Getting away on vacation allows for recharging both physically and mentally, yet many working Americans aren’t able to take an out-of-town vacation, primarily due to the cost involved, according to a recent Harris Poll on behalf of Purchasing Power.
Rested employees are more productive employees, so employers who provide benefits that offer affordable ways to purchase vacations, such as the vacation packages our employee purchase program offers, will improve employee morale and their company’s bottom line at the same time.
Conducted in March 2016, the survey showed that 26 percent of full-time employees didn’t go out of town on their vacation last year. Of those who did not go out-of-town on vacation last year, 68 percent reported that the reason was cost-related. Cost was not just a factor for those with lower salaries, but was a consideration for employees in salary ranges under $100,000:
- 45 percent of those who earn less than $50,000 annually reported that cost was the primary reason they did not go away on vacation;
- 25 percent of workers whose salary is in the $50,001 to $74,999 range said they did not take an out-of-town vacation last year due to cost; and
- 16 percent of employees in the $75,000 to $99,999 salary range said cost was the reason they did not leave town for vacation.
Giving employees the opportunity to payroll deduct budget-friendly payments provides an affordable way for employees to take an out of town vacation and offers an alternative to high-interest credit cards. For example, a $2,000 vacation paid for with a credit card at an 18 percent interest rate will take almost ten years to pay off if the buyer only chooses to make the minimum payment of 4 percent of the balance. Using credit to pay for vacation may be a good option for employees who qualify for prime credit and are able to make full payments, but usually it is not the best choice for many consumers who are only able to pay off their minimum balance.
Our employee purchase program includes a variety of vacation options (hotels, cruises, destination resorts and all-inclusive resorts) that appeal to workers across all demographics and they can have the cost deducted from their paycheck through manageable payments over 12 months.
Download Purchasing Power’s latest infographic on this topic, Vacations: A Luxury or A Necessity?