Here’s how to save big on your next vacation

Welcome to the “I didn’t see it coming” economy, where consumer spending news changes at a fast and frantic pace. From parents running out of school supplies to families adjusting to now routine Federal Reserve rate hikes, few consumers know what to expect when they pull out their wallets these days.

Another example – and one that might suit adventurous American travelers – is a Forbes Advisor Report which states that “the secret to saving money on vacation could be to travel outside the United States”

The report, which tracked travel trends among 2,000 US citizens, found that the average international trip this summer costs $5,295, or $718 less than the average trip to the United States, at $6,013.

This could be good news for US travel consumers for the second half.

The Forbes survey found that Americans planning to take summer vacations this year have cut or will cut their travel budget by an average of $1,636. Additionally, “going to a less expensive destination is the most popular tactic to cut costs,” followed by taking fewer trips (37%) and traveling shorter distances (35%), the report notes. .

Deals down, wheels up

Why would a trip to Europe or Asia be cheaper than a trip to Yosemite or Miami Beach? After all, doesn’t geography matter in travel pricing?

“Prices in any given destination are based on a whole range of factors such as average income, what is produced locally, property prices, tax rates and exchange rates,” said Tim Leffel , author of The World’s Cheapest Destinations, now in its 5th edition. edition, and the founder of the Cheapest Destinations blog, launched in 2003.

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Additionally, supply and demand contribute significantly to travel costs at home and abroad.

“Since the United States is one of the wealthiest countries in the world and the prices of travel are among the highest, a foreign destination can be much cheaper than even the cheapest places in the United States “, said Leffel. “This is especially true in a country where average wages are half or less of what they are in the United States. Labor costs impact a wide range of services enjoyed by tourists, but this is especially the case with hotels, restaurants, attractions and transportation costs.

Ending the Pandemic Means Europe Opening for Business – and Aggressively

Given that few American travelers have been able to visit Europe in the last year and a half, there is a lot of pent-up demand for Barcelona, ​​Paris and Rome, among other Euroland destination spots this summer.

“Combine that with European prices 20% cheaper than they were in 2021 and people who were on the fence are now booking a trip,” Leffel told TheStreet. “The prices are too good to pass up. I was just in Spain in June and was pleasantly surprised at how reasonably priced everything was compared to the US, especially the restaurants, bars and hotels.”

It may be easier to hit European hotspots sooner rather than later, once you factor in airline prices.

“The value of airline tickets to Europe skyrockets in the fall, after expensive summer fares drop. Hotels, vacation rentals and even dining costs become more manageable in Europe once the high season over,” said CheapAir CEO Jeff Klee. .com “When travelers factor in the strength of the dollar against the euro, this fall should be the optimal time to see unexpected additional savings in Europe.

As for Asia, an American traveler’s economic spending options are wide open.

“Ground travel to hotels, restaurants and attractions in many parts of Southeast Asia, India and China is much cheaper than in the United States,” Klee told TheStreet. “Overall, a real case can be made that a “budget trip” to Europe or parts of Asia is cheaper than going to an American city like Miami.”

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