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Iowa Credit Union League predicts Iowans’ vacations to resemble years past

DES MOINES, IA (June 25, 2015) — The school year is already a distant memory and now many Iowans are ready for a summer of déjà vu.

According to a recent survey conducted by the Iowa Credit Union League (ICUL) of more than 1,100 credit union members and consumers throughout the state, 40 percent of Iowans are planning on taking the same amount of time off, traveling the same distances and using the same types of transportation for their summer vacation as years past. Ten percent of respondents plan on traveling a greater distance than years past and nine percent plan on taking more vacation time.

The U.S. Travel Association estimates that many of the Iowans who have summer vacation plans are likely to travel domestically. This summer, 1.7 million Americans will travel domestically for leisure in 2015, a 1.6 percent increase over 2014. That trend is expected to continue through 2017.

But not everyone will be taking a vacation this summer. Thirty percent of the respondents do not have any vacation plans.

According to Oxford Economics, an economic analysis firm that conducted a study called Project Time Off, Americans are throwing away $52.4 billion each year by opting out of vacation time. Accumulated employee vacation time is costing American companies $224 billion in liabilities. The study also revealed that Americans are taking less vacation than they did a decade ago. In 2013, the average worker took 16 vacation days, down from 20.9 in 2000.

Often finances contribute to the decision to opt out of taking vacation time. If that’s an issue, Andrea Dose, Member Outreach Coordinator at ICUL, suggests seeking assistance from a credit union.

“Many times members borrow for vacation and I encourage them to keep the term to 12 months,” Dose said. “Some members choose to finance vacations for longer than 12 months and a year goes by and they still have the vacation loan – and now they want to finance another vacation. Setting the term to a year ensures the loan is paid off prior to the next vacation.”

Tips for planning a vacation:

Research non-traditional accommodations. A lodge at a state park or a weekly house rental can be more economical than a traditional hotel stay.
Put a little money aside all year. Determine where it is you want to go and start setting money aside 6-12 months in advance. Consider opening a savings account specifically for vacation funds.
Consult your credit union. Many credit unions offer vacation loans with affordable interest rates. Keep the term to 12 months to ensure it is paid off prior to your next vacation.
To learn more about credit unions or to find one to join, visit: http://www.iowacreditunions.com

About the Iowa Credit Union League

The Iowa Credit Union League is the trade association that represents the interests of Iowa credit unions and their more than one million members. Credit unions are not-for-profit, financial cooperatives owned and operated by their members. Iowans use their credit union membership to receive higher interest rates on savings and lower interest rates on loans. For more information on ICUL and Iowa credit unions, visit www.IowaCreditUnions.com. Follow ICUL on Twitter at www.twitter.com/icul or on Facebook at www.facebook.com/iowacreditunions.To learn more about credit unions, visit www.ASmarterChoice.org