More than 1 in 4 Americans Pay for Vacation Using Credit
A Third of Adults Plan to Spend at least $1,000 per Family Member this Year
Thursday, June 28, 2012
New York, NY – Almost one-third (32%) of adults are planning to spend at least $1,000 on vacation per family member this year, including one in six (17%) who plan to spend upwards of $2,500, according to a new Ipsos survey of over 1,000 adults conducted on behalf of RetailMeNot.com. Four in ten (42%) intend to spend less than that amount, including 21% who expect to spend under $500. Men are twice as likely as women to say that they will spend at least $1,000 per family member for vacation this year (43% vs. 21%). In fact, nearly one in ten men (8%) plans to spend at least $5,000.
- Those under 55 are also more likely that those who are older to be planning to spend $5,000 or more (7% vs. 3%).
Only one quarter (26%) of adults report that they are not traveling this year. Those who are least likely to be traveling this year include those with a household income of $50,000 or less (38%) and women (32%).
Paying for vacation, before or after
U.S. adults are fairly split when it comes to budgeting and paying for a vacation, though a plurality (40%) report that they typically pay for part of their vacation ahead of time, then use a combination of cash/credit/debit for expenses incurred during the trip.
One third (32%) tend to pay for their vacation in full before they depart, including setting aside money to use while on vacation. Women are more likely to do this than are men (36% vs. 28%).
Yet nearly as many (28%) say that they usually pay for their vacation using credit, and then pay it off during and/or following the trip. Those aged 55 and over (37%) are more likely to pay on credit than are those aged 35-54 (25%) or 18-34 (22%). Men are also more likely to do so than women (32% vs. 24%)
Majority of Working Adults Get at least Two Weeks of Paid Time Off
Six in ten (57%) employed adults receive more than ten days of vacation or paid time off each year, including four in ten (38%) who get over three weeks off. Those most likely to get at least two weeks of paid time off include workers aged 35-54 (69%), those with a household income of at least $50,000 (66%), college graduates (66%) and men (62%).
However, a quarter (24%) receive less than two weeks off, including over a third of working adults under 35 (38%) and those with a household income of less than $50,000 (35%).
One in seven working adults (14%) reports that they do not receive any vacation or paid time off from work. One in five (20%) women do not receive this time off, compared to just 9% of men
Outside of Transportation and Hotel Costs, Meals and Drinks Account for Most of the Vacation Budget
Nearly four in ten (38%) adults say they are most likely to spend the majority of their vacation budget, outside of transportation and hotel costs, on meals and drinks, particularly those aged 55 and over (49% vs. 38% of those aged 35-54, and 28% of those under 35). Others who expect meals and drinks to consume the greatest part of the budget include those without children in the household (40%) and those with incomes of $50,000 and over (43%).
About one in five (21%) say they are likely to spend the majority of their vacation budgets on entertainment, excursion, and activities at their destination (e.g., tours, spa services, bike rentals), particularly those aged 18-34 (27%) and 35-54 (24%). Those with a household income of $50,000 and over are also more likely to say that activities and entertainment takes up most of their vacation budget (25% vs. 17% of those with incomes under $50,000).
Fewer than one in ten adults (8%) say they are likely to spend most of their vacation budget on entertainment specifically for their kids, either at their destination or in transit. However, 19% of parents say that this is the case.
Just 4% say that new clothes, luggage and/or athletic gear for their vacation accounts for most of their vacation budget, and the same proportion tend to spend most on souvenirs or gifts. A quarter of respondents (25%) report that this is not applicable to them.
Saving Money on Accommodations
Nearly four in ten (38%) adults say they will consider staying with friends or family as a way to save money on lodging on their next vacation. Other cost-saving strategies include staying at an all-inclusive resort (25%) or renting a vacation home instead of staying in a hotel (25%).
- College graduates (35%), those with a household income of over $50,000 (31%) and adults under 35 (31%) are most likely to consider an all-inclusive resort.
- Renting a vacation home is a more popular consideration among those under 35 (34%), parents (31%), and those with a household income of $50,000 or more (29%).
Nearly one in five (19%) would consider camping as a way to save money on lodging, including 26% of parents. However, nearly three in ten (29%) say they will not consider any of these options, particularly those over 55 (39%).
Nearly Half Say that They Don’t Typically Tip Housekeeping
Just under half (48%) of adults report that they do not typically tip housekeeping when they stay at a hotel, while 52% say that they do usually leave a daily tip, while three quarters of Northeasterners usually leave a tip, this is a less common practice in other regions, where majorities do not tend to leave a tip (51% of those in the Midwest and West, and 56% of Southerners).
Among those who do tip, 44% leave at least $5, while a third (33%) tends to leave just a dollar or two. Those under 35 years old and parents tend to be the best tippers, with majorities saying that they usually leave at least $5 (51% and 52%, respectively). Conversely, those aged 55 and older (42%), women (39%), and retirees (39%) are most likely to leave a dollar or two for housekeeping.
These are some of the findings of an Ipsos poll conducted June 8-12, 2012. For the survey, a national sample of 1,006 adults aged 18 and older from Ipsos’ U.S. online panel were interviewed online, including 516 adults employed full- or part time. Weighting was then employed to balance demographics and ensure that the sample's composition reflects that of the U.S. adult population according to Census data and to provide results intended to approximate the sample universe. A survey with an unweighted probability sample of 1,006 and a 100% response rate would have an estimated margin of error of +/- 3.1 percentage points 19 times out of 20 of what the results would have been had the entire adult population of adults aged 18 and older in the United States had been polled. All sample surveys and polls may be subject to other sources of error, including, but not limited to coverage error, and measurement error.
For more information on this news release please contact:
Senior Research Manager
Ipsos Public Affairs
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