Summer Prices Bust Travel Budgets



Prices Surging Amid Pent-Up Demand


Summer travel is in full swing as consumers venture out after more than a year of pandemic shutdowns and restrictions. What they are finding is that prices on everything from rental cars to accommodations are skyrocketing. Take car rentals in popular domestic vacation spots as an example: prices are up 300%. Meanwhile the average price for vacation rental homes is up 70%.

The price surges are not entirely surprising. With the pandemic easing, people want to get out again and are willing to pay more to escape. Problems arise, however, when they bust their budget in the pursuit of making up for lost time. The good news: there are ways to prevent breaking the bank.

Consider the Tradeoffs


Many Americans have been able to save more money during the pandemic thanks to stimulus checks and reduced costs on childcare, commuting, and entertainment. That does not mean all savings should be put toward a vacation. A better choice is to set a budget considering the costs beyond flight, car rental, and accommodations. That gives travelers a clearer picture of the total outlays for the trip.

It is also important to weigh the price tradeoffs when planning a vacation. Some people may prefer to stay at a high-end hotel for a shorter period while others prefer cheap lodging for a longer time. Without considering tradeoffs, it is easy to overspend. Timing is also important. Prices are surging but they could come down later in the year. For travelers who can postpone their trip, they may save more.

Leverage Reward Points

How travelers pay for their trips can also prevent overspending. Using travel rewards can be advantageous. Consumers should resist the urge to use emergency savings for a summer trip. It is important in the post-pandemic era to have a rainy day fund at the ready.

Vacationing is in the cards for many Americans, but that does not mean they have to overpay to get some rest and relaxation. Following the above tips can help prevent that from happening.

Things are changing daily within the financial world. Sign up for the SoFi Daily Newsletter to get the latest news updates in your inbox every weekday.

Sign up


Please understand that this information provided is general in nature and shouldn’t be construed as a recommendation or solicitation of any products offered by SoFi’s affiliates and subsidiaries. In addition, this information is by no means meant to provide investment or financial advice, nor is it intended to serve as the basis for any investment decision or recommendation to buy or sell any asset. Keep in mind that investing involves risk, and past performance of an asset never guarantees future results or returns. It’s important for investors to consider their specific financial needs, goals, and risk profile before making an investment decision.
The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. These links are provided for informational purposes and should not be viewed as an endorsement. No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this content.
Communication of SoFi Wealth LLC an SEC Registered Investment Adviser
SoFi isn’t recommending and is not affiliated with the brands or companies displayed. Brands displayed neither endorse or sponsor this article. Third party trademarks and service marks referenced are property of their respective owners.
SOSS21061003


All your finances.
All in one app.

SoFi QR code, Download now, scan this with your phone’s camera

All your finances.
All in one app.

App Store rating

SoFi iOS App, Download on the App Store SoFi Android App, Get it on Google Play

ABOUT Meg Richardson Meg Richardson is a writer specializing in markets, technology, and personal finance. She loves breaking down seemingly complex ideas and making them readable and interesting for everyone. She holds an MFA in writing from Columbia University. When she is not writing about finance, she enjoys running in Central Park and drawing cartoons.


TLS 1.2 Encrypted
Equal Housing Lender