average trip per year

How Many Vacations Does the Average Family Take?

My family and I love to go on vacation, but we really only take 1 big vacation a year. So I wondered how many vacations does the average family take?

40% of Americans, which is almost 100 million people, will take at least 1 vacation each year. Of those 100 million people, 28% will take 3 or more vacations per year. But Americans in the southern states are almost twice as likely to vacation as people in the northern states.

But there’s more to say about family vacations, how often people take them, and even what the average amount of paid time off from work is.

So let’s keep going!

Check out my best travel resources and recommendations (click to read) that will save you time and money on your next vacation!

What percent of families go on vacation?

In the United States, 40% of families plan at least 1 vacation per year. 45% of families who are traveling will have some sort of vacation or getaway during springtime. But 68% of those families who are traveling will be going on vacation during the summer.

That’s according to a recent AAA travel survey , and it’s an increase over prior years.

No matter when they go, 53% of families will be road-tripping versus flying. That could be to keep costs down, because the destinations aren’t far away, or a combination of both.

It’s also worth noting that gas prices affect 33% of travelers’ decisions to go on vacation by car.

Interestingly, families in the southern states are almost twice as likely to plan a family vacation than families in the northern states. I guess we southerners just like to have more fun!

But in all seriousness, 62% of southern families are going to vacation this year compared to only 35% of northern families. That’s a BIG difference.

In terms of how many vacations does the average family take, most families take 1 big vacation each year. But 28% of those who take a family vacation takes 3 or more trips each year.

That’s up 16% just since 2016.

How many weeks of vacation does the average American get?

10 days a year is the average amount of paid time off most Americans get each year. But whether the employee is full-time or part-time affects that as well as how long an employee has worked for the company.

Sadly though, not everyone gets paid time off for family vacations.

According to a recent study by the Center for Economic and Policy Research, “the United States is the only advanced economy in the world that does not guarantee its workers paid vacations.”

Specifically, they found that:

• 23% of Americans get no paid time off or paid holidays
• Most Americans get 10 paid days off each year
• In the EU, employees are guaranteed at least 20 paid days off each year, and some offer up to 30
• For hourly workers, the bottom 25% only get 4 paid days off each year
• By contrast, the top 25% of hourly workers get 14 paid days off each year

Of course, whether an employee is part-time or full-time will have a big impact on paid days off, as well as whether the employee is paid hourly or on salary.

I worked for Whole Foods Market for 20+ years. At the time when I left the company in 2013, I was being given (but not taking) upwards of 6 weeks of paid time off each year.

But even for new full-time employees, at the time they got about 2 weeks of paid time off each year and what you didn’t use rolled over or could be cashed out.

Want a family vacation, but think you can’t afford it?

Think again! A great family vacation doesn’t have to break the bank, drive you into debt, or rob you of your savings. It just takes a little planning and picking the right destinations. So if think you can’t afford to take a family vacation, you’ll definitely want to check out my list of Affordable Family Vacation Destinations (click to read) .

How many vacation weeks do you get after 10 years?

On average, most employees who have been with a company in the US between 10-20 years, get 15-19 paid days off for family vacations. And 13% of those get 24 or more paid days off. 

Of course, there are so many variables here, that it’s impossible to give one answer.

As I mentioned above, at least when I worked for Whole Foods Market, they paid way more than that in PTO. It’s also worth noting that in the United States, companies are not required to provide paid time off.

And while some employers provide PTO for any purpose, others break it down by type: sick days, vacation days, holidays, etc.

How many vacation days you might get after 10 years will be based on the following:

• Are you part-time or full-time? (benefits are typically much better for full-time employees)
• How long have you worked for your company? (many companies pay more PTO the longer you have worked for them)
• Does your company provide paid time off? (they aren’t required t0)
• What are the other benefits your company provides? (the total cost of employee benefits has limits, so if they pay a huge portion of your healthcare costs, they probably pay less in other areas)
• How many employees does your company have? (usually more employees equals better benefits)

While US employers are not required to provide paid time off, a recent report from the U.S. Bureau of Labor Statistics showed that 76% of employers DO provide at least some paid time off.

The P. Terry’s crew wants you to remember to go vote! Early voting ends October 30th! You might even see one of our crew members voting next to you. They all get paid time off and a ride to exercise their right to vote. pic.twitter.com/0y99tAR5Mv — P. Terry’s (@pterrys) October 20, 2020

Average paid time off based on years worked:

Employed between 1-5 years.

• 0-5 paid days off (7%)
• 5-9 paid days off (38%)
• 10-14 paid days off (35%)
• 15-19 paid days off (12%)
• 20-24 paid days off (7%)
• 24+ paid days off (2%)

Employed between 5-10 years

• 0-5 paid days off (2%)
• 5-9 paid days off (9%)
• 10-14 paid days off (36%)
• 15-19 paid days off (34%)
• 20-24 paid days off (12%)
• 24+ paid days off (6%)

Employed between 10-20 years

• 5-9 paid days off (7%)
• 10-14 paid days off (16%)
• 15-19 paid days off (41%)
• 20-24 paid days off (22%)
• 24+ paid days off (13%)

Employed 20 or more years

• 5-9 paid days off (6%)
• 10-14 paid days off (13%)
• 15-19 paid days off (20%)
• 20-24 paid days off (35%)
• 24+ paid days off (25%)

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What age groups travel the most?

Millennials, those born between 1980-1995, travel more than any other age group, taking, on average, 35 days off each year, compared to Baby Boomers who average 27 vacation days each year or Generation X who take 26 days per year for vacations.

With almost 100 million people taking family vacations each year.

Here are the exact comparisons between other age groups and travel days on average:

• Generation Z (born between 1995-2005) – 29 travel days per year
• Generation X (born between 1965-1980) – 26 travel days per year
• Baby Boomers (born between 1946 to 1964) – 27 travel days per year

Now that covered how many vacation days does the average family take.

But in terms of how many people, we’ll look at that recent AAA survey I referenced at the top which showed that 44% of millennials are planning to take at least 1 family vacation this year.

That too beats out Generation X (39%) and Baby Boomers (32%).

AAA Senior Vice President Bill Sutherland goes on to state “No matter their age, families are going on not just one, but multiple vacations throughout the year to revisit favorite destinations and experience new places.”

Want to take a summer vacation this year with your family but think everything is booked or will be too crowded?

Think again! I’ve compiled a handy list of some amazing Family Vacation Destinations that many people overlook (click to read) .

It’s not too late to plan a great vacation this year for your family, so check out some of those destinations and see if one of them isn’t perfect for your family!

How many US citizens travel abroad each year?

35 million people from the US, on average, take at least 1 family vacation each year to someplace outside the United States. Cancun, The Dominican Republic, and Jamaica top the list of most popular destinations outside of the US.

Going back to AAA again, they found that of the 100 million US family travelers that take at least 1 vacation each year, 35% of them will visit an international destination this year.

For 2019, the top international destinations for the average family vacation are:

• Cancun, Mexico
• Punta Cana, Dominican Republic
• Montego Bay, Jamaica
• Rome, Italy
• Dublin, Ireland

Personally, I don’t think I would do a family vacation to Cancun.

For Mexico, I much prefer Puerta Vallarta. For another, I didn’t care much for Cancun. It was like Vegas on the ocean and then the local area of town was far removed from the main party strip, but the local parts I saw didn’t have the quaint feel of old town Puerto Vallarta.

The best part of Cancun for me was renting a car and driving to Chichén Itzá to climb the pyramid (which I don’t think they let you do anymore).

Punta Cana boat tours are a great way to explore exotic Caribbean sea and the prices are affordable for the average American family. Loads of families with kids were having a blast, diving into all sorts of fun summer activities .

Rome, however, would make a great vacation destination for a family to take and I haven’t been to the others on that list.

My favorite family vacation destination, by far, is Costa Rica. I had been when I was single and childless, but once I was married and became a Dad, we took my oldest daughter Astrid there around her 1st birthday and we keep going back.

If Costa Rica has always sounded intriguing to you for a family vacation, check out my Ultimate Travel Guide to Guanacaste Costa Rica (click to read) .

Guanacaste is our favorite province to visit (provinces are like states), but I don’t think you could go wrong traveling anywhere in Costa Rica .

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How much does the average family spend on vacations per year?

On average, a family of 4 in the US will spend $4,580 total for one family vacation each year. That breaks down to $1,145 per person.

So we know how many vacations the average family takes, and which age groups travel more, but how much is that costing them?

At the top, I mentioned that 53% of family vacationers will be traveling by car instead of a plane, so that’s definitely one way to keep costs down.

Even with gas and if you rent an SUV, you’ll still likely pay far less than you would to fly; you just have to have the time off to be able to drive to your destination.

That being said, a different survey by Harris Poll & NerdWallet found that parents plan to spend only $2,523 on their family vacation.

They also looked at debt and sadly found that 80% of Americans plan to charge at least $1,467 towards their family vacation this year.

Here are some handy breakdowns by expense category so you know where your hard-earned dollars are going:

• FOOD COSTS – $132/day (family of 4 eating out all meals)
• HOTEL – $116/night (average in the US for a family of 4 according to hotels.com )
• FLIGHTS – $224/each (domestic flights in the US, according to the Consumer Expenditure Survey )
• TAXES & FEES – Vary, but for many family vacation destinations, this can be hundreds of dollars

Of course, where you go has a big impact on those numbers as Chicago, New York, and Minneapolis have the highest taxes and fees for vacation travelers.

Flying to Hawaii?

Aside from the brutal 10 hours, it will take to get there from many airports, you’re also looking at upwards of $1,000/flight (one of the many reasons I vastly prefer Costa Rica for a tropical vacation, which is a 3-hour flight and at least half the price).

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Just click that link to read it on my site.

Final Thoughts

In this article, we took a detailed look at the world of family vacations.

We explored how often people take them, which age groups travel more, what percentage goes to international locations, and what the average amount of paid time off at work employees get to take those family vacations.

Specifically, though, we answered the question of how many vacations does the average family take, which is 1 big trip a year for most families, with 28% of those vacationers taking 3 or more.

Where is your favorite family vacation spot?

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Average Vacation Cost – US & International

About 69% of employed and 55% of unemployed Americans have taken a vacation. In 2019, before the COVID-10 pandemic disrupted the world, 52% of Americans were planning to travel during the summer months. To plan holiday spending successfully, it’s essential to know the average vacation cost for domestic and international trips. How much to put aside for flights, food, and accommodation is just one part of the calculations. There are also lots of factors that can seriously impact your total vacation costs, so scroll down to find out all there is to know about it.

What Is the Average Vacation Cost ?

Americans from different regions spend different average amounts vacationing every year. Those in the West fork out about $677.78 for vacations at home and $3,805.10 to travel abroad, while those from the Northeast have an annual vacation budget of $438.98 for domestic trips and 2,817.38 for international travels. The average spending on holidays for those living in the South is $$564.51 for travelling locally and $3,169.21 for travelling abroad, while Midwesterners should budget $629.68 for domestic and $3,535.09 for international holidays.

Still, these figures don’t tell us much. The length, destination, and transportation are among the factors that impact the average cost of vacation stays and trips. After all, the average cost of a Sandals vacation can’t compare to the expenditures of staying at a hostel.

Below, let’s go over the average cost of taking a 4-night trip within the States.

Average expenses for a 4-night domestic trip:

• Transportation – $224
• Lodging – $150
• Food/Alcohol – $155
• Entertainment – $52
• Total – $581
• Cost per day – $144

Americans can have a 4-night domestic trip for less than $600 a person. These calculations represent the spending habits of an average US tourist. They can go up or down depending on whether you visit popular spots and book expensive hotels.

One thing is certain, though – the average vacation cost is much higher if you opt for an international trip. Find the approximate costs below.

Average expenses for a 12-night international trip:

• Transportation – $1,755
• Lodging – $683
• Food/Alcohol – $520
• Entertainment – $293
• Total – $3,251
• Cost per day – $271

If we divide these calculations to get the 4-night estimate, we get an average price of $1,083. Meaning, the overseas vacation costs to consider are nearly double those needed for domestic trips.

Cost of US Vacation by Budget Size

Planning your next vacation budget means deciding on the type of holiday you want. Budget-friendly options are often much lower than high-end experiences. BudgetYourTrip has provided valuable insights on the average vacation cost stateside by type. 

Budget-friendly option :

• Daily cost per person – $83
• One week per person – $582
• One week for a couple – $1,163
• One month per person – $2,492
• One month for a couple – $4,985

Regular option:

• Daily cost per person – $223
• One week per person – $1,558
• One week for a couple – $3,116
• One month per person – $6,677
• One month for a couple – $13,353

High-end option:

• Daily cost per person – $633
• One week per person – $4,434
• One week for a couple – $8,869
• One month per person – $19,004
• One month for a couple – $38,009

As you can see, the high-end daily vacation cost per person is a lot more than the budget-friendly option. This just further proves the thesis that the average cost of a vacation is best represented by type. The average spent by budget travelers is helpful for other tourists seeking the same experience. On a similar note, those looking for extravagance should base their expectation on the average costs among high-end travelers.

Average Holiday Cost by Expense Type

Then, what is the average price of food, accommodation, transportation, and entertainment? We have some averages below. 

• Accommodation hotel or hostel – $103
• Transportation (taxi, local bus, subway, etc.) – $37
• Intercity transportation – $152
• Entertainment – $48
• Tips and handouts – $12
• Scams, mishaps, robberies – $94
• Alcoholic beverages – $19
• Water – $14

This average vacation cost breakdown is based on the BudgetYourTrip figures for a regular vacation in the USA for a solo traveler.

Average Cost of a Disney World Vacation

Disney World vacations are popular among solo travelers, couples, and, of course, families. Disney offers a unique experience, and people worldwide are willing to pay high prices for it. Before deciding to visit Disney World, however, it’s smart to plan your spending. There are several factors to consider. In any case, you’ll need about $4,600 for a Disney trip for a family of four.

Here are the estimated prices that affect the average cost of a vacation in American Disney World destinations. Below, you’ll find the average cost of a Disney vacation for 4 for a 4-day trip.

• Flights – $1,200 (could be $800 if flying from the East Coast)
• Accommodation – $440
• Car rental, gas, parking – $365
• Disney World tickets – $1,648
• Food and beverage – $688
• Random spending – $300
• Total average cost of Disney vacation – $4,641

Again, this average Disney vacation cost can go up or down depending on your traveling habits. If you opt for luxurious hotels and get larger rental cars, you’ll spend more. Alternatively, you can go to hostels and prepare some of the meals yourself to save cash.

Another thing to consider is the park you’re visiting. The average Disney World vacation cost for 2 is much higher if you’re traveling from the USA and to international parks. Flight and accommodation costs are usually higher this way. By contrast, if you’re lucky enough to live nearby some of the Disney World destinations, you can expect to spend much less than the average cost of a Disney vacation.

Average Cost of Disney World Ticket Price

As we’re talking about the Disney World experience’s average vacation cost, most of the spending goes to tickets. The average Disney World vacation for 4 calculations are based on the average ticket price of $109. Disney World, however, offers various ticket options to suit the needs of different travelers.

Below, find some popular ticket types that can affect the average cost of a Disney World vacation.

Park Hopper prices per ticket:

• $65 for 1-day tickets
• $75 for 2 to 3-day tickets
• $85 for 4 to 10-day tickets

Park Hopper Plus prices per ticket:

• $85 for 1-day tickets
• $95 for 2 to 3-day tickets
• $105 for 4 to 10-day tickets

Multi-day Disney World price per ticker:

• 4-day ticket – $412 ($103 per day)
• 10-day ticket – $520 ($52 per day)

If you go for the 10-day ticket, expect the average Disney World vacation cost to jump significantly. Staying longer will also result in higher food and accommodation costs.

Average Cost of Vacation in Europe

Europe has always been a top destination among travelers who want to explore fine cuisine, architecture, and historical sights. Visiting the Old Continent, however, doesn’t come cheap. The average cost of a European vacation of two weeks for a solo traveler is nearly $4,000. It’s fair to mention that the average vacation cost to Europe depends on the country or countries you plan to visit.

Below, we’ll go over standard averages on accommodation, transportation, and food. Take these with a grain of salt as most Balkan countries, for example, are much cheaper than top spots like Monaco or the French Riviera. These calculations further include an average hotel price of $150 a night. Yet, some budget-friendly hostels and hotels cost between $15-30 a night. Hence, travelers’ average vacation cost in Europe can go down if you’re willing to sacrifice comfort and luxury.

So, how much does the average person spend on vacation in Europe? The figures apply to a two-week trip and mid-range economy flights.

• Flights – $650
• Accommodation – $1,950
• Car rental, gas, parking – $400
• Attractions – $200
• Food and beverage – $560
• Random spending – $200
• Total – $3,960

Where you fly to, the type of accommodation, and where you eat matter. All these affect the average vacation cost for one person for travelers in Europe. Using a low-cost airline like Wizz Air instead of Lufthansa, for instance, can save you hundreds of dollars. Europe is also cheaper than the US in some regards, for example, EU destinations generally have cheaper healthcare costs by country , for example.

Naturally, destinations are essential too. Below, let’s analyze the vacation costs by country across European top tourist spots.

Italy Vacation Costs

Italy has always been a favorite destination for people traveling to Europe. The country has cities perfect for all seasons, lots of activities, and historical monuments. Plus, it’s the home of pizza, and that accounts for something.

So, it makes sense to analyze the average cost of a vacation to Italy.

• Daily cost per person – $62
• One week per person – $435
• One week for a couple – $869
• One month per person – $1,864
• One month for a couple – $3,727
• Daily cost per person – $157
• One week per person – $1,100
• One week for a couple – $2,198
• One month per person – $4,712
• One month for a couple – $9,423
• Daily cost per person – $397
• One week per person – $2,773
• One week for a couple – $5,548
• One month per person – $11,888
• One month for a couple – $23,775

As you can see, the average cost of an Italy vacation can have a reasonable price but also empty your bank account. Again, your traveling habits will have the biggest impact. The average vacation cost for a family of 4 for a week in Italy is about $600 for standard travelers. Yet, the amount will be over $1,500 for those looking for luxury.

Greece Vacation Costs

Greece is another popular destination in Europe, especially for the summer season. The country is famous for crystal-clear seas and sandy beaches. All the parties, fresh seafood, and historical sights, however, don’t come cheap and can push the average vacation cost higher than Mount Olympus. The average vacation cost to Greece is less expensive than Italy, at least.

• Daily cost per person – $57
• One week per person – $403
• One week for a couple – $805
• One month per person – $1,727
• One month for a couple – $3,453
• Daily cost per person – $146
• One week per person – $1,023
• One week for a couple – $2,045
• One month per person – $4,384
• One month for a couple – $8,768
• Daily cost per person – $372
• One week per person – $2,605
• One week for a couple – $5,209
• One month per person – $11,163
• One month for a couple – $22,328

One of the most popular spots in Greece is Santorini. Santorini is among the Cyclades Islands, and it’s known for its volcanic beaches. Another thing Santorini’s known for? Being pricey. The Santorini average vacation cost is $132 per person per day and $3,962 per person per month.

Croatia Vacation Costs

Croatia has always been popular among travelers coming to Europe. The destination, however, became even more famous after the mega-popular Game of Thrones TV show used Dubrovnik as one of its filming locations. Vacation costs in Croatia have been on the rise ever since. Still, this Balkan country is cheaper than other favorite EU spots like Italy and France.

• Daily cost per person – $37
• One week per person – $259
• One week for a couple – $518
• One month per person – $1,111
• One month for a couple – $2,222
• Daily cost per person – $91
• One week per person – $637
• One week for a couple – $1,275
• One month per person – $2,732
• One month for a couple – $5,464
• Daily cost per person – $215
• One week per person – $1,505
• One week for a couple – $3,009
• One month per person – $6,448
• One month for a couple – $12,897

Average Hawaii Vacation Cost

In 2019, nearly 10.5 million visitors traveled to Hawaii. This figure represented a year-over-year increase in visitors of 5.4%. So, it makes sense that the average cost of a Hawaii vacation is above the average cost of a vacation in the US.

According to BudgetYourTrip, the standard average cost of a Hawaiian vacation is $269 per person per day. This amounts to about $3,765 per person per two weeks. The average cost of a Hawaii vacation for 2 for two weeks is about $7,529.

CreditDonkey reports that the average flight to Hawaii is about $1,000, while a standard room costs about $200-400 per night. Opting for a luxurious experience can boost the average Hawaiian vacation cost as such accommodations are priced at $800 a night. The same report states that people should expect to spend about $100 on food per person per day. So, the average cost of a Hawaiian vacation for 2 for a week is about $1,400 for food only.

Other aspects that affect the average vacation cost include local transportation, entertainment, and water. Expect to spend an average of $29, $31, and $12 on these.

Average Cost of an Exotic Vacation

Americans love visiting exotic destinations with crystal-clear waters, unique cultures, and unusual experiences. While living in those countries is much cheaper than paying your bills in the US, vacationing there doesn’t come cheap. Especially not if you choose luxurious travel packages.

Once again, we researched the average cost of a vacation per person. To get the average cost of a family vacation, you can multiply the figure and get a reasonable estimate.

• Vacation costs for Cuba – Cuba is an excellent destination and a cheap one, too. One person vacationing there spends an average of $34 a day. Couples can stay in Cuba for a week for only $483, while a high-end vacation here costs $1,516.
• Average Bora Bora vacation cost – The average vacation cost to Bora Bora is $147 per person per day. If a couple wants to have a two-week stay, they need to put aside $4,118. Going for a high-end holiday, however, will cost them approximately $7,869.
• Average cost of Maldives vacation – Visiting the Maldives these years is cheaper than Bora Bora. The average cost of a vacation in this exotic location is $60 per person per day. Couples will need $838 and $1,310 a week, depending on whether they want a regular or a luxurious option.
• Average cost of a vacation to the Philippines – Only Cuba and Vietnam are destinations from this list that are less expensive than the Philippines. A solo traveler in the Philippines needs $55 a day and $384 a week. The average vacation budget for a couple for a week in the Philippines is $769 for most tourists. Low-budget and high-end options cost an average of $298 and $2,021 for a week for two people.
• Vacation costs for Vietnam – Vietnam trips have gained popularity in recent years due to the country’s culture, nature, and affordability. Spending a day in most Vietnam destinations costs $41 per person. The average family vacation cost depends on how big the family is. Couples can spend a week here for between $207 and $1,697, depending on whether they seek a budget-friendly or a high-end trip. Every additional person will impact the average cost of vacation there by $41-121 a day.
• Average vacation cost to Japan – The average cost of vacation in Japan is between $53 and $331 per day. The overall average per day for most solo travelers is $133, while couples spend $1,868 per week.
• Vacation costs for Thailand – Thailand has always been famous among thrill-seekers. The country offers options to budget travelers and those seeking luxury and comfort. The average daily cost for a single person in Thailand is between $26 and $207, while the standard average is $71. Couples staying in Thailand for a week need a budget from $346 to $2,903, depending on their spending habits.
• Average vacation cost to Dubai – Going to the United Arab Emirates is everything but cheap. Solo travelers would spend $198 a day, while couples will have to fork out $2,777 for a week. These are standard prices, while high-end vacations are even more expensive. One such week in Dubai could cost couples $7,304.

Tips on Saving Money on Your Next Vacation

If these vacation cost estimates seem too high for your budget, you can always try some tips on how to lower the average cost of a vacation, regardless of the destination. Rocketrip released a report on the best ways to cut down the overall cost of any trip. These savings are impressive for solo travelers but also for families. Imagine how much the average cost of a vacation for a family of 5 would change if everyone employed these tips and tricks.

Find the highlights of how much money can small adjustments save you.

• Fly coach instead of business – $2,975 per round-trip
• Book an early-bird flight – $66 per round-trip
• Book a low-cost airline – $281 per round-trip
• Drop a hotel start class – $54 per night
• Book an Airbnb – $110 per night
• Stay with family or friends – $243 per night

How Much Does the Average Vacation Cost?

There’s no one-budget-fits-all solution for vacations. Every traveler has individual needs and expectations, regardless of if these affect means of transportation, type of food, or accommodation quality. Therefore, the average vacation cost is best divided into groups that fit low-cost and high-end tourists’ spending habits. Consulting these estimations, however, is always a smart step when planning your next vacation budget. Also, don’t forget to try some of the tips and save as much as possible on flights and hotels. After all, these two represent the highest share of the overall vacation cost.

References : RewardExpert , MoneyWeHave , BudgetYourTrip , Business Insider , ValuePenguin , CreditDonkey , Rocketrip

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U.S. Travel & Tourism Statistics 2020-2021

The ultimate fact guide to america's tourism industry including outbound, inbound, domestic & business travel figures..

The American tourism industry is thriving, International and domestic travel is currently contribution over $1.1 trillion to the United States GDP every year. When looking at the annual travel split of domestic and international travel, Americans domestically traveling within the country last year made up the lion's share, totaling 2.29 Billion, a 2% increase from the previous year. Following past US tourism trends, the volume of Americans outbound traveling internationally was of course much less, amounting to 79.6 Million, which was a 3.5% increase from the previous year.

Leisure based travel accounts for 73.8% of all tourism in America, leaving 26.2% for business and other reasons. Overall the tourism expenditure accounts for $1,089 Billion a year, and the industry provides a direct source of employment for 5.29 million jobs.

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TOP U.S. TOURISM STATISTICS:

US Citizen domestic tourism:   Americans take 2.29 Billion domestic trips each year.

US Citizen outbound tourism:   Americans take 93.0 Million international outbound trips each year.

International Inbound Tourism:   Annually, there are currently 79.6 Million international visitors to the US.

$1,089 Billion:   Yearly American tourism expenditure ($932.7b domestic / $156.3b international)

Expenditure sources:   $267.7B on food services, $232.2B on lodging, $200.4B on public transport, $166.5B on auto transportation, $112.6B on recreation, $109.6B on retail.

15.7 Million   American jobs were supported by travel in 2018.

By 2028,   yearly U.S. tourism is estimated to hit the $2.4 trillion mark.

Days/yr. traveled by age group: Gen Z   (29 days) , Millennials   (35 days) , Gen X   (26 days)   and Baby Boomers   (27 days).

Top 5 inbound countries:   Mexico (19.1m), Canada (12.3m), UK (4.9), Japan (3.4), China (2.9)

Top 5 outbound by continent:   Europe (17.7m), Caribbean (8.7m), Asia (6.2m), South America (2.1m), Central America (3.2m)

Top US cities visited:   New York (9.8m), Miami (5.38m), LA (4.98m), Orlando (4.47m), San Francisco (3.57m), Vegas (3.33m)

Business vs. leisure:   U.S. travelers took 466.2 million domestic trips for business (26.2%), and 1,779.7 million for leisure (73.8%)

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US INBOUND & OUTBOUND TOURISM STATISTICS

US domestic travel increased by +2%  YTD in 2019 with Americans taking 2.29 Billion domestic trips.

Domestic leisure travel increased 1.9%   in 2019 to 1.9 billion.

80% of all US domestic trips  were for leisure travel in 2019.

Domestic business travel in 2019   accounted for 464 million trips.

US Citizen outbound tourism:   Americans take 93.0 Million international outbound trips each year. (+6.3% YTD Change)

International Inbound Tourism:   Annually, there are currently 79.6 Million international visitors to the US. (+3.5% YTD Change)

Top 5 inbound countries:   Mexico (19.1m), Canada (12.3m), UK (4.9), Japan (3.4), China (2.9).

Top 5 outbound by continent:   Europe (17.7m), Caribbean (8.7m), Asia (6.2m), South America (2.1m), Central America (3.2m).

Top US cities visited:   New York (9.8m), Miami (5.38m), LA (4.98m), Orlando (4.47m), San Francisco (3.57m), Vegas (3.33m).

Each year,   35% of American families   plan vacations 50 miles or more from home.

In a Travel Leaders Group survey,   24%   of Americans stated they plan to travel to Europe.

22%   of American vacations are via road trips.

USA’s top 5 road trip routes:   #1 Las Vegas – National Parks, #2 Northern California - Southern Oregon Coast, #3 Northern New England, #4 Blue Ridge Parkway #5 Black Hills.

The lion’s share of the United States tourism is from its own citizen’s domestic travel, with over 2.29 billion Americans taking trips within the country. This saw a +2% year to date increase, which is enormous considering that domestic travel spend was worth $932.7 Billion.

As you can see from the US outbound travel statistics above, the number of Americans traveling out of the country is remarkably low compared to domestic travel. According to Trade.gov, outbound tourism hit 93 Million last year and saw a sizable +6.3% year to date increase, showing more Americans are willing to take an outbound trip and travel out the country.

The outbound travel expenditure of these 93 million people was worth $156.3 Billion to America’s tourism industry, so 6.3% is a very significant outbound tourism statistic! The hottest US outbound destinations were Europe, Caribbean, Asia, South America, and Central America.

The US inbound tourism statistics also paint a fascinating picture of America’s continued tourism industry growth, with visitors flocking from Mexico, Canada, UK, Japan, and China. International visitors totaled 79.6 Million with a 3.5% year to date increase, with the top US vacation destinations being cities such as New York, Miami, LA, Orlando, San Francisco, and Las Vegas.

Sources :   Statista ,   AAA ,   TravelLeadersGroup ,   TravelAgentCentral ,   MMGY

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AMERICAS TOURISM INDUSTRY SPEND STATISTICS

American’s spent around   $930 billion USD   on domestic travel in 2018.

In 2017 the amount spent on summer vacations was around   $101.1 billion USD , up from $89.9 billion in 2016.

$1.1 Trillion   / $1,089 Billion: Yearly U.S. travel and tourism expenditure ($932.7b domestic / $156.3b international).

U.S. leisure spend totalled   $761.7 billion   in 2018 from domestic and international travellers.

U.S. business sped totalled   $327 billion   in 2018, with $136 Billion from travellers attending conventions or meetings.

Expenditure Sources:   $267.7B on food services, $232.2B on lodging, $200.4B on public transport, $166.5B on auto transportation, $112.6B on recreation, $109.6B on retail.

Behind nightlife/dining,   travel was voted   America’s most popular choice for spending disposable income at   36%.

$101.1 Billion   is spent every year in America on summer vacations alone.

The average American spends   $6,080 on international trips.

Inbound overseas tourists stay an average of 18 nights and   spend $4,200   while in America.

Overseas travellers account for   84%   of international tourist spend, despite being half of all international arrivals.

Canadian tourists are the biggest spenders with   £22.2 billion   in the U.S. every year.

New York brings in  $16.1 Billion   a year from international visitors.

If you’re wondering how much Americans spend on travel each year, it was huge; International and domestic travelers spent $1.1 Trillion US dollars ($1,089 Billion). Americans spending through domestic travel increased by a massive +5.8% year to date, whereas international tourism spends only saw a 0.3% bump from the previous year. To break this down, this sort of spending would support 8.9M jobs, which in turn would generate $171 Billion in tax and $268 Billion in payroll.

Out of the $1.1 Trillion spending, leisure travelers from both international and domestic spent $762 Billion in 2018, which was a +6.1% increase from the previous year. When looking at business travel spend, it had risen +2.4% to $327 Billion, with 41.5% coming from

What are American tourists spending this $1.1 Trillion on? According to the latest US travel spending statistics, food services such as restaurants, bars, and grocery stores were the most popular spending category at 26.7%. This was followed by 23.1% on lodging, 20.0% on public transport, 16.6% on auto transportation, 11.2% on recreation, and 10.9% on retail.

Furthermore, this $1.1 Trillion spending isn’t the only financial impact of the tourists. When you look at the inputs used to supply or produce the goods travelers desire, and take into account the spend of the employees of travel businesses – there is a considerable multiplier of the financial impact to the US economy, estimated to be a total of $2.5 Trillion.

Sources :  US Travel ,  US Travel 2 ,  Phocuswright ,  TravelAgenctCentral ,  Squaremouth ,  Statista

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US TRAVEL AND TOURISM INDUSTRY JOB STATISTICS  

The travel industry accounts for   7.1%   of America’s private employment.

15.7 Million American jobs   were supported by travel in 2018.

8.92 Million   American travel-related jobs were supported by tourism in 2018 (7.73M domestic / 1.19M international)

$1 Million   in travel revenue directly produces eight jobs with the industry.

1 in 10 jobs   in the U.S. depend on the travel industry (Excluding farming).

$267.9 Billion   in payroll is generated yearly by U.S. travel and tourism ($234.6 Billion domestic / $33.3 Billion international).

$170.9 Billion   in tax revenue is generated yearly by U.S. travel and tourism ($147.3 Billion domestic / $23.6 Billion international).

A massive   $117.4 billion   of the $170.9b in tax revenue was spent on leisure travel, $53.5b on business.

International and domestic business travel generated   $327.3 billion   in 2018 through direct spending.

In 2018, U.S. residents recorded   463.6M   trips for business (38% being events and meetings).

The tourism industry is vital to the US economy, so much so that it accounts for 7.1% of the countries private employment. Overall, 15.7 Million American jobs were supported by the tourism industry last year, making one in eight non-farm jobs dependent on it in some way, direct and indirectly. The trend is on the up, the 15.7 Million American jobs in the travel industry had a +1.3% increase from the previous year.

Jobs, where workers are supplying goods or services directly to visitors, would be classed as ‘direct’ - this supported 8.9 million U.S. travel-specific jobs. The remaining 6.8 Million jobs were classed as indirect, these would include areas whereby workers created goods or services which helped produce the goods or services (sold or used by the 8.9M direct jobs).

The travel industry is known for being extremely labor intensive, its upwards trends have the power to develop new career opportunities much fast than any other niche. If you exclude the farming industry, one in ten jobs would be dependent on the travel industry – as an example, one in five non-farming industry jobs would be created from $1 million sales, but the same value in the travel industry would create one in eight.

Sources :  US Travel 1 ,  US Travel 2

US TRAVEL STATISTICS BY DEMOGRAPHIC

42%   of Americans own a passport, up from 27% 10 years ago.

Days a year traveling by age: Millennials ( 35 days ), Gen Z ( 29 days ), Baby Boomers ( 27 days ), and Gen X ( 26 days ).

Millennials :   62%   of parents travel with kids under five.

Millennials :   58%   prefer traveling with friends, 49% book last-minute vacations.

Millennials :   58%   want to solo travel,   26%   already have.

Solo Travel Women:   Take 3 more trips a year and are the most likely to travel alone.

Solo Travel: 43%   take over three trips a year.

Solo Travel: 50%   have a college or university diploma/degree.

Family: 4 out of 10   plan a trip with a family each year.

Family: 80%   take summertime trips to travel with family.

Family: 42%   opt for spring break vacations.

Baby Boomers:   Aim to take 4+ leisure vacations a year.

Baby Boomers: 30%   opt for a cruise as their vacation choice.

When analyzing the latest US outbound travel statistics by age, it was clear that millennials are the group willing to travel for the most extended period at 35 days a year, while generation X vacationed an average of 26 days.

Millennial Americans that are without children are now less of the typical ‘tourist’ and more of the ‘experience’ generation. Most of their booking habits are focused on exploring cultures, booking retreats, or activities rather than visiting theme parks and tourist trap areas. Their freedom and spontaneity let almost half of them book last-minute vacations, with or without friends as, to them, solo travel means cultural growth and meeting new people.

These travel age statistics also show us that half of the solo travelers take up to 3 more trips a year, have a college or university degree, and American solo travel is more prominent in women. What percentage of Americans own a passport? The myth was only one in ten do which appears in many blogs across the web, but now the Census and State department confirm that over 42% of Americans own a passport.

One travel by age group statistic shows almost one in three baby boomers opt for a cruise as their vacation and aim to take at least 4 trips per year. When it comes to families, the majority go during summer break (80%), and only 4 in 10 plan trips with their family. However, millennial families are far more likely to travel with younger children, at 62%.

Sources : Expedia, Resonanceco,  InternetMarketingInc ,  PRNewswire ,  SoloTravelWorld ,  TravelAgentCentral ,  NYU 1 ,  NYU 2 ,  AARP ,  TripAdvisor

REASONS AMERICANS TRAVEL FACTS & STATISTICS

Business/Leisure: U.S. travellers took   466.2 million   domestic trips for business (26.2%), and   1,779.7 million   for leisure (73.8%).

Family:   95%   prioritized their family to be happy and entertained.

Family:   89%   prioritized vacation deals and value.

Family:   85%   needed planning around school holidays.

Family:   85%   wanted outdoor activities for their family.

Gen Z:   55%   travelled to increase their knowledge and experience.

Gen Z:   40%   travelled to avoid stress and relax.

Millennials:   43%   want to find themselves.

Millennials:   23%   want to meet new people.

57%   of U.S. travellers would choose a free heritage vacation over alcohol for a year.

56%   of global international travellers agree it taught them life skills.

51%   want to escape normal life and recharge mentally.

42%   take trips to visit friends and family.

35%   are travelling to experience local delicacies.

Top   bucket list vacations   are volunteering trips (39%), food travel adventure (38%), mystery journey (38%), ancestry/heritage trip (36%), and sabbatical (36%).

59%   of solo travellers stated the reason they went alone is to see the world without waiting for others.

Why do Americans travel? When looking at the data from several survey sources, it was clear that the gender and age of respondents had little impact on the three most important factors.

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The most important reasons why Americans travel were:

Being with friends and family

Fun experiences (did index higher in younger generations)

Relaxing and unwinding

In terms of gender-based travel reasons, men indexed higher than women overall for exploring the great outdoors or outdoor activities that fall into that category. Generation Z, Millennials, or general age groups from 18-35 had higher responses around wanting to travel for music events or festivals than people aged 35 and over.

The most important trend we’ve noticed from reviewing multiple studies around American’s desires for travel is that younger generations are factoring in ‘experience tourism,’ this was very common in their responses. Experience tourism can be defined by people wanting to book activities or retreats, meet new people and ‘find themselves’. This is popular among solo travellers, like a cultural trip to Thailand for a detox retreat rather than visiting a traditional tourist attraction like a theme park.

Americans over 35 were keen on finding a vacation where food and drink was priority. Visiting a town or city that had cultural foodie scenes or breweries were very trendy.

Sources : ShortTermRentalz,  Wysetc ,  Trekksoft ,  TravelNews ,  USTravel ,  Booking.com ,  HospitalityNet ,  SoloTravelWorld

US TOURISM & TRAVEL ACTIVITY STATISTICS

Top 5 culture activities:   #1) 65% visit history/art museums, #2) 59% visit aquariums, #3) 56% visit science museums, #4) 55% visit theme parks, #5) 55% visit zoos

73%   of families take their children to a theme park, 34% aim for a world famous one.

Overseas visitors top 5 activities:   #1) 54% Shopping, #2) 49% visit historical/cultural sights, #3) 49% Restaurants, #4) 46% Monuments / National Parks, #5) 46% Sightseeing tours.

Trending:   89% increase in sunset cruise excursions trips since last year.

Trending : 64% increase in snorkelling activities since last year.

Trending : 55% increase in sailing trips since last year.

Trending : 49% increase in kayaking and canoeing experiences since last year.

33%   of visitors will get spa or beauty treatments while on vacation.

15%   of travellers book mindfulness or meditation retreats.

One of the reasons Americans do not travel abroad that much is that there is so much to offer in their own country. There is a wealth of cultural activities such as art galleries, museums that index high on the popular activities list, not to mention the volume of theme parks, zoos, and aquariums across the country.

Families want to book all-inclusive trips where everything is taken care of, and they can focus on shopping or taking their children sightseeing. An overwhelming volume of people wanted to book a cruise in the future, which pairs well with relaxing is one of the most popular reasons for travel data above. Cruises were particularly popular in respondents over the age of 45, as well as self-guided tours, whereas group tours were one of the least popular options for booking.

Even though sporting related activities are trending up, going to a physical sporting event was one of the least popular reasons Americans book travel, with most wanting to support their team… from home.

Sources :  MMGY ,  NYU , StatisticBrain,  TripAdvisor ,  Booking.com

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US TOURISM BOOKING STATISTICS

65%   of hotels are booked on the smartphone the same day as it was researched.

79%   of Americans researching trips will eventually book on their smartphone via app or online.

90%   of U.S. travellers use apps at their destination to make life easy.

#1 factor   in Americans booking travel is price, but reviews and amenities are close runners up.

Americans aged 18-24 classed   reviews   as the second most crucial factor in the booking.

Overall, travel is most commonly booked between   1 to 3 months   in advance.

Men are more likely to last-minute book their trips   2 to 4 weeks   out.

Excluding price as the main factor for Americans booking travel, amenities, and reviews were the most popular choices. So when comparing hotels, resorts or cruises of similar price, these are the factors that will sway the booking decision.

Popular amenities people look for when booking hotels are free breakfasts, pool access, fitness centers, and on-site restaurants. Public transportation was the least influential factor for people considering amenities when booking; this increased with ride-share options.

Only 11% of travellers book trips 6 months out; the most standard booking periods were for trips within 1 to 3 months.

Demographics wise, travelers without children would be the target market for last-minute booking, the no strings attached lifestyle leaves their schedules open. This makes them the ideal target for using last-minute deals to sign them up to hotel or travel loyalty programs.

Sources : StatisticBrain,  ThinkWithGoogle ,  Trekksoft

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The average cost of a vacation: Transportation, food, entertainment and more

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As another travel season approaches, many consumers are planning how much they’ll need to spend on such items as flights and accommodations, with the caveat that these costs are higher than they’ve been in previous years.

While inflation has slowed, its effects persist. According to Bankrate’s Summer Vacation Survey, 47 percent of Americans aren’t planning a summer trip this year. Nearly two-thirds (65 percent) of those people cite affordability. Strategic financial planning will be essential for managing travel costs while still making invaluable travel experiences.

Vacation costs vary tremendously depending on such factors including the destination, accommodations and activities. Here are some average costs to help you budget your vacation and manage increased costs.

Key vacation cost statistics

• For a one-week vacation in the U.S., the average cost for one person is  $1,991. (Budget Your Trip)
• A one-week vacation in the U.S. for two people jumps to an average cost of $3,982. (Budget Your Trip)
• Round-trip flights to Europe from the U.S. are averaging around $918,  between May and September 2024. (The Points Guy)
• The average cost for a double occupancy hotel room in the U.S. is $259 per night. (Budget Your Trip)

How much does a vacation cost?

The average cost of a one-week vacation in the U.S. for one person is $1,991 . Many Americans, keeping in mind the cost of traveling, plan to take various measures to reduce how much they’re spending on such expenses as travel and accommodations.

Transportation costs

Transportation can account for a large chunk of your vacation budget, so it’s a good idea to start with these costs when planning your trip. In addition to airfare, factor in any other costs such as car rental, gasoline, tolls and parking fees.

Airfare tends to peak in June, with the highest prices around the summer months in general. Fares will peak this summer at $315 for a round-trip domestic ticket, with prices remaining in line with those of last year, according to Hopper.

To keep traveling budget-friendly amid rising costs, many consumers are making changes to their plans. Over one-quarter (27 percent) say they’re driving instead of flying to their destination this year, according to Bankrate’s holiday travel survey. Meanwhile, 21 percent say they’re traveling a shorter distance, and 17 percent say they’re using rewards points or loyalty programs to help pay for travel.

Keep in mind: More than one-third (36 percent) of U.S. adults traveling this summer will take on debt to pay for their vacation, according to Bankrate’s Summer Vacation Survey. Ways you can avoid vacation debt include taking a shorter vacation or a staycation.

Hotel and other accommodation costs

Hotel prices vary dramatically depending on the location, demand and time of year. An oceanfront hotel room in South Florida, for example, will cost less in the winter months than in summer, when deals can be found.

If your budget isn’t generous and you’re OK with fewer comforts, hostels or a recreational vehicle park can save you money.

When planning a vacation, you can also save by choosing a destination that’s less popular, while still offering value in experience. France, one of the most popular destinations, costs on average $1,753 to visit for one week. Meanwhile, the average cost for a week-long trip to Zagreb, Croatia, costs $574 on average, according to Budget Your Trip.

Food and entertainment costs

Food and entertainment expenses can lighten your wallet if you don’t draft a thorough vacation budget. They tend to be among the last costs travelers consider when planning a trip.

The average cost of food for one person on vacation, per day, is $58, according to Budget Your Trip. This figure doesn’t include snacks, tips or alcohol.

Budgeting for a family vacation can be trickier than budgeting for a solo trip, especially if young children are coming along. You probably won’t be eating at posh restaurants and strolling museums with kids in tow, but you likely will have to budget for a bigger hotel room and reservations for activities they’ll enjoy. Don’t forget to look for group rates and discounts, if eligible.

Average cost of a vacation by generation

Data from Squaremouth , a travel insurance company, shows that older generations spend more on travel than younger generations, on average. The Silent generation — the oldest living generation — spends over $3,500 per trip, on average. By contrast, Generation Zers spend just under $2,000 per trip, on average.

The higher vacation costs for older generations may be due to them having more savings , longer trips or a number of other factors. Still, while Gen Zers are spending less on travel, they’re more likely to travel for fun : 68 percent of Gen Zers planned to travel for leisure in 2023, according to Bankrate’s travel problems survey .

During the 2023 holiday season, younger generations were also more likely to change their travel plans due to inflation. Of Gen Z holiday travelers, 86 percent changed their travel plans for cost reasons, followed by millennials (80 percent), Gen Xers (77 percent) and baby boomers (68 percent), according to Bankrate’s Holiday Travel Survey.

Vacations and inflation

Increased costs for airlines, accommodations and other travel-related services contribute to higher overall trip expenses. Since this time last year, the average cost for a one-week vacation in the U.S., has risen by $413, or about 26 percent.

These high costs, coupled with diminished purchasing power, prompts consumers to make adjustments in their travel plans, either by choosing more economical options, shortening their vacations or, in the worst case, forgoing travel altogether. According to Bankrate’s Summer Vacation Survey, 65 percent of U.S. adults not planning to travel this summer say it’s because they can’t afford it.

But you don’t have to give up the idea of traveling this year because of costs. Instead, strategic planning and setting priorities can ensure you’re traveling within the capacity of your wallet.

Vacation budgeting tips

More than a one-third (36 percent) of U.S. adults traveling this summer say they will take on debt as a result, according to Bankrate’s Summer Vacation Survey.

“We have most definitely put a bit too much emphasis on spending money during the holidays,” says Aja Evans, LMHC, Financial Therapist at Laurel Road, a division of KeyBank. “While I love the value of coming together during this time, the costs can quickly add up.”

Here are some tips to help you get the most trip for your money :

• Determine how much you can spend on the vacation and draft a budget.
• Start a vacation fund, such as a sinking fund , in a high-yield savings account .
• “Prioritize your must-attend events” rather than traveling for every holiday, says financial therapist Aja Evans, LMHC.
• Avoid paying high prices for lodging at popular destinations by finding accommodations slightly farther away.
• Save money by visiting destinations during off-seasons.
• Search for inexpensive flights and book in advance. You might save money on international flights by booking the cheapest flight to the destination country, followed by another flight to the particular city you wish to visit.
• If traveling abroad, find places that offer the best currency exchange rates.
• Consider using a prepaid debit card to control daily spending or a good travel rewards credit card to earn cash back on certain purchases.
• Plan meals, and work them into your budget accordingly. If you wish to eat at a high-end restaurant for dinner, choose an inexpensive meal for lunch.
• Plan what you’ll need to bring, and pack those items in your travel bag. This can help you avoid buying things on the trip that you forgot to bring, such as toiletries or over-the-counter medicine.

Budgeting for a family vacation can be trickier than budgeting for a solo trip, especially if young children are coming along. You probably won’t be eating at posh restaurants and visiting many museums with young kids in tow, but you will have to pay for a bigger hotel room and plan for activities they’ll enjoy. Don’t forget to look for group rates and discounts, if eligible.

Bottom line

The main budgetary components of a vacation include lodging, transportation, food and entertainment — all of which cost more now than they did in past years, due to the effects of high inflation.

While all aspects of a vacation can be pricey, it’s possible to lower your costs significantly through such activities as budgeting, traveling during the off-season, finding affordable ways (and places) to eat and planning early.

And, of course, setting money aside early and often can help you get the most out of your vacation. “Setting up a sinking fund you contribute to throughout the year can alleviate the last-minute pressure to spend money you don’t have,” financial therapist Evans says.

— Former Bankrate writer René Bennett contributed to a previous version of this story.

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Travel price index.

MONTHLY INSIGHTS August 14, 2024

The Travel Price Index (TPI) measures the cost of travel away from home in the United States. It is based on the U.S. Department of Labor price data collected for the monthly Consumer Price Index (CPI). The TPI is released monthly and is comparable to the CPI. 

The latest: The U.S. Bureau of Labor Statistics Consumer Price Index (CPI) release for July reflected a continuation of the encouraging trend of stable prices both for consumers overall and for travelers. Overall prices rose slightly for the month, while travel-related prices were flat.

According to the U.S. Travel calculated Travel Price Index (TPI), prices were on average the same in July as for the prior month. Airline fares were down 1.6%, and other travel-related costs—such as lodging, transportation, and food and beverages outside the home—all rose at the same or lower rates than the economy overall. Recreation costs grew at a slightly higher rate than prices overall on a monthly and year-over-year basis but have risen more slowly since the pre-pandemic period.

“Overall, comparisons month-to-month, year-over-year and against pre-COVID-19 levels all show today’s prices are more favorable for travelers,” said Josh Friedlander, Vice President of Research at the U.S. Travel Association.

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U.S. Travel updates the TPI monthly following the CPI release from the Bureau of Labor Statistics (BLS).

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The Average Cost of a Vacation: 2021 Trends Report (Plus money-saving tips)

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A vacation budget helps you set parameters and expectations to not come home with an unwanted souvenir: debt. Transportation, lodging, food, and entertainment represent just a few of the costs incurred during a vacation. Statistics on the average cost for each category can give you a ballpark estimate to help you start planning a trip. Still, it’s important to remember that vacations are highly variable. The actual cost of a holiday is affected by numerous factors, such as the number of people traveling, the time of year, the distance traveled, and the destination itself. 

There are also hidden fees to consider, so it’s wise to add a bit of padding to your final budget. Also, with the COVID-19 pandemic causing disruptions at a moment’s notice, it may be beneficial to purchase travel insurance for your 2021 vacation. 

You’ll also need to keep a close eye on prices that fluctuate significantly according to supply and demand, like transportation and lodging costs. When the pandemic began, prices fell significantly due to widespread travel restrictions and social distancing guidelines. For example, the price of airline tickets dropped by  nearly 16%  in 2020. Now that COVID-19 immunization rates have increased and travel restrictions are lifting, travel demand is expected to surge in 2021. Expect prices for transportation, lodging, and finite-capacity activities to grow as a result. 

What is the “average” vacation?

As of 2019, about  40%  of American families plan at least one vacation per year. Sixty-eight percent of those trips occur in the summer, but domestic tourism remains popular from  April through October . Due to increased demand, transportation and lodging costs increase during this time.

According to data from the U.S. Bureau of Labor Statistics’ Consumer Expenditure Survey , an average four-day domestic vacation costs $581, or $144 per day. Transportation represents 38.5% of the total cost of an average vacation, food and entertainment represent 35.6%, and lodging represents 25.8%. For a 12-day international holiday, the average American spends a total of $3,251, or $271 per day. In this scenario, transportation represents 53.9% of the total cost, food and entertainment represent 25%, and lodging represents 21%. 

Other sources,  Credit Donkey , suggest that Americans spend $1,145 per person for the average vacation. While the results of a  Bankrate  survey say that Americans plan to spend over $1,900 on their vacations. 

The Baby Boomer generation spends about $6,600 on vacations each year, on average. Gen X-ers spend about $5,400, and Millennials spend an average of $4,400. According to Travel Agent Central , all in all, the average American spends nearly $2,000 on summer vacations in particular. In 2021, most Americans plan to spend about  $737  on their first post-pandemic trip, which will likely be spent visiting family and friends.

Not everyone can afford to travel, but that doesn’t stop some from going on vacation anyway. A  2019 Vrbo survey  found that 37% of millennials were willing to go into debt to travel, whereas just 27% of Gen X-ers and 15% of Baby Boomers said the same.

Vacation transportation costs

Simply getting to and from your destination can represent nearly 40% of your vacation’s total expense. You’ll also need to factor in the cost of traveling from the airport, bus station, or train station to your lodging. If you want to hire a taxi, research the destination city’s  typical fare charges . 

AAA found that about 53% of American families plan a road trip each year, so travel expenses boil down to gas prices, tolls, and any car maintenance that you perform before hitting the road. But even if you fly to your destination, you might want a car to get around. Kayak estimates that it costs an average of $52 per day to rent a car in the U.S. 

Train travel in the U.S. can cost as little as  $7 per ticket  to as much as $348, with the average train ticket costing $120. Rail travel is more prevalent in Europe, and  prices depend  on the length of the trip.

The price of bus tickets also depends on the length of the trip. They average  $83  but can cost as much as $425. If you need to hop on a public bus in your destination city, fares are usually around $1.

In 2020, the average cost of a round-trip domestic flight was  $302 , whereas the average international plane ticket cost  $1368 . These baseline prices do not include baggage fees or even the cost of parking your car at the airport, which can increase your overall travel costs. 

Cruise fare averages about  $160 to $220  per person, per day. However, Tanner Callais of  Cruzely.com  points out that the pandemic has changed the balance of supply and demand within the cruising industry, which will likely drive prices toward the higher end of that spectrum. 

“During the pandemic, cruise lines have taken the opportunity to scrap older ships,” Callais explains. In addition, “cruise lines have said they plan to return in a staggered approach, with only a few ships at a time and likely with limited capacity to encourage social distancing.” From Callais’ perspective, “The result is likely higher prices until more capacity is added.”

Vacation lodging costs

The typical single-occupancy hotel room in America costs  $103  per night. A standard double-occupancy hotel room costs exactly twice that amount: $206. Prices vary in every city and. For example, an  average hotel room  in Las Vegas costs $127 per night, but the average hotel room in New York City costs $258 per night. Hotel room costs also fluctuate based on consumer demand, so you can expect them to be more expensive during the most popular vacation months and on Fridays and Saturdays.

In comparison, the  average AirBnB price  in the U.S. is $171 per night as of 2020. However, depending on prices in your destination city, you might end up with a great deal by choosing AirBnB or Vrbo instead of a hotel. For example, the average AirBnB for New York City is $113 per night, but in Las Vegas, AirBnBs cost an average of $164 per night. 

Don’t need any bells and whistles? More affordable options include motels ( $45 to $100  per night) and, in certain cities, hostel dorm rooms ( $25 – $40  per night). 

If you want to stay in your RV, you’ll still need to factor in campground fees so you can enjoy electricity and plumbing during your vacation. Campground fees in the U.S. range from about  $25 to $80  per night. 

International hotel costs also vary significantly from city to city. South American hotels are among the most affordable, with the average Bogotá hotel charging just  $47 per night . At the other end of the spectrum is Zurich, where the average hotel costs $255 per night.

Food and entertainment costs

What you do during your vacation also affects your budget. According to a  2014 survey , shopping is the most popular vacation activity among U.S. travelers, with 54% of respondents saying they shop while on vacation. Of course, this activity inherently costs money and can quickly eat into your budget if you’re not careful. Plan in advance how much money you’re willing to spend on souvenirs and the kind of items you’re interested in buying (such as t-shirts, trinkets, local artwork, etc.) to help you avoid spontaneous spending.

Swimming and watersports were the next-most popular activity on the survey. Most summertime destinations have public beaches, but they can get crowded during peak season. You can pay to stay at a resort with a private beach for a quieter, less crowded experience. Such an option can cost anywhere from  $144 to over $2,000 per night . And if you want to do anything other than swim, budget for equipment rental fees. For example, you can expect to pay around  $500  to rent a jet ski for the day, up to  $95  for a windsurfing session, and between  $25 and $60  to rent a kayak. 

Tours  remain popular vacation activities for about  46% to 49%  of U.S. travelers and can include walking, biking, driving, or even hopping on-and-off a bus. Although you can take yourself on a walking tour for free, hiring a guide enhances the experience by providing historical context for everything you see. According to Jacquie Whitt, a tour operator with  Adios Adventure Travel , travelers should expect guided tours and activities to be private affairs thanks to the COVID-19 pandemic. While this “will increase costs for solo travelers more than families,” Whitt explains that “both solo travelers and small groups benefit from lots of individual attention, bringing more value to the dollars they spend.” 

According to the  U.S. Travel Association , fine dining is the fourth most popular vacation activity among domestic travelers, behind visiting relatives, shopping, and visiting friends. Costs vary from destination to destination and from restaurant to restaurant. Plan ahead by looking up a few local restaurants and evaluating their prices. Do the same for street food vendors, if applicable. Expect to spend  $24 to $40  (or more) per person on food, excluding snacks, alcoholic beverages, and tips.

Budgeting tips that can save you more money on a vacation this year

Save money on vacation by planning your full itinerary in advance — right down to the snacks — and then adding a buffer of $100-$200 for surprise expenses. Don’t forget about taxes and gratuities when creating your budget. Try to avoid spontaneity while on your vacation, unless it’s to enjoy a free experience, but carry at least $20 with you at all times.

Not sure where to go? Yulia Saf of  MissTourist.com  advises tourists to save money by sticking to regional trips rather than cross-country or international excursions. “The new way of traveling on a budget from here on out is regional trips,” which “do not require you to fly or book a travel company.” Saf recommends “glamping, private cabins, or staycation units located outside busy cities” as budget-friendly leisure travel options. 

Saving money on transportation costs

The best way to save money on transportation costs is to avoid peak travel times. Demand is low during January, February, and March because there are no major holidays or school breaks during those months. As a result, you’ll pay less for everything from  plane tickets  to  cruise fares  and even  train tickets . 

Sometimes flying ends up being cheaper than driving and vice versa. Use a  drive-or-fly calculator  to help you discover the most affordable option.

If you plan to fly, departing and arriving during the middle of the week will save you money, with  Tuesday  generally considered the cheapest day to fly. Most travelers prefer the convenience of mid-morning or afternoon flights, so flights that depart at the crack of dawn or in the evening tend to offer the cheapest rates. 

Knowing when to buy your tickets can also lead to savings. For domestic flights, book about two to three months in advance. For international flights, book five to eight months ahead for the best deals. Plane and cruise ticket prices also fluctuate based on the day of the week and even the time of day that you look at them. It’s worth carving out some free time in the middle of the week — especially Thursdays for international flights — at a time when everyone else is busy (think mid-morning or early afternoon) to scout out prices and officially book your trip. Download an app like Priceline, Hopper, or Kiwi to help you monitor fluctuating prices.

Saving money on lodging costs

Hotel prices also vary based on the time of year and day of the week, and “peak season” differs in every destination. For example, warm beaches remain popular in winter, as do ski resorts. Festivals and other significant events can also cause a surge in lodging demand in a particular city. Research your destination ahead of time to discover when tourism slows down, as you’ll be able to nab the cheapest hotel rates for this period.

The cheapest day for hotel check-ins is usually  Sunday  when most people check out and leave the hotel empty. If you don’t mind taking a gamble, book your hotel room 24 to 48 hours in advance. You can get cheap last-minute deals by filling a room after someone else cancels during their 24-48 hour grace period. Otherwise, book at least one month in advance, especially for popular destinations. 

Saving with rewards cards

Around  26% of travelers  say they will use a rewards credit card to save money on an upcoming trip. If you’re not already part of that statistic, start learning more about travel rewards. Credit card rewards from the top airline cards or best hotel cards can be earned on everyday purchases and used to provide real cash value or to earn fun upgrades and perks, like a better seat on your flight. With the right card, your out-of-pocket vacation costs can be significantly reduced.

Bottom line

There are lots of moving parts when it comes to planning a vacation. While budgeting for your next trip may not be a simple task, it can help you avoid debt. So, try and factor in the variety of costs you’ll incur while on the road, like transportation, lodging, food, and entertainment. A ballpark estimate is a great starting point. And don’t forget, there are several fantastic travel rewards cards that you can use to help offset the costs of your next getaway.

Cathy Habas

Contributor

Cathy Habas is a contributor to Million Mile Secrets, he covers topics on points and miles, credit cards, airlines, hotels, and general travel.

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Tips for budgeting on vacation

• Make reservations far in advance. Travelers can save up to 38% by booking rental cars three months out.   
• Travel to locations outside their peak seasons. This can help you earn discounts on airfare and lodging. 
• Use credit cards that have travel rewards. These, along with customer loyalty programs, can help you earn discounts for future vacations.
• Save money on food by preparing meals. Booking a vacation rental with an on-site kitchen can save money on eating out. Or you can also take advantage of a complimentary hotel breakfast. 

Average vacation cost FAQ

01 : how much does the average vacation cost for one person.

The average vacation cost for one person in the United States is about $1,986 per week. Individual costs will vary based on the traveler’s mode of transportation and lodging.

02 : How much should I budget for a vacation?

Your budget for a vacation will, of course, vary depending on many factors. Many people set aside 5%-10% of their net yearly income for leisure travel, but your savings will depend on the type of vacation you’re planning.

03 : How much cash do you need on vacation?

You should have roughly $50 to $100 per person every day of your trip.

04 : Are vacation expenses cheaper if you book in advance?

Booking in advance can often lead to lower prices due to early booking discounts, better availability, increased flexibility and the ability to avoid last-minute price surges.

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National Household Travel Survey Long Distance Travel Quick Facts

Long Distance Trips are more than 50 miles from home to the furthest destination.

HOW WE TRAVEL

• 7 percent of long distance trips are by air
• 2 percent of long distance trips are by bus
• 1 percent of long distance trips are by train
• Personal vehicles are used for almost all trips less than 300 roundtrip miles
• Nearly three-fourths of trips over 2,000 roundtrip miles were made by airplane

HOW FAR WE TRAVEL

• Americans total 1.3 trillion person-miles of long distance travel a year on about 2.6 billion long distance trips.
• Air - 2,068 miles
• Bus - 287 miles
• Personal vehicle - 194 miles
• Train - 192 miles

WHY WE TRAVEL

• 56 percent of long distance trips are taken for pleasure — vacations, sightseeing trips, visiting friends or relatives, outdoor recreation
• Business trips are 16 percent of long distance trips
• Commuting to work is 13 percent of long distance trips

WHERE WE TRAVEL

• 98 percent of long-distance trips are to destinations within the United States
• 62 percent of long distance trips are to destinations within the traveler's home state (intrastate travel)

WHO TRAVELS

• Men make 57 percent of long distance trips
• Women make 55 percent of long distance trips taken by bus — men make the most long distance trips by personal vehicle, air and train
• 57 percent of long distance trips are made by travelers with a total household income of $50,000 or more
• Almost two-thirds of long distance trips are made by travelers age 25 to 64

SOURCE: National Household Travel Survey, 2001-2002.

The cost of traveling Europe: real budget numbers from 9+ years of travel

What is the real cost of traveling Europe?

How do you afford to do it full-time? 

How much do I need to save if I want to travel in Europe for a year (or two years or a month or six months)?

As someone who has been traveling full time for nearly nine years, most of that time in Europe, these are probably the questions I get most often about my lifestyle.

Money, unsurprisingly, is the biggest obstacle people think they’ll face on the road. Because if vacations are so pricey, wouldn’t full-time travel be even more so?

(Psst.  Here’s a full breakdown of why it’s not .)

This is why for the last 10+ years, while I’ve been traveling full-time, I’ve kept track of my budgets  all over the world. Because the truth is that full-time travel can be expensive (just like staying put can be expensive), but it doesn’t have to be . And the only way I know to prove it is to share my own real budgets.

Today, I’m back to share more budget updates with you. More insights into how I travel full-time and what it costs to live and travel in Europe.

First, though, let’s talk about travel styles…

What full-time travel looks like for me

First, it’s important to say that there’s no right or wrong way to travel full time . There’s no standard. Every person I know who does it does it differently .

I have friends who circle back to their favorite places every single year. I have friends who are always chasing new adventures. I’ve met digital nomads who live out of hostels and move every few days and nomads who spend a year or more in one place.

So, before I dive into how I travel, I’ll caveat it by saying that my way is not the way . There are people who travel on a much lower budget than mine and people who travel on a higher budget than mine. There are people who travel faster and people who travel slower. This budget breakdown is based on my experiences and my experiences alone.

Okay, so what are my experiences ? 

For the first few years, I traveled solo with my dog . For five years, I traveled as part of a couple (though my budgets here on the blog reflect my half of shared expenses + 100% of my personal expenses). And now I’m back to solo-girl-with-dog-takes-on-the-world. ( Here’s a comparison of costs solo vs. traveling with someone else .)

I mostly travel around Europe, though I’ve also done a bit of North and South America in the past few years (and before I hit the road full-time, I visited every continent except Antarctica). 

I prefer to stay in one place for at least a month (and sometimes two or three) and I tend to rent comfortable apartments in local neighborhoods. If I’m staying in a hotel or hostel, it’s usually only for a weekend trip or a travel day.

I’m a foodie through and through, so I devote a large portion of my budget to good, fresh, usually organic food and I eat out pretty regularly, especially if I’m in a place known for its cuisine.

I work part-time (on writing books , content strategy and copywriting ). This means big chunks of my week are devoted to work, so someone retired or vacationing is likely to spend quite a bit more than I do. 

And in my spare time, I love to cycle, hike, read, explore, and eat, most of which is cheap or free and keeps entertainment budgets on the low side. I rarely do museums or indoor attractions.

The cost of traveling Europe: monthly expense breakdown

Before we get into individual budgets around the world, here’s a breakdown of my general monthly expenses and how I approach them:

Housing : This was my biggest expense in the US, and it’s my biggest expense now. From 2012 to 2015, when I was traveling solo, I spent about $1,000 per month. In 2015 to 2021, my partner and I split the rent, so we could afford a nicer space and usually keep our individual spending on the lower side. I shot for under $800 per person per month and we often came in under $600 each. Now, solo again and with accommodation prices having risen over the years, I’m upping my housing budget to $1,500. I’ll still try to come in under when I can, but that’s my new ceiling.

So, what’s the secret to affordable accommodations while traveling in Europe? Traveling slow. Monthly rental costs are significantly lower than nightly or weekly rentals. On sites like  Flatio and Airbnb, monthly discounts run anywhere from 20% – 70% .

Food:  Perhaps unsurprisingly, this foodie’s second highest expense is meals. I track my spending on groceries separately from my spending on eating out. I don’t put a budget ceiling on groceries because eating fresh, high-quality food is really important to me and I’d rather spend a bit more on groceries (and a bit less on other things) than take shortcuts with my health or joy. 

In the states, I shopped at organic grocery stores and tried to buy healthier options, which were often a bit pricier. In Europe, I shop at fresh markets, local butchers, and tiny bakeries most of the time and stay away from imports that might have questionable chemicals or ingredients.

I always strive to only buy what I need and to buy it in the best quality, most local form I can. I mostly cook at home instead of eating out and when I do eat out I go for quality over quantity. 

Recent grocery budgets have run about $393 ( Zagreb, Croatia ), $614 ( Thun, Switzerland ), $653 ( Bad Ischl, Austria ), and $429 ( Tartu, Estonia ). Eating out budgets in those same locations were around $257 (Zagreb), $0 (Thun), $41 (Bad Ischl), and $88 (Tartu). This means totals for those three places landed at $650 (Zagreb), $614 (Thun), $694 (Bad Ischl), and $517 (Tartu). As you can see, food spending varies, but not enormously. If you read my older budgets, you’ll also notice that the average has gone up over time (which makes sense, because inflation).

Transportation: Since I tend to stay longer in one place, transportation costs generally run pretty reasonable (e.g. far less than I spent when I owned a car). Every month or two, I buy a long-distance train ticket or two, and maybe once or twice a year I take a flight (though I try to fly as little as possible both because I hate flying and I try to be conscious of my environmental footprint).

In between big train journeys, I  choose to walk whenever possible  (which, in Europe, is nearly always) and only take buses and metros when the weather is walking-prohibitive, if the walk would be more than an hour long, if I’m carrying something heavy, or if I’m in a particularly busy city and the walk would be crowded or stressful. 

These days, I spend anywhere from about $25 (Prague unlimited monthly transit pass) on a month where I’m staying put to $300ish (trains from Rennes, France, to Prague, Czech Republic) on a month when I’m moving from one base to another.

Luna the traveling pooch’s food and care: This varies a little from country to country, but rarely exceeds $200 per month. Luna eats a homemade diet primarily consisting of rabbit, fish, quinoa, and veggies (the diet was created with a veterinary nutritionist and if you decide to do the same, I highly recommend hiring one through your vet), and I’m not very strict about separating her food budget from mine, so expect that some of the grocery budget is actually going to Luna.

As with human health care, I’ve found vet care to be significantly more affordable in Europe (compared to the US). In Latvia, four injections, a blood test, two weeks of pancreatic enzyme pills, a vet consult, and an exam cost just over $100. In Dubrovnik, Croatia, in a similar vet emergency, the bill for the sedation, IV fluids, blood work, x-ray, exam, anti-nausea shot, and 100 days worth of pancreas pills was about $150. In the US, the cost would have been at least tripled in each of those cases. A single blood test in Colorado cost us upwards of $200 last time we were there.

Entertainment/fun money:  When I’m traveling, most of my activities are free or cheap, so this line item is always pretty small compared to the others.

Supplies:  These tend to run less abroad as well, in part because I am careful about what I buy, since I carry everything on my back, and, in part because I’m less bored and thus feel less of a need to shop. The ironic and wonderful thing about this is that the things I buy are often higher quality and more expensive, yet I generally spend less overall than I did in the states.

Health insurance   and healthcare : Since I’m currently based in Portugal, I’m relying on the local health system. While traveling more extensively, I previously paid $268 per month for GeoBlue insurance that covered me anywhere in the world except the US. Before that, I tried travel insurance through World Nomads, which I found wildly frustrating (despite marketing themselves to travelers, they require you to jump through a LOT of paperwork hoops that require access to printers, scanners, and copy machines) and IMG Global, who ignored my emails and took months upon months to even acknowledge my claims after I was hospitalized on Malta. I would not recommend either company.

For anyone who’s used a healthcare system abroad, it’ll come as no surprise that pretty much everywhere in cheaper than the US. Pre-Obamacare, I paid $150 for three months of birth control pills in the US. A three-month supply (and a doctor visit to get the prescription) in Germany cost me under $100. In Switzerland, that number dropped to around $50. And in Vietnam, the same pills (same ingredients, different brand name) were $10 and available over the counter.

In all, I try to keep monthly spending under $2,500 (not including my business spending). And even with this as my budget ceiling, I often come in under. A few months ago, I did the math on the 30+ real Europe travel budgets linked below (scroll down for links) and the monthly average came in at $1,637 .

For those who’d like a more detailed look at my monthly budgets around the world, here they all are categorized by price range (click on the links for in-depth details on the budgets):

My real monthly budgets

From cheapest to most expensive monthly budget. Click on each location for a more detailed breakdown.

Non-European locations are marked with an *. My favorite places appear in bold. Cost is in parentheses. And I’ve indicated the year the budget is from (obviously account for some inflation when using budgets from 10 years ago) and whether the budget was solo travel or traveling with a partner/friend (partnered travel typically means lower housing costs).

Under $1350 per month:

Konjic, Bosnia and Herzegovina / one month ($1157) 2017 / partnered

Labin, Croatia / one month ($1175) 2021 / solo

Tartu, Estonia / one month ($1213) 2020 / partnered

Tulum, Mexico / one month ($1232)* 2018 / partnered

Kotor, Montenegro / one month ($1253) 2019 / partnered

Mostar, Bosnia and Herzegovina / one month ($1296) 2017 / partnered

Sayulita, Mexico  /  one month  ($1301)* 2013 / solo

Riga, Latvia / one month ($1313) 2019 / partnered

Split, Croatia  /  one month ($1317 & $1241) 2019 & 2013 / partnered & solo

Zagreb, Croatia  /  one month ($1337) 2018 / solo

Playa del Carmen, Mexico  /  one month  ($1350)* 2013 / solo

Under $1,500 per month:

Taormina, Italy  /  one month  ($1364) 2017 / partnered

Porto, Portugal  /  one month ($1366) 2022 / solo, living full-time here

Kranjska Gora, Slovenia / one month  ($1385) 2017 / partnered

Toledo, Spain  /  one month  ($1388) 2015 / solo

Kobarid, Slovenia  /  one month  ($1422) 2015 / solo

Brasov, Romania  /  one month ($1433) 2018 / partnered

Dubrovnik, Croatia / one month  ($1443) 2017 / partnered

Tallinn, Estonia   /   one month ($1460) 2019 / partnered

Under $1,700 per month:

Interlaken, Switzerland  /  one month ($1558) 2019 / partnered

Ljubljana, Slovenia  /  two weeks  ($808) 2015 / solo

Bad Ischl, Austria  /  one month ($1618) 2020 / partnered

Rennes, France / one month  ($1648) 2018 / partnered

Nerja, Spain  /  one month  ($1689) 2015 / solo

Edinburgh, Scotland  /  one month  ($1697) 2012 / solo

Under $1,800 per month:

Ljubljana, Slovenia / second stay, one month  ($1735) 2017 / partnered

Grenoble, France / one month  ($1739) 2018 / partnered

Prague, Czechia  /  one month ($1752) 2018 / partnered

Under $2,000 per month:

Perugia, Italy  /  one month  ($1882) 2013 / solo

Flagstaff, Arizona  /  one month  ($1893)* 2016 / solo

Rome, Italy  /  one month  ($1911) 2017 / partnered

Chamonix, France  /  two weeks  ($962) 2015 / solo

Vancouver, Canada  /  one month  ($1988)* 2016 / partnered

Over $2,000 per month:

Lauterbrunnen, Switzerland  /  three monthly budgets compared  (varies) 2015 (and before) / solo

Amsterdam, Netherlands  /  two weeks  ($1008) 2015 / partnered

Biarritz, France  /  one month  ($2029) 2014 / solo

Innsbruck, Austria / one week ($511) 2018 / solo

Paris, France  /  one month  ($2118) 2013 / solo

Thun, Switzerland  /  one month ($2124) 2021 / partnered

New York, New York, USA / one month  ($2297)* 2018 / partnered

Zagreb, Croatia / one month splurge! ($2320) 2021 / solo

Opatija, Croatia / one month splurge! ($2897) 2021 / solo(ish)

Cycling across France  /  one month  ($3091) 2015 / solo

My budgets for shorter trips

Now, what about short trips? Weekends, overnights, week-long vacations? I’ve got some real budgets on those too, though they’re fewer and farther between for me. Here are they, from cheapest to most expensive per-day:

Vrbovsko, Croatia / 3 days ($87 / $29 per day) 2021 / solo

Plitvice Lakes National Park, Croatia / 3 days ($184 / $62 per day) 2021 / solo

Denver to LA road trip / 2 days ($207 / $103 per day)* 2012 / solo

Tbilisi, Georgia / 10 days ($1050 / $105 per day)* 2019 / partnered

Colmar, France / 5 days ($539 / $108 per day) 2019 / partnered

Paris, France / 5 days ($663 / $133 per day) 2019 / partnered

Emilia Romagna, Italy / 5 days ($776 / $155 per day) 2014 / solo

Business costs

It’s worth noting that you won’t see any business costs in the above budgets. My business expenses vary greatly based on what I’m working on, how much active marketing/sales I’m doing, and what kind of side projects (blogs, self-published books, etc.) I’m taking on. 

The few consistent things I pay for business-wise include:

Subscriptions for Microsoft Word, Adobe Photoshop, cloud storage, and a media subscription or two.

I now own a cell phone (turns out living full-time in Portugal requires one), but I also need a US number, so I use TextNow on my iPad for US calls/client calls. The basic number is free (because they serve up ads), but I pay a small fee in order to get a few extra benefits. 

Business insurance , which runs me about $50 per month, and a yearly fee (about $100) for my registered agent to handle my LLC renewal and receive any business mail for me.

Once a year or once every few years, I also have expenses for  web hosting and domain renewal  for the website. This usually costs me less than $100 per year.

Taxes:  Finally, a note on the most unavoidable of all expenses – taxes. In general (though not in every case), you are expected to pay taxes in the place you reside. If you live in the US, you pay in the US. If you live in Switzerland, you pay in Switzerland. 

If you’re from the US, you’ll always have to file US taxes even if you’re a resident abroad, but you may be eligible for the  FEIE , which is basically there to prevent you from paying double taxes. (Rather than get into it further here, I’ll suggest you book a consult with a US tax accountant. Many do free first consults and they will know so much more than I do about all the ins and outs of your particular situation.)

NOTE: If you’re paying in the states and self-employed, taxes are due quarterly, not yearly. This means when I’m paying in the States, I sit down every quarter and calculate the taxes I owe and send the government a check. At the end of the year, I hire a tax whiz (which generally runs me another $350 – $500) to help me make sure everything has been paid and filed properly.

Air travel expenses (& other big one-time costs)

There are a few things I don’t budget for monthly (or include in my monthly budget posts) because they are yearly or quarterly expenses and may vary greatly from month to month. One of these things is  plane tickets .

I’m not a traveler who flies a lot, preferring to explore one continent thoroughly at a time and take trains where possible both because it’s simply a more pleasant way to travel, because it’s more environmentally responsible, and because the older I get the worse my motion-sickness gets, so flying has stopped being even a little bit fun.

So, since I’m not buying them monthly or even bi-monthly, I usually don’t track plane ticket costs monthly and instead factor them into my budget on a quarterly or yearly basis. 

In 2021, I took four flights (one-way Switzerland to Croatia, one-way Croatia to Portugal, then round-trip Portugal – Croatia to collect my visa). In 2022, I only took one (one-way from Paris to Porto – I took trains in the other direction). 

Replacing technology (my laptop or tablet), big one-time medical expenses, and other large one-time purchases (like my folding bike) are also something I look at quarterly or annually rather than monthly.

Saving money while traveling full-time

Finally, for me, part of feeling comfortable starting my business and then, a year or so later, leaving to travel full-time was having a decent financial buffer in the bank. I was advised while starting my business to have at least six months worth of expenses in the bank just in case. Being a bit neurotic about money, I waited until I had 10 months and enough clients that I was already almost breaking even.

Similarly, when I started traveling, even though I would be working normally and hopefully earning normally, part of feeling comfortable was the knowledge that I had a buffer. If all my clients ditched me in month one, I could live for a year without income (assuming I lived relatively frugally).

Everyone operates differently on this. When my aunt started her business, she quickly went into debt. Yet she was wildly successful over time. I’ve also heard stories of those who moved to a cheap part of Asia to start their business, which meant the limited funds they had could last them much longer while they got things off the ground. I know one man who told me it’s going to take $150,000 to start his business. Another woman told me a success story that started with just 3,000 euros in the bank. An old roommate told me she’s been traveling and working for years with just a few hundred euros to her name.

My income is variable , but I also try to set aside a decent percentage each month for the future –both to tackle unexpected expenses or emergencies, to be prepared for my yearly tax bills, and, of course, to create more security for myself in case I ever cannot or no longer want to work.

Any expenses you tend to have during travel that I haven’t mentioned? Any questions about travel expenses and budgeting? Toss them in the comments.

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17 comments

This is so cool. Thank you for this.

I’m living in a tiny house on a farm right now, but after my kid graduates high school I – or perhaps both of us – have considered living like this for a while. I’m building up my author/editor business, and it certainly would be nice to get around. I get really restless staying in one spot too long.

Glad you enjoyed it! And good luck!

Idnloke to know more about working abroad

If you are looking for info on my freelance career, here’s the skinny: https://gigigriffis.com/how-i-make-money-while-traveling-the-world-full-time-behind-the-scenes-with-a-location-independent-writer/

If you are looking for info on jobs abroad, I’m sorry to say I don’t have much info on that.

I’m not brave enough to try this with my husband and two kids, but I loved reading about how you do it! Kudos!!

Thanks for sharing your experience! This gives us an idea of how to budget for travel in Europe.

I am really enjoying following your adventures. I am waiting for a Portuguese residency permit and will be dipping my toe in the nomadic water soon. One question I am grappling with – what do you do for health insurance when you are back in the US?

For short trips, I get a temporary travel insurance plan (something like World Nomads even though their paperwork hassles are epic). But I think many European health plans also cover emergencies outside Europe, so might be worth looking into whether your Portuguese insurance will cover you once you’re resident there (I know in Switzerland the insurance we looked at covers US travel).

Amazing post!! Thanks for the detailed breakdowns. So happy to have found your site – it’s SO helpful and informative for slow travelers.

Great post! Thanks for sharing these insights with everyone. I wonder if you might answer a tax question. If one were to travel 1-3 months in each country, does that mean you need to file taxes in each of those countries plus the US?? I get if one were in the same country for over 6mo then that country would probably be considered the country of residence for tax filing purposes but what about when hoping county to county, never staying in any one country longer than 3mo??

Thanks in advance for any insights on my tax question!

Most countries don’t consider you a tax resident until you’ve been there more than 180 days in a year. Most tax accountants will do a free consult if you would like a professional perspective on your specific situation, though!

i’m a new dog owner (about 9 months) and also planning for a 6-month travel sabbatical in about 1.5 years. i’m still debating whether i should take my yoshi with me (he’s a 13 lb chiwienie). I’ve never flown with him before, and I’m wondering if you have any tips and tricks to help ease him into the process? you’re an inspiration!

Thanks! If you haven’t already, I’d read the Luna the traveling pooch section of the blog. https://gigigriffis.com/category/luna/ . There’s tons of stuff in there. The short answer is lots of treats and comfort toys inside the carrier (with the carrier open) in your house to get him used to and feeling safe in the carrier.

Thank you a million times over!

Thanks, Gigi. I needed this. It gives me courage as a single 55 yo American dude. I need some challenge in my life…something to conquer…something that will keep me on my toes. I’ve always suffered from bouts of wanderlust and I’m just plain DONE with corporate health/academic full time work. I did a back-of-the-envelope calculation on my expenses and came out around 2,200/mo traveling mostly in European Union with time in Serbia, Montenegro, B/H, SE Asia, Georgia and Turkey to mitigate the Schengen rules. Any reason you spent so little time in the Balkans? Is it a solo-female traveler thing? Sadly Russia appears off the list. I have spent a fair amount of time there before.

I have savings and a professional license (planning to do consulting over zoom). I plan to work part time (10-12 hours/wk) while honing film photography, reading for pleasure, learning about local history, and making friends. My budget is a bit lighter for accommodations (I don’t mind living in an Airbnb room) and heavier on LOCAL travel. I want to hike and spend time shooting landscapes in the areas I choose. This is a giant question mark in my mind. How to get to these places without a vehicle? I’m a bit reticent about using a scooter and don’t want to spend a fortune on taxi. I’m thinking there might be local bus service that gets me close in many places? Any insights here would be appreciated.

Your style is very much how I view my own journey. Stay in one place 1-2 months to maximize accommodation expenditures, minimize European touristy museums (been there done that—going to 1-2 local gems is my thought), mostly eat at home, and take rail day trips once a month with a night-over. Kudos for avoiding the BIG European cities. That is exactly my plan. I don’ think you could force me to spend time in Paris for more than 3 days, mirroring my aversion to New York, Chicago and LA. Lol.

Once again, thank you for the inspiration! Hit me up on email if you like. If you have any tips on making local friends in the places you traveled, I’m all ears. Stay safe and pleasant travels!

Hey! Glad it’s helpful and good luck!

To your questions:

1) I actually spent quite a lot of time in Croatia (in fact, got a visa for a year after living in Estonia 1.5 years during the whole covid fiasco). The Balkans outside Croatia are a touch trickier because of infrastructure (which goes to your second question, I suppose). There’s less train/bus access, so they are trickier to get to and trickier to get around without a car (and I detest driving). Croatia definitely has better infrastructure than some other spots, though I did enjoy my jaunt into Bosnia and Montenegro.

The other reason is the dog. They tend to be the less dog-friendly options in Europe. I felt fine as a woman traveling solo, but the dog complicates places like Bosnia (which I did spend some time in, despite this) and Albania.

2) The Schengen countries (for the most part, with a few exceptions) have great public transit, so I relied on that. For hiking/wilderness areas, I find that there is transit but it sometimes runs less frequently, so I just had to plan well and sometimes find myself a base very close to the wilderness areas to stay for at least a few days (I did this, for instance, for Bohemian Switzerland in Czechia). Other places (Switzerland, France) often have trails very integrated into every location and/or transit to even the remotest spots.

The places that are a bit more tricky tend to be places on the edges of Europe (the center is very well connected). So I had to get more creative in places like Portugal, Spain, and Estonia, which have somewhat less extensive public transit and more car culture. (Even so, I have never rented a car in any of those places and have relied on everything from infrequent buses to my bicycle to taxis or rideshares.)

Great! Thank you for the insights! I poked around your blog and found solid information on making friends. Funny, having a meal at home with a handful of people is definitely my style. :) I enjoyed many of the images on your blog. Particularly one from Italy with the path going along that turquoise river. Sublime! Excellent information on the hiking trails in different countries and your tip on staying close to trail systems for a handful of days. Lastly, your travels helped me to discover the inclusion of Portugal to the digital nomad parade! That’s particularly exciting to me as my younger brother and fam are planning a permanent move to Portugal (getting tired of Seattle/US health care/foods). Looks like potentially a more lengthy process? What an amazing time to see the world and work from anywhere! New DM visas are also popping up in SE Asia. Cheers!

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• Department for Transport

National Travel Survey 2022: Trips by purpose, age and sex

Updated 14 December 2023

Applies to England

© Crown copyright 2023

This publication is licensed under the terms of the Open Government Licence v3.0 except where otherwise stated. To view this licence, visit nationalarchives.gov.uk/doc/open-government-licence/version/3 or write to the Information Policy Team, The National Archives, Kew, London TW9 4DU, or email: [email protected] .

Where we have identified any third party copyright information you will need to obtain permission from the copyright holders concerned.

This publication is available at https://www.gov.uk/government/statistics/national-travel-survey-2022/national-travel-survey-2022-trips-by-purpose-age-and-sex

About this release

The National Travel Survey ( NTS ) is a household survey of personal travel by residents of England travelling within Great Britain, from data collected via interviews and a seven-day travel diary, which enables analysis of patterns and trends. This release covers the main findings from these travel behaviours during 2022. The coronavirus (COVID-19) pandemic from March 2020, has had a substantial impact on travel trends since 2020 and has affected the operation of this survey. Further details on these impacts can be found in the Introduction and main findings section of this report.

Trends in trips and miles travelled by purpose

Chart 19: Trips per person per year by selected purposes: England, 2002 to 2022 (NTS0403)

During 2022, average trips for all purposes increased compared to the previous year apart from day trips and other including just walk trips which decreased further compared to their all-time high in 2020. However, day trips and other including just walk trips were the only trip purposes to remain higher than pre-pandemic levels with 34 trips per person and 92 trips per person respectively in 2022.

Day trips and other including just walk trips

Day trips include trips for pleasure (not otherwise classified as social or entertainment) within a single day and other including just walk trips include walking trips for pleasure or exercise along public highways, including taking the dog for a walk and jogging.

The most common trip purpose in 2022 was for shopping with 151 trips per person, a 14% increase compared to 2021, but a decrease of 16% compared to 2019. Commuting was the second most common trip purpose in 2022 with 119 trips per person, a 19% increase compared to 2021 (100 trips per person) but a 15% decrease compared to 2019 (140 trips per person). This could reflect the increase in working from home and hybrid working during this time. There was an increase in education trips in 2022 to 62 trips per person, a 24% increase compared to 2021 (50 trips per person), however, 8% less than in 2019 (68 trips per person).

Chart 20: Miles travelled per person per year by selected purposes: England, 2002 to 2022 (NTS0403)

There were similar trends observed in average miles travelled as number of trips by trip purpose in 2022. Distance travelled for all trip purposes increased in 2022 compared to 2021, apart from other including just walk trips which decreased from 111 miles per person in 2021 to 89 miles per person in 2022, however, this was the only trip purpose with a greater distance travelled than 2019 (58 miles per person).

The longest distance travelled was for commuting with 1,008 miles per person in 2022, an increase of 23% compared to 2021 (817 miles per person). This was, however, 21% less than levels in 2019 (1,276 miles per person). The second largest distance travelled on average was for the purpose of visiting friends at home, with 764 miles per person in 2022, an increase of 10% compared to 2021 (695 miles per person), but 12% less than in 2019 (872 miles per person). The third longest distance travelled was for shopping with 570 miles per person in 2022, this was an increase of 22% compared to 2021 (466 miles per person), but a 19% decrease compared to 2019 (700 miles per person).

Trends in trips by sex and age

Chart 21: Average trips made, and miles travelled per person per year by sex: England, 2022 (NTS0601)

In 2022, males made 5% fewer trips (837 trips per person) than females (886 trips per person) but travelled 20% further (5,874 miles per person by males, as opposed to 4,892 miles per person by females). This partly reflects differences in the type of trips made and the mode of travel used, with males making fewer trips but travelling longer distances by car (21% more miles on average), more trips and travelling further by cycling (256% more miles on average or over 3 times more) and shorter and fewer trips by walking (8% less miles on average) than females in 2022. Females made more shopping trips, which tend to be relatively short, whereas males made more commuting and business trips which tend to be longer.

Chart 22: Average trips by sex, age and selected main modes: England, 2002 to 2022 (NTS0601)

Overall walking trip trends by females have fluctuated over the years but have remained fairly stable for age groups between 0 and 29. For age groups 30 and over, walking trips by females have seen an increase in recent years. In 2022, females aged 30 to 39 made the most walking trips with 374 trips per person. Walking trip trends by males have remained stable over the years for all age groups. Males aged 0 to 16 made the most walking trips with 307 trips per person in 2022.

Both males and females aged 21 and over made most of their trips as a car driver in 2022. For the age groups between 17 and 49, trends in car driver trips by females have declined over the years, and for age groups 50 and over increased. Females aged 40 to 49 made the most car driver trips with 519 trips per person in 2022. Males aged 17 to 59 have seen a decrease in car driver trips over the years, and the trend has been stable for males aged 60 to 69 and slightly increased for males aged 70 and over. Males aged 50 to 59 made the most car driver trips in 2022 with 543 trips per person.

Car passenger trips made by females have declined over the years for all age groups apart from those aged 70 and over where trends have been relatively stable. Males have seen a decline in car passenger trips for age groups between 0 and 20, and all other age groups have seen trends that are relatively stable. Both males and females aged 0 to 16 made the most car passenger trips in 2022 with 381 and 391 trips per person respectively.

For all age groups, females have shown a decline in bus trip trends over the years, whereas trends by males have been more stable. For both males and females, those aged 17 to 20 have made the most bus trips in 2022 with 92 and 105 trips per person respectively.

Surface rail trip trends have seen a gradual increase over the years by all age groups 17 and over, which follow a similar pattern for both males and females. Females aged 21 to 29 made the most surface rail trips with 29 trips per person in 2022. Males aged 17 to 20 made the most rail trips with 33 trips per person in 2022.

Chart 23: Average trips by sex, age and selected purposes: England, 2002 to 2022 (NTS0611)

Shopping trip trends have declined over the years for all age groups by males and females up to the age of 69, after which trends have remained stable. Females aged 50 and over and males aged 60 and over made most of their trips for shopping in 2022. Both males and females aged 70 and over made the most shopping trips in 2022 with 251 and 273 trips per person respectively.

Males and females have shown a decline in commuting trips over the years for age groups between 17 and 59, after which the trend is relatively stable. Males made most of their trips for commuting between the age groups of 21 to 59 in 2022. Both males and females aged between 21 to 29 made the most commuting trips with 234 and 207 trips per person respectively in 2022.

Both males and females aged 0 to 16 made most of their trips for education purposes both with 269 trips per person in 2022. The highest escort education trips were made by those aged 30 to 49, more by females than males.

Visiting friends at private home trips have declined over the years for both males and females at all ages up to 59, and after this age have remained stable.

Both males and females aged 70 and over made the most trips for personal business which include trips for medical consultations or treatment, with 125 and 120 trips per person respectively in 2022.

Other including just walk trips have increased in recent years by all age groups for both males and females. Both males and females made the most other including just walk trips aged 60 to 69 with 151 and 160 trips per person respectively in 2022.

Trends in commuting trips

Chart 24: Proportion of commuting trips per person per year, by main mode and areas of residence: England, 2022 (ad hoc analyses NTSQ09030)

Outside London residents in England rely on cars for commuting, with 69% of commuting trips made by car by residents from urban areas excluding London, and this increases to 84% by residents in rural areas. Residents from London made the largest proportion of commuting trips by public transport with 46% in 2022, this reduces to 4% for residents living in rural areas. Around 19% of commuting trips are made by walking by residents from urban areas excluding London, and 15% by residents from London.

Background information

The 2022 National Travel Survey ( NTS ) is the latest in a series of household surveys of personal travel by residents of England travelling within Great Britain, from data collected via interviews and a seven-day travel diary. The NTS is part of a continuous survey that began in 1988, following ad-hoc surveys from the 1960s, which enables analysis of patterns and trends.

Some key uses of the data include describing patterns, for example how different groups of people travel, monitoring trends in travel, including sustainable modes; assessing the potential equality impacts of different groups; and contributing to the evaluation of policies.

We always welcome feedback to help ensure that the survey meets the needs of users, and any feedback provided will help inform the future design and development of the survey. If you have any feedback, please email National Travel Survey statistics .

National Statistics

These statistics are designated as National Statistics. National Statistics are produced to high professional standards as set out in the Code of Practice for Statistics. The Code of Practice for Statistics plays an essential role in ensuring that statistics published by government inspire the public confidence through demonstrating trustworthiness and providing high-quality statistics. These statistics were designated as National Statistics in July 2011. The continued designation was confirmed in September 2018.

Further information about these statistics is available, including:

• National Travel Survey statistics: data tables
• National Travel Survey statistics: notes and definitions
• National Travel Survey statistics: guidance and quality information
• National Travel Survey statistics: future developments

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• Charean Williams ,

• Mike Florio ,

Inside the latest Jalen Ramsey deal

• Mike Florio

After the Broncos rewarded cornerback Patrick Surtain II with a contract that has a new-money average of $24 million, Dolphins cornerback Jalen Ramsey one-upped Surtain, with $24.1 million per year in new money.

We’ve gotten the full details of the Ramsey extension.

Here they are, per a source with knowledge of the terms:

1. Signing bonus: $24.89 million, paid in March 2024.

2. 2024 base salary: $1.21 million, fully guaranteed.

3. 2025 option bonus: $18.98 million, fully guaranteed.

4. 2025 offseason roster bonus: $4 million, gully guaranteed.

5. 2025 offseason workout bonus: $100,000.

6. 2025 base salary: $1.255 million, fully guaranteed.

7. 2025 per-game roster bonus: $765,000 total.

8. 2026 option bonus: $8.135 million.

9. 2026 offseason roster bonus $2 million.

10. 2026 offseason workout bonus: $100,000.

11. 2026 base salary: $10 million.

12. 2026 per-game roster bonus: $765,000 total.

13. 2027 option bonus: $8.135 million.

14. 2027 offseason roster bonus $2 million.

15. 2027 offseason workout bonus: $100,000.

16. 2027 base salary: $10 million.

17. 2027 per-game roster bonus: $765,000 total.

18. 2028 option bonus: $8.135 million.

19. 2028 offseason roster bonus $2 million.

20. 2028 offseason workout bonus: $100,000.

21. 2028 base salary: $21.135 million.

22. 2028 per-game roster bonus: $765,000 total.

Of the 2026 compensation package, $5 million becomes fully guaranteed that year.

The contract has three new years and two prior years (at $45.6 million), for a five-year total of $117.9 million.

The full guarantee at signing is $50.335 million, but this includes the signing bonus Ramsey received when the bulk of his 2024 base salary was converted to a signing bonus.

The only new guarantee is $24.35 million, and then Dolphins could move on after two years and $51.2 million.

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News & Insights

Mastercard Stock (NYSE:MA) Sees Sustained Growth that Fuels Share Price Gains

September 09, 2024 — 08:49 am EDT

Written by Nikolaos Sismanis for TipRanks  ->

Mastercard (MA) delivered a robust performance in Q2 of 2024, reflecting its sustained growth trajectory in the payments processing industry. Specifically, the payments processing giant posted notable revenue growth across its core and emerging markets, bolstered by solid consumer spending and expansions into value-added services. In the meantime, due to Mastercard’s scalable business model, its margins continue to rise, which, along with continued share buybacks, led to another period of explosive earnings per share (EPS) growth. With Mastercard’s top and bottom line growth set to persist, I am bullish on the stock.

What Has Driven Mastercard’s Revenue Growth Lately?

Mastercard’s revenue growth continues to thrive, driven by resilient consumer spending. This sustained trend strengthens my confidence in the stock, particularly as consumer spending remains robust despite mixed macroeconomic conditions.

In particular, Mastercard’s net revenues hit $7.0 billion in Q2, marking an 11% growth compared to the second quarter of last year and a new quarterly record. Michael Miebach, Mastercard’s CEO, attributed this success to Mastercard’s dual focus on expanding its core payments network and increasing demand for value-added services.

To clarify, Mastercard’s payment network alone saw a 7% rise in revenue, powered by a 9% rise in gross dollar volume (GDV), reaching $2.4 trillion, while cross-border volumes surged by 17%. The latter reflects the ongoing global travel and tourism recovery, which has remained vibrant for numerous quarters even after the initial post-pandemic revenge-travel boom.

The other critical element supporting Mastercard’s revenue growth was its value-added services, which rose by an impressive 19% on a currency-neutral basis. This segment includes consulting, data analytics, fraud prevention, and identity authentication services, which are becoming increasingly important to businesses in today’s digital economy. The high demand for these services, along with Mastercard’s strong payment systems, created a ‘flywheel effect,’ where each success helped drive even more growth for the company.

MA Earnings Surge due to Continued Margin Expansion

In Mastercard’s Q2 report, its earnings actually outpaced revenue growth, which is pretty impressive and further bolstered my bullish stance on the stock. A big part of that comes down to Mastercard’s enduring margin expansion, largely thanks to its frictionless, high-margin business model.

What’s interesting about Mastercard is how its royalty-like structure works. Essentially, it allows it to handle more payments and grow revenues without taking on much in the way of extra costs. This dynamic has been a key driver behind their ever-expanding margins—something we’ve seen consistently since their IPO.

To give a clearer picture, Mastercard’s adjusted operating margin climbed to 59.4%, which, when blended with the underlying rise in revenues, resulted in adjusted EPS reaching $3.59. This marked a tremendous growth of 24% compared to last year and, similarly to revenues, a new quarterly record.

It’s quite shocking to witness Mastercard sustaining such vigorous growth, even after decades of industry dominance. Despite benefiting from significant trends lately—such as the pandemic-driven surge in e-commerce spending and the post-pandemic spike in “revenge travel,” both of which significantly boosted Mastercard’s transaction volumes, revenues, and earnings—the company’s growth figures continue to defy gravity with their upward trajectory.

Outlook and Valuation Mix Support Upside Potential

Mastercard’s outlook for the remainder of 2024 remains optimistic, and when coupled with what appears to be a fair valuation, it indicates potential for further upside in the stock. To go deeper into Mastercard’s growth outlook, it’s not just the momentum driven by solid consumer spending that fuels the company’s growth. Mastercard is also making significant progress in expanding its footprint in high-growth markets, a key factor that is expected to continue driving its long-term growth.

Namely, Mr. Miebach emphasized his team’s dedication to increasing the company’s presence in regions where cash remains the main form of payment, such as Africa and Latin America. For instance, Mastercard has been aggressively expanding its acceptance footprint in Africa, tripling the number of acceptance locations over the last five years and forging new partnerships with major banks in Ethiopia and Kenya.

Considering these factors and Mastercard’s strong performance in the first half of the year, Wall Street anticipates an 18.6% increase in the company’s adjusted EPS for Fiscal 2024 to hit a record $14.32. This implies Mastercard shares are now trading at a P/E ratio of 33.3.

While this may seem like a rich multiple, it’s essential to factor in Mastercard’s extraordinary ability to consistently post double-digit revenue growth, its ongoing margin expansion, and its dominant position in an industry that benefits from a natural tailwind (i.e., the global shift towards a cashless society). In light of this, I believe Mastercard’s valuation is fair and can support further upside from its current levels.

Is MA Stock a Buy, According to Analysts?

Wall Street’s view on the stock also appears quite bullish, with Mastercard boasting a “Strong Buy” consensus rating based on 22 Buys and four Hold recommendations assigned in the past three months. At $526.95, the  average MA stock price target implies 10.68% upside potential.

If you’re wondering which analyst you should follow if you want to buy and sell MA stock, the most profitable analyst covering the stock (on a one-year timeframe) is  Sanjay Sakhrani  from KBW, with an average return of 28.60% per rating and a 95% success rate.

See more MA analyst ratings

Key Takeaway

To sum up, Mastercard’s most recent results again highlighted its sustained growth across core markets, driven by solid consumer spending and rising demand for value-added services. The company’s scalable, high-margin business model and continued global expansion are poised to keep fueling its top-line and bottom-line growth—a trend that seems poised to endure moving forward.

Simultaneously, with the stock’s valuation matching Wall Street’s optimistic earnings growth expectations, I believe that Mastercard remains well-positioned for further upside, bolstering my bullish view on its investment case.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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