— This is the script of CNBC's financial news report for China's CCTV on December 6, 2022.
According to a survey by Credit Karma, a personal financial services company, 57 percent of Americans do not plan to travel home for the holidays this year-end. High inflation is causing the cost of transportation to increase, preventing Americans from returning home.
Among Americans who chose not to travel home for the holidays, 25 percent said the reason for their decision was high gasoline prices, 20 percent said they were struggling to make ends meet due to inflation, and 17 percent said the airfare was too expensive.
During the Thanksgiving holiday just past, we have already seen an increase in airfares. Jude Bricker, CEO of Sun Country Airlines, said in an interview with CNBC that their airfares rose by about 40% this year compared to before Covid-19, which is 2019. Supply chain issues and high demand contributed to the increase.
Jude Bricker
CEO of Sun Country Airlines
"We're up about 40% versus 19 levels. Okay, it's a lot more expensive to fly, keep in mind it feels a lot more expensive. but the main issue we're having, like supply chains everywhere, as we just have fewer seats as an industry in the markets. It is a little bit of an exception."
Sun Country Airlines expects to see a 9 percent increase in passenger volume during Thanksgiving week, which is from Nov. 20 to Nov. 26 this year. Sunday would be their busiest day with nearly 18,000 people.
Christmas travel is generally more expensive than Thanksgiving travel. Hopper, an online travel booking platform, estimates that domestic flights cost on average $350 during Thanksgiving, and $463 during Christmas. The cost of air travel during the Christmas season increased by 39 percent compared to last year.
Another Hopper survey also showed that 46 percent of consumers believe that rising airfares have become a concern when planning their holiday travel.
For Gen Z, ages 18 to 25, traveling home for the holidays requires financial assistance from their parents, according to a Credit Karma survey. For Zoomers traveling home for the holidays, 41% expect their parents or family members to cover their travel accommodations. 10% of Gen Z respondents who do not plan to travel home for the holidays say that their parents cannot afford to pay for their transportation this year.
The high cost of living is affecting more than just traveling home. Many Americans are adjusting their travel plans for the year-end in response to the high prices.
According to a survey by the U.S. financial services website, Bankrate.com, 79 percent of Americans who have made travel arrangements for the end of the year said they would adjust their travel plans, which included reducing the number of days they travel, selecting cheaper accommodations, traveling shorter distances, etc.