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You're in desperate need of a vacation. You're hoping that you can plan a quick trip abroad this summer, where you can escape the humdrum of the usual workweek and make some incredible memories. Before you get too excited about your travel plans, you should know that this summer's vacation could put a bigger dent in your budget than expected. You'll have to take the following travel expenses into consideration.
Higher Airfare Costs
Have you tried to book a flight recently? Your stomach might've dropped when you glanced at the ticket prices. They're much higher than they were even a few years ago. According to the Consumer Price Index, airline fares have surged in price in the past year.
So, if you're planning a trip this summer, prepare to spend more than usual while booking tickets. Research on summer flight prices shows that you can expect to spend an average of $1,167 for a ticket to Europe and an average of $1,817 for a ticket to Asia.
Higher Hotel Costs
It's not just the flights that are expensive. You should expect to find higher hotel room rates than you paid before the pandemic. For instance, in December 2022, the average hotel room in London, England, was $258 per night. And that average was in the winter! Summer months are peak travel times, so you can expect the room rates to rise with the demand for international vacations.
Potential Flight Disruptions
You don't want to book an international trip without signing up for a travel insurance plan. Why? Well, the State Department received an unprecedented number of passport applications, leading to predictions that this summer will be incredibly busy for airports.
The busier airports are, the more likely travelers are going to encounter expensive mishaps, like lost luggage, overbooked flights and delayed flights. So, if you're planning on traveling this summer, you should sign up for a travel insurance plan to protect yourself from the financial consequences of these mishaps. You can find insurance plans that offer coverage for the following circumstances:
You can apply for a private travel insurance plan, or you can check whether one of your credit cards offers travel insurance. Credit cards that offer travel insurance for users typically require that the majority of vacation purchases (for example, plane tickets) are made with the related credit cards in order to receive coverage.
What other safety net should you have?
It's not enough to have travel insurance. Remember, your travel insurance claim will have to be processed before you receive funds. You might have to wait for some time for your claim to go through. It could take weeks to complete. So, you will want to have a way to cover the costs quickly. The insurance settlement should help you recoup your losses later on.
Set up an emergency fund to help you pay for urgent, unanticipated expenses that are outside of your vacation budget. Simply withdraw the necessary savings from your fund and use them to pay for the expense right away.
If you don't have enough in your emergency fund, you could use your credit card as a backup plan. Or, if you don't want to use your credit card, you could look into personal lines of credit through CreditFresh to see whether you're eligible to apply for one. As long as you meet all of the requirements, you can fill out and submit your application for the line of credit through the website. Soon enough, you'll be informed of your approval status. The credit tool could help you cover a small, urgent expense.
Lines of credit should only be used for emergency expenses. Do not submit an application for this borrowing solution when you want to cover non-emergency expenses, like shopping for souvenirs during your vacation.
Can your budget handle these travel expenses this summer? If it can, then you can feel safe to pack your bags and go on a well-deserved trip.
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