From March to April 2022, airfare prices are up 18.6%, the highest jump ever recorded. As the COVID-19 pandemic subsides, countries ease restrictions, and people feel more comfortable traveling, prices for travel are skyrocketing. This in part correlates to the rise of inflation and increase in price of fuel, which airlines are passing off on to the consumer.
However, even though prices are jumping through the roof, people do not seem to mind. Demand is higher than it was at this point in 2019. Many people have avoided travel entirely for the past two years, so they are willing to take a trip no matter what the cost is. If you are struggling to pay for your next trip, you can take out a personal loan for vacation to get the money you need quickly.
There are lots of ways to save on travel apart from taking out a loan. For instance, you can leverage credit card miles and points to offset the cost of a plane ticket or hotel stay. By using credit cards for your everyday purchases, you can earn these points and miles that can sometimes add up to a free flight. There are airline co-branded credit cards like the Delta American Express card, or general travel cards like the Chase Sapphire Reserve that can be used to transfer points to your favorite airline or hotel chain.
If you have flexibility on when and where you travel, you can use services like Google Flights or Skyscanner to find the cheapest flights to various destinations around the world.
Should you take out a vacation loan?
There is not one definitive answer to this question, as it really depends on personal situations. Vacation loans let you purchase your trip now and pay it off over time, with lower interest rates than credit cards. These loans are normally unsecured, which means you will not have to put anything up as collateral to get it. They typically come in the form of a personal loan, which has terms of repayment up to seven years, giving you the flexibility you need to take that dream trip.
The terms of your loan very much depend on your credit, so you can find some affordable options if you have great credit. If it is just fair, it might cost you to use a vacation loan. As with anything, there are pros and cons to taking out a loan for vacation. Although they offer ease and quick access to money, they can also cause stress by worrying about repayment and can be very expensive depending on your terms and conditions. It can also impact your ability to borrow credit in the future, so make sure you think long and hard about the decision before taking one out.
The bottom line
Everyone is eager to travel again, and prices reflect that demand. Whether you take out a personal loan for vacation or leverage credit card points, be sure to stay safe and have fun.