eats away at spending power. According to CoStar, in the first five months of 2024, luxury hotel occupancy was up 1.8 % compared to a year earlier, while economy hotel occupancy was down 3.4 %. ” We’re seeing a split by lodge school”, Jan Freitag, regional director, hospitality insights, at CoStar told Skift next month. ” The higher-end tourist and, therefore, the higher-end accommodations are showing strong growth in demand and room charge. The bottom end of the market ca n’t be said to be the same,” he says,” but the results of major airlines ‘ results are also clear.” Budget companies are struggling while those who invest heavily in their subscription services and offer high-end fliers are prospering. According to a Newsweek poll conducted on July 4, 44 % of respondents said they would n’t be traveling in the next three months, with 53 % saying they would have taken a vacation if living expenses had been lower. Of those that are heading there, about 64 % sought out cheaper sites, means of travel and lodging. One of those cutting up is Debbie Davis, an executive project director for Integrated Water Services who resides in Colorado Springs. She and her husband, their two daughters, spent three days camping in Grand Junction next month, and later this month she intends to stay in the area and camp once while staying in Durango for four nights. We’ll just stick with camping because I could get a hotel for a portion of that time, but I’m already going to spend$ 550 on a car rental and most of the hotels are ridiculously expensive, Davis said. The home spent thousands of dollars on a trip to Florida last summer, which included a halt in the Keys and a stop at Universal Studios and Orlando. ” Typically, we would have taken a big trip”, she said. ” Not this year “.Davis, like many other Americans, is facing a continued high cost of living. Annual inflation in the U. S. reached 3.3 % for the 12 months ending in May. Though the overall cost of travel dropped 2 % in May from a year earlier, it was up 12 % compared to the same month in 2019, according to NerdWallet’s Travel Price Index. Hotels, on the other hand, have managed to maintain rates higher, with Skift modeling continued strength for 2024. Even though Fain was willing to pay the price for the extraordinary experience of watching the Olympics in Paris, he is not entirely immune to sticker shock and is grateful that he did n’t have to pay for an Airbnb or hotel room. We will be staying there while our companions are away on vacation in other cities than Paris, according to Fain. Even with the free lodging,” this will be a pretty costly trip.”