Americans adjusting holiday spending, travel plans in response to pandemic
Household income determines behavior during a pandemic.
Americans are changing their holiday spending and travel plans as COVID-19 cases continue to spike. Credible, a multi-lender marketplace, recently surveyed more than 1,000 adults about the impact of the ongoing pandemic. The responses often varied by household income.
Holiday travel. Two-thirds of respondents plan to stay home for the holidays, and an even higher percentage (70 percent) of families with household incomes of $75,000 or more said that’s the case. Overall, slightly more people plan to travel over the Christmas and Hanukkah holidays (23 percent) than thought they would at Thanksgiving (22 percent).
Residents of the Pacific region — California, Oregon, Washington, Alaska and Hawaii — were the most likely to say they planned to travel over the holidays. Close to four in 10 West Coast residents said they planned to travel over Thanksgiving, Christmas or both.
That’s in contrast to responses from the northern Plains states, where only about one in five reported that they had travel plans.
Christmas and Hanukkah gatherings. About one in four of those surveyed said they planned to quarantine during the Christmas and Hanukkah holidays and not see extended family and friends.
Holiday spending. The majority (56 percent) said they will spend less than usual on gifts over the Christmas and Hanukkah holidays. The impact of the pandemic was more pronounced on those with household income below $75,000, with nearly two-thirds saying they planned to cut back. In contrast, less than half of families earning $75,000 or more said they will be cutting back on gifts.
People from wealthier families were more than three times as likely to be planning a gift-buying spree. Among those with household incomes of $75,000 or more, 16 percent said they plan to spend $1,000 or more on holiday gifts, compared to less than 5 percent of people earning less than $75,000.
Cash vs. credit. Most Americans would rather not rack up new debt buying holiday gifts, with 54 percent reporting they plan to pay cash for their purchases. If they do borrow, credit cards or store credit are the preferred methods (44 percent).
Wealthier respondents are more willing to finance a gift-buying spree, with 50 percent saying they’re planning to use their credit cards or accept offers of store credit.
Among families earning less than $75,000 a year, only 40 percent said they planned to pay for gifts with a credit card, while 58 percent said they would pay cash.
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