How to Use Credit Cards Effectively for Summer Travel

If you’re planning to spend money on travel as the days get longer, sunnier and warmer, be careful: it could leave you with high-interest debt that you’ll still have to repay throughout of autumn and winter.

Nearly half (45%) of Americans plan to take a summer trip that requires a flight or hotel stay, and they expect to spend an average of $3,594, according to ‘s Travel Report. Summer 2024 from NerdWallet.

The majority of travelers, 83%, will pay part of their vacation expenses with a credit card. But 20% won’t pay off the balance in full on the first billing statement, NerdWallet found. The report surveyed 2,092 U.S. adults from January 30 to February 1, 2024.

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“Travel spending is not slowing down,” said Hayley Berg, senior economist at Hopper.

The summer wedding season can contribute to travel debt. About 31% of recent wedding guests have incurred debt, according to a new study from LendingTree. Among those who paid on credit, travel (32%) and lodging (27%) racked up the highest bills, LendingTree found.

Three-quarters of Hopper users said they plan to spend the same or more on their trips this summer, according to Hopper’s 2024 Travel Outlook.

“But they’re trying to get more bang for their buck,” she said, by taking more trips with a bigger or the same size budget.

About 86.6% of Hopper users plan to travel this summer, but 72.5% have not yet booked their trip, according to the outlook.

“It never surprises me how many people wait until the last minute to book their vacation,” Berg said.

Fortunately for travelers, airfares are down 5.8% from a year ago, according to the Consumer Price Index.

Domestic airfares for June, July and August average about $305, down 6 percent from the same period last year, according to Hopper. Prices are expected to peak at $315 per ticket in late May and early June, according to Hopper data.

“It’s a marked improvement over the price increases we see every year,” Berg said.

But other costs associated with air travel have increased. For example, many major airlines like United Airlines, American Airlines, and JetBlue Airways have increased their checked baggage fees this year.

“Most airlines have increased their fees by five dollars,” said Sally French, travel rewards expert at NerdWallet. “That usually means that about $35 now becomes $40…That’s an extra $40 for a round trip.”

Some cardholders may believe it’s good to carry a balance while they’re paying for vacations or other large purchases because it helps show they’re using the card, French said.

This is a common misconception. In 2022, about 46% of Americans thought leaving a balance on their credit card was better for their score than paying it off in full, according to NerdWallet data.

“There are a lot of myths about credit cards,” French said. “Leaving a balance on your credit card is not necessarily good for your credit score.”

The reality is that carrying a balance can increase your credit utilization rate, which can potentially hurt your score. Plus, you’re increasing the expense of that purchase, with average credit card interest rates topping 20%.

Cardholders already owe $1.12 trillion in credit card debt, with an average balance of $6,218 per consumer, according to a new report from the Federal Reserve Bank of New York.

Smart planning and budgeting can help you reduce travel costs and more easily avoid carrying a balance. Here are three strategies to try:

1. Book your summer travel plans soon: The earlier you book your travel plans, the lower the initial cost will tend to be. U.S. domestic flight prices tend to increase the weekend before July 4 week, Memorial Day weekend and Labor Day weekend, according to Hopper data.

“If you haven’t booked, book now,” Berg said.

The “sweet spot” for international travel is three to five months in advance; If you are planning to take a trip in August, now is the time. For domestic flights, about two to three months in advance is best for summer travel. You may still have time to book trips in late summer and early fall, she said.

2. Be as flexible as possible: If you can, avoid leaving on Thursday or Friday evening; try to book flights on Tuesday or Wednesday. Flying midweek can save about $50 per ticket on domestic airfare and “a lot more” on international flights, Berg said.

If you’re flexible on your travel dates, booking a vacation for September and even early October can save you 30% on hotel and airfare prices. And “the weather is generally just as good, with fewer people in many destinations,” Berg said. “An easy way to save money and have a little less of a tourist experience.”

2. Save on food costs: When budgeting for a vacation, travelers focus on hotel and flight costs because they typically book and pay for them in advance, French said. Restaurant prices often come as a surprise when travelers look at their spending and “are shocked by how high they are,” she said.

Look for options to save on food costs by opting for counter service options rather than table service. Or go to a local farmers market or supermarket and cook something yourself for a meal or two.

“Restaurant dining is a big part of many people’s travels, so you may not want to skip them completely,” French said.

3. Take advantage of your credit card rewards: Some credit cards offer perks and rewards on dining and travel expenses, such as checked baggage fees. They could also extend these benefits to other people you’re traveling with, French said.

But it’s not a last-minute decision: it takes time to apply and then receive your new card. “A lot of people get it wrong because you have to apply for that credit card in advance,” she said.