Skip to main content
Scripbox Logo

Seven ways in which the COVID-19 crisis could impact your Holiday Budget

Leisure Travel - a big short term financial goal for many of us has changed. Let's see in what ways.

Its summertime and by now you probably should have been skiing in the Alps or trudging the Himalayas.  However, the outbreak of Covid-19 pandemic has upset vacation plans with most staying indoors. 
Going ahead, your holiday plans and its budgeting will get impacted by the COVID crisis in the following ways: 

1. Homebound

The virus has spread to most tourist spots of the European, Asian and the American continent. ‘Safer’ nations, in turn, have imposed travel restrictions for people travelling from virus-infected countries (including that of India). You might also be asked to be quarantined on arrival (thereby limiting your actual vacationing time).

Moreover, travellers are slashing their discretionary spends, including those on leisure activities, with businesses and jobs getting financially impacted by the pandemic. 

Travellers are therefore more likely to remain home abound till the crisis abates. 

2. Cost of personal space

Travellers will place a lot of emphasis on hygiene and safety standards while choosing hotel or flight operators. For instance, hotels with sanitized rooms and least touch-points will be preferred over just the cheap ones. Home-stays like Airbnb might be preferred overcrowded hotels. 

Flight operators, in turn, might install thermal cameras to screen health status of passengers or hire people to frequently disinfect trays and other high-touch points in the plane. Some flight seats might be removed to ensure social distancing. All this could have an impact on its cost of operations and in turn the flight rates.

3. Destination choices

Destinations in Covid-free states where the cases are minuscule might become popular. ‘Staycationing’ or day trips to nearby destinations (and avoiding stays at hotels) might also become the norm with most states likely to put restrictions on travel beyond the state borders. All this could have implications for your travel budget depending on the demand-supply equation. 

4. Changing preferences

It’s more likely that you would self-drive your car to the tourist destination rather than use public transport. Also, you may spend fewer days holidaying than before. That could be lighter on your pocket. It’s likely that the number of trips is reduced (or days spent per trip increased) to keep public exposure to the minimum. 

5. Better bargains

With the tourism industry being hit the most by the COVID pandemic, they are likely to offer lucrative deals and flexibility in choice-making for its customers. For instance, flight bookings might come with the flexibility to cancel or modify anytime without any charge. Complimentary airport transfers or free food might be offered to lure hotel customers. Even luxury hotels are likely to drop room rents to lure regular travellers and stay afloat. 
While cashing on these offers, however, ensure you don’t risk your health.

With your summer vacationing plans going kaput, your holiday fund balance is likely to remain sizeable. Use the opportunity to bump it up further. Whenever things get normal, you could use it to do your bookings for that dream luxury cruise or extended European tour. 

6. Big balance

With your summer vacationing plans going kaput, your holiday fund balance is likely to remain sizeable. Use the opportunity to bump it up further. Whenever things get normal, you could use it to do your bookings for that dream luxury cruise or extended European tour. 

7. Changing policies

Many travel-related companies have changed their booking policies recently. While flight bookings done during the lockdown period are to be compulsorily refunded as per the Government rules, some flight operators are giving it as a credit note and not as a money refund. These credit notes need to be utilized by the passenger within a year of its issuance. 

Moreover, cancellation policies differ depending on whether you booked the flight directly with the flight operator or through its agent. Online flight booking portals are known to levy separate penalty charges for any cancellations. So, read the new fine print carefully.

Takeaway

Holiday trips are likely to get shorter and home bound. A lot of emphasis will be placed on hygiene and safety standards, while choosing hotel or flight operators. By its minimizing its impact on your finances and budgeting, you can wade through the crisis. 

Our Most Popular Categories

Achieve all your financial goals with Scripbox. Start Now