The Average American Plans to Spend This Much on Travel This Summer

Published on July 7, 2022

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KEY POINTS

Americans plan on spending close to $200 billion this year on summer vacations, the highest amount on record.
The average household is projected to spend $2,644 for vacations this summer, 24% to 81% more than their European counterparts.
With COVID-19 still infectious, getting additional coverage on your travel insurance can help protect you from the financial effects of illness and quarantine.

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It's an all-time high.

Travel has not only returned to pre-pandemic levels, but Americans are spending more on summer travel than ever before. According to Allianz Partners USA's 14th annual Vacation Confidence Index, Americans plan on spending close to $200 billion on their summer vacations this year, a 91% increase over pre-pandemic levels.

High inflation and pent up demand

With inflation at 40-year highs and pent-up demand from COVID-related restrictions, Americans plan to spend more on vacations than ever this year. Americans plan to spend $194 billion this summer, a whopping 229% increase from 2020 and a 91% increase from 2019, right before the pandemic hit.

The average American plans to spend $2,644 for vacations this summer, a 25% increase from 2021, a 40% increase from 2020, and a 30% increase from pre-pandemic 2019 levels. In a separate survey, Allianz found that Americans plan to spend 24% to 81% more than their European counterparts.

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Adding COVID-19 coverage to travel insurance

With so many Americans planning to travel, getting the right type of travel insurance can protect you against various travel risks. Many travel insurance companies are now offering additional COVID coverage to their policies. While some travel credit cards provide a limited amount of travel insurance, it's often not enough to cover every situation.

Some benefits of getting additional COVID-19 coverage for your travel insurance policies include:

If you get sick with it after the policy's effective date and need to be evacuated or otherwise seek emergency care, then your travel medical insurance can provide coverage.
Insurance will also cover any trip cancellations if your trip is canceled due to COVID-19.
Some policies cover the cost of testing if you have symptoms and a physician orders it.
Some policies also cover the costs of quarantine for COVID-19.

Although the pandemic isn't over, many of the restrictions have been lifted, so Americans are releasing their pent-up demand and spending more on vacations this summer. With rising costs, it can be easy to go over your budget. Shopping around for the best value can keep you from overspending on travel costs.

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Our Research Expert

David Chang, ChFC®, CLU®

David S. Chang, ChFC®, CLU® is an award-winning entrepreneur and financial planner with over two decades of experience in the personal finance space. He is a graduate of West Point and a Lieutenant Colonel in the Army National Guard. He has an MBA from the UCLA Anderson School of Management.

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