So, my friend just came back from a two-week luxury trip to Italy—Rome, Tuscany, the Amalfi Coast, the whole dream. She stayed in boutique hotels, ate pasta with names I can’t pronounce, and lived like she had a billionaire’s travel budget.
And guess how she paid for it?
Credit. All of it.
Now, I’m not judging (okay, maybe a little), but here’s the weird part: she’s not rich. In fact, she’s still paying off student loans from a degree she doesn’t even use.
And she’s not alone.
People are traveling more than ever, even as rent, gas, and basic survival costs keep rising. Flights are packed. Hotels are booked. Even budget travel isn’t really budget anymore.
So, what’s happening? Have people figured out some secret financial cheat code? Or are we all just leaning into the “I’ll-worry-about-it-later” economy?
Let’s get into it.
Travel Spending Is Up—Like, Way Up
A few years ago, the travel industry was basically on life support. Planes were empty. Hotels were desperate. Cruise ships? Yeah, no one was voluntarily signing up for that.
Now? Completely different story.
- Travel spending is 15% higher than pre-pandemic levels. (U.S. Travel Association)
- Luxury resorts? Fully booked. And not just by the super-rich. Somehow, middle-class travelers are making it happen.
- Flights are overpriced—but people keep paying. And not even flinching.
It’s like the world collectively said, “YOLO, I’m going to Greece.”
But, uh… with what money?
Vacations Cost More Than Ever—And Nobody Seems to Care
Everything about travel is stupid expensive right now.
✈️ Flights? Up 20-30% compared to pre-pandemic.
🏨 Hotels? Even mid-tier chains are pricing themselves like they’re the Ritz.
🏠 Airbnb? Sometimes more expensive than hotels now—plus cleaning fees that make you question everything.
I checked Airbnb for a weekend trip, and after cleaning fees, service fees, and the mysterious “because-we-said-so” fee, I realized I’d be better off just booking a hotel.
And yet—people are still spending.
How Are People Affording This? (Spoiler: They’re Not)
Once upon a time, if you couldn’t afford a trip, you just… didn’t go.
Now? Welcome to Buy Now, Pay Later (BNPL) Travel.
Yep, you can finance your entire vacation—flights, hotels, excursions—just like a new iPhone.
📌 Popular BNPL travel services:
✔ Uplift – Let’s you split your vacation into monthly payments.
✔ Affirm – “Want to go to Europe? Pay us back… eventually.”
✔ Afterpay & Klarna – Because why not go into debt for a vacation you already took?
Or, you know, people are just throwing it all on credit cards and pretending Future Them will figure it out. (Future Them is stressed, by the way.)
The ‘I Deserve This’ Economy
Here’s where things get interesting.
At this point, travel isn’t just about going somewhere. It’s about making up for lost time.
- People feel like they missed out for years.
- They’re tired of waiting for the “right” time to go.
- Social media makes every trip look like a life-changing experience—so skipping one feels like a personal failure.
It’s the whole “experiences over things” mindset—except those experiences cost money.
And honestly? I get it.
If I see one more TikTok of someone drinking wine in Santorini while I’m sitting in traffic, I might just book a flight out of spite.
How to Travel (Without Ruining Your Finances)
So, you still wanna take a trip but also not financially wreck yourself? Fair.
1. Stop Going Where Everyone Else Is Going
Europe, Hawaii, and Japan? Overpriced.
Vietnam, Colombia, and Portugal? Still affordable and amazing. (Nomadic Matt’s Budget Guide)
2. Credit Cards Are Not Magic Free Money
- Use travel rewards credit cards—they can literally cover flights and hotels.
- Actually pay them off—or you’ll be making monthly payments on a vacation you took two years ago.
3. Travel Off-Season Like a Pro
- Flights mid-week = cheaper.
- Avoid peak summer and holiday pricing.
- Consider destinations that aren’t all over Instagram.
4. Don’t Assume Airbnb Is the Best Deal
- Hotels are sometimes cheaper (and no surprise fees).
- Hostels, house-sitting, boutique stays = underrated.
- Airbnb cleaning fees are getting out of hand.
Final Thoughts: Are We Traveling Smarter or Just Spending More?
People aren’t just traveling more—they’re spending more, financing more, and making riskier financial choices just to make it happen.
For some, it’s worth it.
For others, it’s just another credit card bill waiting to happen.
The real flex? Taking the trip AND having money left when you get back.
What’s Your Take?
Are people being smart about this, or are we setting ourselves up for a financial mess?
Drop your thoughts—I need to know.