The Clark Howard Podcast

Episode: 01.14.26 – Travel Buyer Beware / Clarkonomics: The 2026 Growth Recession

Host: Clark Howard
Date: January 14, 2026

Episode Overview

In this episode, Clark Howard addresses two critical financial topics:

1. The rising dangers of booking travel through unfamiliar or “UFO” (unidentified flying online) travel sites and the risks of travel scams, especially when buying airline tickets.
2. The current state of the U.S. economy, introducing the concept of a “growth recession,” and providing actionable advice for listeners to safeguard their personal finances amid uncertain times.

Throughout the episode, Clark also answers listener questions on travel upgrades, airline choices, TSA Precheck renewals, moving closer to family, setting up separate bank accounts for security, and mortgage document verification.

Key Discussion Points & Insights

1. Travel Scams & Booking Warnings

[00:36 – 15:26]

• Prevalence of Travel Scams:
  Clark begins with a cautionary tale regarding the increasing frequency of travel scams. He recounts a story where a person was banned from Alaska Airlines after unknowingly purchasing a ticket with a stolen credit card via a suspicious site or social media deal.

  “There’s an enormous problem now in the travel industry… where criminals are stealing credit card numbers or stealing people’s points… and then on various shopping sites or social media, [they sell] you the ticket at a special price… and you are the one who’s on the hot seat.” (Clark Howard, 01:05)

• Risks of Unfamiliar Booking Sites:
  Clark describes “UFO” booking sources (sites you’ve never heard of) promising low prices but delivering scams, especially in hotels—travelers arrive only to find no record of their booking.

  “Buyer beware. Almost certainly you’re stepping into trouble with the hotels… The crook just stole your money and there was never any hotel booking.” (Clark Howard, 02:30)

• Clark’s Advice on Booking Safe:

  • Stick to recognized brands such as Priceline, Expedia, and Hotels.com.
  • For airline tickets: book directly with the airline or known third-parties.
  • If a fare seems too good to be true—especially via social media—don’t risk it.

• On Mileage Brokering:
  Clark warns against agencies or people selling business-class seats via frequent flyer points (so-called mileage brokers), saying it “does not work out well in most cases” and violates most airlines’ terms.

  “Points are supposed to be used by you or by a family member or friend… not to be sold to strangers.” (Clark Howard, 05:27)

2. Listener Q&A: Travel Upgrades, Boutique Airlines, and Booking Tips

[07:10 – 15:26]

• Upgrading to Business Class & Deal Hunting:

  • Caller “Cal” explains the allure of business class for long-haul flights, but worries about affordability as prices hover around $8,000 per person.
  • Clark acknowledges boutique carriers (e.g., La Compagnie, Starlux, Condor), which offer premium seats at a fraction of the price. The catch: these airlines have limited routes and flights, which can be problematic if something goes wrong.
  • Trusted credit card portals can be safe and sometimes have exclusive deals.
  • Last-minute upgrades at the airport can yield savings, though it’s risky.

  “There are these boutique airlines… that offer business class fares at 1/4 usually what they are from a big European airline. I’ve flown my company… Valentine’s Day special… business class for I think it was $1,499 roundtrip.”
  (Clark Howard, 08:21)

• General Business Class and Booking Tips:

  • For international business class, consider routing via bigger cities with better deals (e.g., NYC to Europe with Condor).
  • Auction-style upgrades can be rewarding, but Clark admits:

    “I never bid enough. I never get the upgrade because I’m too cheap.” (Clark Howard, 10:40)

• First Class vs Business Class:

  • Few airlines now offer international first class; business class is now the typical “lie-flat” premium cabin.
  • Ultra-premium products like Etihad’s The Residence are rare.

3. TSA Precheck Renewal Providers

[13:58 – 15:26]

• Multiple private companies now handle TSA Precheck renewals at different prices.
• Check if your travel-focused credit card reimburses the renewal—Clark calls “free” the best price.
• No complaints on any provider; select the cheapest available at the time.

4. Clarkonomics: The 2026 Growth Recession

[15:51 – 20:03]

• What is a Growth Recession?
  The economy is growing, but not fast enough to provide employment security or rising standards of living for all. The “K economy” sees the affluent benefiting from high asset prices while many others struggle with job and pay concerns.

  “We are in the K right now—people at the higher end of the income brackets are doing very well… The rest are having a really hard struggle.” (Clark Howard, 17:40)

• Clark’s Playbook for Uncertainty:

  • Build up an emergency fund.
  • Reduce debt obligations.
  • Prepare for potential job loss or reduced pay.
  • Don’t panic, but “prepare for the unexpected by building up financial security in your life.” (Clark Howard, 19:46)

5. Listener Q&A: Moving for Elderly Parents, Housing Choices

[20:03 – 23:43]

• Selling & Renting vs. Keeping the Old Home:
  • Caller considers selling a 100-year-old house and renting near aging parents in assisted living.
  • Clark advises selling, due to high maintenance costs and freeing up equity for investments. Renting isn’t “wasting money” if it provides comfort and family connection.
  • Human factors matter—consider loneliness and community ties.

  “The net cost to you of renting… versus continuing to live in this paid-for home is less than you might imagine.” (Clark Howard, 22:22)

6. Banking Tips: Separate Accounts for ACH Security

[23:43 – 25:52]

• Setting up a separate checking account at the same institution does not add security due to cross-default rules (banks can pull from other accounts to cover overdrafts).
• Use an online bank with no fees as a dedicated “ACH-only” account and move funds as needed to limit risk from auto-pays.

  “You open a separate account… with an online bank… and transfer money to it to cover your drafts… then the money you have at Navy Federal or Schwab are not at risk.” (Clark Howard, 25:00)

7. Mortgage Transfer Verification Concerns

[25:52 – 27:00]

• Caller finds Rocket Mortgage is requesting full personal information to access tax documents on their platform.
• Clark reassures: it's standard for banks to verify identity during mortgage servicing transfers. The risk is higher from massive data breaches, not from the verification process itself.

Notable Quotes & Memorable Moments

• “You can’t unsee it. Once you go business you can’t go back.”
  – Clark and Caller joking about premium travel ([07:37])

• “Buyer beware. Almost certainly you’re stepping into trouble…”
  – Clark Howard on UFO travel booking sites ([02:30])

• “Inflation is still with us… I’m an optimist on that. I think we’ve seen the worst… but it’s really an educated guess.”
  – Clark Howard ([16:55])

Timestamps for Important Segments

• 00:36 – Episode begins; travel scam warning
• 02:30 – Hotel booking scam explanation; UFO sites
• 05:27 – Mileage brokers and frequent flyer scams
• 07:10 – Listener: Business class upgrades/travel deals
• 08:21 – Clark on boutique airlines and Condor
• 10:40 – Ticket upgrade auctions
• 13:58 – TSA Precheck renewal question
• 15:51 – Economy overview; growth recession explained
• 17:40 – The “K economy” and widening inequality
• 19:46 – How to prepare financially for uncertainty
• 20:03 – Listener: Sell and move for elderly parents?
• 22:22 – Real costs of owning vs. renting
• 23:43 – Listener: Separate ACH account strategy
• 25:00 – Why a separate online bank account works
• 25:52 – Listener: Mortgage transfer verification safety

Episode Summary

This episode blends up-to-the-minute warnings on travel fraud with candid, practical financial guidance for a potentially uncertain economic year. Clark’s advice is down-to-earth and always centers on consumer empowerment—“save more, spend less, and avoid ripoffs.” From the pitfalls of discount travel sites and the seduction of premium travel, to economic headwinds and strategies for personal security, Clark backs up his points with real stories, engaging listener Q&A, and an approachable mix of wit and wisdom.

For reliable consumer and financial guidance, check out resources at Clark.com and ClarkDeals.com.

For more listener Q&As, deal tips, and in-depth economic analysis, tune in weekly and join the Clark Howard community.