Toss FOMO aside this summer. Your wallet — and mental health — will thank you.
A recent opinion piece in the New York Times resurfaced the Nobel laureate Herbert Simon’s concept of “satisficing:” a combination of satisfying and sufficing. That may be the healthiest way to handle a summer travel season that’s looking more expensive and unequal than usual.
Over the last few years, the economy has turned K-shaped, a situation where higher earners are spending consistently while lower earners are cutting back. That’s showed up everywhere from groceries to travel spending — meaning that, come peak vacation season, we’ll see a lot of spending on luxury travel as lower-earners’ budgets keep them stateside.
Luxury hotel occupancy rates and revenue per available room have grown, while both metrics have tumbled for economy hotels, per a PWC analysis. Research from the Bank of America Institute found that around a fifth of travelers will reduce their number of trips this summer, and that lower-income households were less likely to have booked travel.
Even the humble road trip could be too pricey, as gas prices stay volatile. My colleague Emily Stewart declared in March that it was shaping up to be the summer of staycation. I know that I’m already planning on muting some Instagram stories of various getaways.
But behavioral economics says that satisficing with a local beach or barbecue, rather than straining to pull off the best vacation possible, might feel better in the long run. Sitting across from the satisficers are the maximizers — folks who instead seek out the best possible option, especially as the number of options increases.
Being a maximizer, it turns out, can be a not-so-fun experience: Social science studies on maximizers found that they’re less satisfied than nonmaximizers with their consumer decisions; more sensitive to regret; and more likely to make social comparisons. In summer vacation terms, that means it might not be worthwhile to chase that fabulous party, or perfect under-the-radar spot, or obsess over getting the best bang for your buck.
Michele Williams, a professor of management and entrepreneurship at the University of Iowa who’s studied how people respond to FOMO, said those feeling left behind in the summer vacation rush should seek out local activities they’d usually only do if they had people visiting — things like movies or music in the park.
She’s already noticed an anecdotal uptick in localities promoting and booking neighborhood get-togethers. So, if behavioral science and economics gives the workers of America anything, perhaps it’s the knowledge that having a just-nice-enough time at your local beach might be worth more than straining your finances.
“In real life, usually choosing something that is enjoyable, is good enough, has benefits, is what’s going to make your life happier,” Williams said.
