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July 21, 2015 08:00 ET

BMO Private Bank Study: Affluent Americans Plan to Spend an Average of $13,000 on Vacations This Year

- Sixty-three percent plan to travel three times or more a year for pleasure

- They expect to spend an average amount of $2,900 per trip

- Most plan to travel within the United States and during the spring and fall seasons

CHICAGO, ILLINOIS--(Marketwired - July 21, 2015) - BMO Private Bank, a part of BMO Financial Group, released the results of a study today profiling a high-net worth vacation, just as we hit the peak of summer vacation season. The study is part of BMO Private Bank's Changing Face of Wealth series, examining trends among affluent Americans (those with more than $1 million in investible assets).

According to the study, affluent Americans expect to spend an average of $13,249 on leisure travel this year (including airfare, accommodation, food, etc.). Further:

  • High-net worth Americans plan to spend an average of $2,902 per trip.
  • Sixty-three percent plan to take more than three trips this year, with the average affluent American taking six trips for pleasure.
  • Seventy-seven percent choose to fly economy, and the rest (23 percent) choose business or first class.

"Regardless of your income level, ensuring you are financially prepared for your trip will help you make the most out of your vacation, allow you to relax and escape the stress of everyday life," said Darrel Hackett, President, BMO Private Bank. "If you're passionate about travel, a financial professional can work with you to develop a comprehensive wealth plan that includes a leisure component. This would take into consideration how often you'd like to vacation, and the type of overall experience you'd like to have - whether it is flying economy versus business class or staying in five-star accommodations."

Affluent Prefer Spring, Fall Travels

The study also found that upon arrival, most high-net worth travelers prefer to stay in a four-star hotel (69 percent). Additionally:

  • Twenty-four percent choose an all-inclusive resort.
  • Timeshares are also popular, whether owned by themselves (19 percent) or others (15 percent).
  • Twenty percent prefer a five-star hotel.

Surprisingly, high-net worth Americans lean toward the spring (72 percent) and fall (76 percent) for their favorite travel times; fewer than one fifth find themselves traveling during the holidays (17 percent). Summer came in third, with 64 percent usually traveling at that time.

Most affluent Americans choose to travel within the United States (89 percent), while nearly half said they travel to Europe (49 percent). Other travel destinations included Canada (30 percent), Asia (25 percent), Mexico (22 percent), Central/South America (17 percent), and Australia (18 percent).

"Traveling abroad can introduce some complications that may deter you from leaving your home," Mr. Hackett said. "However, a financial professional can help you identify what possible issues may arise - such as a difference in currency or spike in prices during certain seasons - and help you prepare for them to ensure your trip flows seamlessly and is enjoyable for everyone."

Breakdown by State:

Region Average amount ($) spent on vacations per year Average amount ($) spent per trip Average number of trips taken per year
Arizona 13,245 3,526 4
Illinois 15,144 3,354 5
Florida 20,116 12,606 4
Indiana 10,838 3,242 5
Virginia 13,020 2,697 5
Washington State 15,838 3,355 5
Wisconsin 10,168 2,344 6
Missouri 7,595 2,600 4
Minnesota 12,849 2,184 6
Other USA 12,858 2,136 7

Survey results cited here are from online interviews with a sample of 493 Americans 18 years of age and older who have at least $1 million in investible assets. Surveys were conducted between October 15 and October 28, 2014.

About BMO Private Bank, a Part of BMO Financial Group

BMO Private Bank offers a comprehensive range of wealth management services that include investment advisory, trust, banking and financial planning to meet the financial needs of high-net worth clients. Through integrated teams of experienced financial professionals, BMO Private Bank helps its clients realize their financial and lifestyle goals with solutions that are custom tailored and delivered with the highest level of personalized service.

BMO Private Bank is a brand name used in the United States by BMO Harris Bank N.A. Member FDIC. Not all products and services are available in every state and/or location.

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