Inflation reportedly causing 80% of summer travelers to alter plans, travel methods

Yahoo Finance Live takes a look at shares of hotel operator Hilton as inflation is causing travelers to reconsider their summer travel plans.

Video transcript

SEANA SMITH: Hilton is the latest company reporting strong demand for travel. The hotel chain's revenue per available room was up 30% in Q1 from a year ago, a sign that consumers are willing to spend and travel despite some of those higher costs. But we did get a new bank rate survey revealing that inflation is certainly having an impact on travel.

80% of those who do plan to take a trip are changing their plans because of higher prices. Now, here's what they're doing. Almost a third, about 29%, are picking some of those less expensive trips. 28% are engaging in cheaper activities while they are away.

And 26%, about a quarter here, are taking shorter trips or fewer trips and choosing to drive instead of fly. So certainly, Dave, we've been talking about this pentup demand for travel. People are very eager to get out and explore, what, with the fact that airfare remains so high, people are spending more in almost every aspect of their daily lives-- they're being forced to make some changes due to their budget. No surprise that people are opting not to fly and more are hitting the road.

DAVE BRIGGS: Yeah. just my own personal story-- was going to travel to Greece this summer, was 100% sure. Checked out the hotel prices, that knocked down 50% of my momentum, then checked the flight prices, and that took out the other 50%. It was three, four times what I had expected.

And I have flown overseas and have stayed overseas. I had never seen prices that even compared to this. Still surprising, though, to see 63% of US adults likely to take a summer vacation this year. That's up from 61% from last year. So, yes, they are changing their vacation plans.

But still, 63% of adults planning to travel this summer is a huge number. Also, another number for you-- among the 37% of US adults unlikely to take a vacation this year, the majority, 58%, say it's because they cannot afford it. Has it impacted your summer plans?

SEANA SMITH: It has impacted our summer plans. Because when you talk about buying plane tickets, a lot of times for our family, that means four plane tickets. So you're not just talking about yourself, right? Now, you're talking about paying for your kids.

And that has been a little bit of a rude awakening, I must tell you. Because my kids are young. I didn't exactly take into account how much more expensive it is to travel with a family of four when you're used to just traveling with your significant other.

But I think it's also going to impact-- I don't think that this is the end of the road potentially for changes, because right now, we're looking at a national average of gasoline prices of $3.65 a gallon. If we do see that number rise, we might see people changing their plans even more or opting to stick at home because they don't want to pay what they do-- what they will potentially have to pay in order to fill up a tank of gas.