Summer holidays can significantly overrun your budget.
Note that some holiday spending is heating up as inflation has not been fully contained and Memorial Day weekend marks the unofficial start of summer.
It wasn’t long ago that pandemic restrictions severely restricted or closed many businesses, especially those selling “fun.” Therefore, they needed discounts to attract customers until the restrictions were lifted.
In the summer of 2023, the “Welcome home” special will be a thing of the past. The travel and hospitality industries are congested. And, like many labour-intensive industries, there aren’t enough workers to do the leisurely work. This has reduced service availability and increased costs for carriers.
To assess price pain across the spectrum of vacation spending, my trusty spreadsheet looked at 10 slices of the Consumer Price Index, which tracks typical traveler spending. This Holiday Inflation Scorecard compared price averages for the first four months of the year to the same periods last year and 2019. Back then, no one knew what the coronavirus was.
The results suggest that leaving the city isn’t going to be “relaxed” for your wallet. Remember, even the cost of staying at home is skyrocketing. Overall inflation has averaged 6% a year in the first four months of this year and has risen 19% since 2019.
Note: Spending for some entertainment is increasing even more rapidly…
Airfare: It is up 16% this year and up 9% from 2019. Don’t expect airlines to want people to fly because planes fill up. And the number of flights has decreased due to the shortage of manpower. Jet fuel is still expensive.
Outdoor equipment: It has increased by 11% this year and is 28% higher than in 2019. Supply chain issues have been resolved, so while supplies are plentiful, demand for essential outdoor gear is increasing.
Dining out: It’s up 8% this year and 24% in four years. The restaurant is overcrowded and understaffed. And it’s not just about rising labor costs. The cost of raw materials and other consumables is still rising.
Hotel: The price is up 7% this year and is up 16% compared to 2019. “No availability” signs have become as common as they were before the pandemic. As a result, room rate discounts are few and far between, and labor costs are skyrocketing if staff can be found.
entertainment: Film, theater and concert spending increased 7% this year. Admission prices have risen 17% since his 2019 as people no longer avoid crowds. It becomes more expensive for the talent, both for the performers and for the employees who run the venue.
Liquor, beer and wine: “Alcohol from home” prices rose 6% this year, up 16% from 2019. Bars have struggled during the pandemic as many restaurants were unable to do take-out or delivery.
Sports ticket: It is up 3% this year, up 1% from 2019. Attendance at sports events has not recovered as strongly as other entertainment options. But once you enter a stadium or arena, watching a match can be expensive.
cruise: It’s 2% cheaper this year, and 6% cheaper than in 2019. It’s not that demand hasn’t returned, it’s just that cruise ship travel is becoming more competitive.
Car rental: It’s 5% cheaper this year, but 49% more expensive than 2019. Finding a rental car went from impossible to possible. Car rental companies have modestly reduced prices.
gasoline: It’s 9% cheaper this year, but it’s up 38% in four years. Oil supply is matching demand. Production interruptions are minimal. It’s also relatively calm geopolitically, which is always good for drivers’ wallets.
position. position. position.
Remember there are geographic bends. As such, it can affect your wallet differently depending on where you’re headed.
Consider this vacation-related expense, the so-called “recreation” expense. Nationwide, it has increased by 5% in one year and by 12% in four years.
In Midwestern states, recreation costs have risen 6% over the past year and 15% over the past four years. In the West, it rose 6% in one year and 13% in four years. In the South, recreational inflation is 5% this year, up from 12% since 2019.
So where’s the bargain geographically? Northeastern states are up just 2% since 2022, up 11% in four years.
Jonathan Lanzner is a business columnist for the Southern California News Group. You can contact him by: firstname.lastname@example.org
https://www.mercurynews.com/2023/05/28/vacation-inflation-going-out-of-town-will-cost-you/ Getting out of town this summer costs money – Mercury News