The End Of Budget Tourism

🚀 Streamline your entire business with Odoo — the all-in-one, easy-to-use ERP platform that centralizes, automates, and scales your operations from sales and accounting to inventory and eCommerce. Check them out using my link 👉🏻 https://www.odoo.com/r/cWA ---- Finance With Nick's Video - https://youtu.be/Puh3u-387OE?si=ZqaDARaXItdxCO98 Sign up for our FREE newsletter! - https://www.compoundeddaily.com/ Books we recommend - https://www.howmoneyworkslibrary.com/ Listen on Spotify - https://open.spotify.com/show/5gi1JobDJC3QqaF4aKfenR?si=f3IsgWIlSKObF8BT1Fitig ----- My Other Channel: @HowHistoryWorks @HowMoneyWorksUncut @De-Monetised Edited By: Svibe Multimedia Studio Music Courtesy of: Epidemic Sound Select Footage Courtesy of: Getty Images 📩 Business Inquiries ➡️ [email protected] Sign up for our newsletter https://compoundeddaily.com 👈 All materials in these videos are for educational purposes only and fall within the guidelines of fair use. No copyright infringement intended. This video does not provide investment or financial advice of any kind. #money #travel #business *** Sources *** https://www.nytimes.com/2024/11/18/business/spirit-airlines-bankruptcy.html https://www.npr.org/2025/08/30/nx-s1-5522901/spirit-airlines-bankruptcy-filing https://apnews.com/article/spirit-airlines-trump-bailout-bankruptcy-37a4818e1b71c0905d022f669d85948c https://www.cnbc.com/2026/05/01/spirit-airlines-trump-bailout.html https://www.visualcapitalist.com/median-house-prices-vs-income-us/ https://fortune.com/article/gen-z-job-hunt-compared-to-millennials/ https://www.oldnational.com/resources/insights/half-of-americans-plan-to-take-on-holiday-debt-here-s-how-to-avoid-it/ https://www.going.com/guides/going-deal-report https://www.wsj.com/business/airlines/why-the-collapse-of-spirit-airlines-means-higher-fares-for-everyone-0e4990aa https://internova.com/rising-travel-costs-reshape-how-americans-travel-in-2026-internova-travel-group-research-finds/ https://www.bloomberg.com/news/articles/2024-04-05/four-seasons-yachts-reveals-itineraries-and-pricing-up-to-330-000-per-week https://www.sec.gov/Archives/edgar/data/1559720/000119312526048670/d58192dex991.htm https://www.wsj.com/real-estate/new-yorks-airbnb-crackdown-in-force-for-two-years-hasnt-improved-housing-supply-eb231536 https://www.reuters.com/business/barcelona-doubles-tourism-tax-one-highest-europe-fund-housing-2026-02-25/ https://cambridgecurrencies.com/usd-forecast-2026/ ---- After declaring bankruptcy in 2024, and then again in 2025, 2026 finally finished things off as Spirit Airlines shut down entirely about 2 weeks ago now, following their failure to secure a last minute government bailout. Now this particular business closure wasn’t exactly shocking to anybody that had actually been following the company, but the end of this otherwise unremarkable low cost carrier might be both the indication of, and the cause of a wider reversal across the entire travel industry. The last three decades in particular really have been the golden age of budget tourism, with most significant travel related expenses like air fares and accommodation lagging behind overall inflation to become significantly cheaper in real terms. For a lot of people this was a very real lifestyle reprieve to offset a lot of other financial challenges… sure they may never be able to afford a home and their career may be increasingly precarious compared to their parents. But even a basic income (potentially mixed in with a little bit of new age consumer debt) could let people see the world in a way that was genuinely reserved for the jetset just a generation before. According to the booking company “Going” this time last year was the second cheapest month on record for airfares, which they noted in their report was… unlikely to change unless there were any major shocks in 2026… So umm yeah… Anyway, the reality is today there are several headwinds that are all pushing back against the trend of budget friendly travel, and increased fuel costs are just one small part of the puzzle. The closure of Spirit may be equally the result of their own poor practices mixed in with unfavorable market conditions, but no matter where the finger is eventually pointed, without their low cost seats in the market, regular airlines have much less pressure to be competitive on THEIR prices, which is a dynamic playing out in far more places than just this one specific example… Travel related expenses are up by 20% year over year, and this was already happening before we started making a… uhhh… distraction...