Bank of America Survey Finds 40% of Sub-$50K Households Skipping Travel
Bank of America survey shows 40% of households earning under $50,000 plan no travel this summer, driving year-over-year declines in travel-related card spending while middle- and high-income consumers boost bookings. Average US travel costs rose 9% annually, with airfare up 20.7% and lodging up 4.3%.
1. Survey Reveals Divergent Travel Plans
The Bank of America survey indicates a K-shaped travel pattern, with nearly 40% of households earning under $50,000 annually planning no trips this summer, while middle- and high-income consumers report stronger travel spending compared with last year.
2. Travel Cost Inflation Details
Average US travel costs have climbed 9% year-over-year through April, driven by a 20.7% surge in airfares, a 4.3% increase in lodging and a 3.6% rise in dining expenses, placing additional strain on consumer budgets.
3. Impact on Bank of America Card Business
Declining travel-related card spending among lower-income clients may pressure Bank of America’s card revenue growth, even as robust spending by wealthier segments supports overall transaction volumes and fee income this summer.