COSTA MESA, Calif., June 17, 2015 /PRNewswire/ -- The majority of vacationers spend more money than expected when traveling (68 percent), often relying on credit cards to make up the difference, according to a new survey commissioned by Experian. Millennials rank even higher when it comes to risky vacation spending — one-third report they have not been saving up in advance of vacation, 72 percent say they spend more than expected when traveling, and 52 percent are strapped with credit card debt once the holiday ends.
"People want to come home from vacation with happy memories, not with unanticipated and unmanageable credit card bills," said Guy Abramo, president, Experian Consumer Services. "Racking up excessive credit card debt without a plan to pay it off can put people, especially millennials, in a bind that could affect their financial health and credit status for years to come."
Survey results show travelers use credit cards over debit cards:
- Lodging: 68 percent use credit compared to debit cards and cash, 19 percent and 11 percent respectively
- Airfare: 67 percent use credit compared to debit cards and cash, 19 percent and 11 percent respectively
- Entertainment: 47 percent use credit compared to debit cards and cash, 21 percent and 30 percent respectively
- Dining: 40 percent use credit compared to debit cards and cash, 23 percent and 36 percent respectively
Budgets and vacations are sometimes conflicting, especially among millennials:
- Forty-nine percent have accumulated credit card debt while traveling (52 percent of millennials)
- Forty-six percent have paid for a vacation by credit card when they didn't have enough saved (50 percent of millennials)
- Thirty-seven percent have cancelled vacation plans due to budget issues (44 percent of millennials)
- Thirty-three percent of travelers plan to use their tax refund to pay for 2015 summer travel (50 percent of millennials)
- Seventy-five percent say staycations are a good way to minimize spending during time off
About the survey
The online survey was commissioned by Experian Consumer Services, produced by research firm Edelman Berland and conducted as an online survey of 1,000 adults ages 18 and older residing in the United States from May 5, 2015, through May 11, 2015. The margin of error is plus or minus 3.1 percent. To learn more about the survey, please visit http://www.experian.com/blogs/ask-experian/2015/06/16/setting-a-budget-for-summer-travel-survey-results.
About Experian Consumer Services
The Experian Consumer Services division provides credit monitoring and other informational products, such as identity protection, to millions of consumers via the Internet. The organization enables consumers to monitor their credit reports online, check their FICO® Scores and protect against identity theft. Its products include Experian Credit TrackerSM and ProtectMyID®.
Experian Consumer Services has established integrated, cobranded relationships with leading online financial destinations that provide consumers with a broad range of comprehensive online financial products and information essential to managing one's financial life. For more information, visit http://www.experian.com.
This press release is provided for general guidance and information. It is not intended as, nor should it be construed to be legal, financial or other professional advice. Please consult with your attorney or financial adviser to discuss any legal issues or financial issues involved with credit decisions.
We are the leading global information services company, providing data and analytical tools to our clients around the world. We help businesses to manage credit risk, prevent fraud, target marketing offers and automate decision making. We also help people to check their credit report and credit score, and protect against identity theft. In 2014, we were named by Forbes magazine as one of the "World's Most Innovative Companies."
We employ approximately 17,000 people in 39 countries and our corporate headquarters are in Dublin, Ireland, with operational headquarters in Nottingham, UK; California, US; and São Paulo, Brazil.
Experian plc is listed on the London Stock Exchange (EXPN) and is a constituent of the FTSE 100 index. Total revenue for the year ended March 31, 2015, was US$4.8 billion.
Experian and the Experian marks used herein are trademarks or registered trademarks of Experian Information Solutions, Inc. Other product and company names mentioned herein are the property of their respective owners.