July 17, 2025
Americans are approaching summer travel in more budget friendly ways according to new survey which indicates travel budgets are slimming.
As summer arrives, an increasing number of Americans are opting for shorter, more budget-friendly vacations. An Ipsos survey for Generali Global Assistance, published on May 27, found that planned vacation spending has decreased by approximately 25%.
Many potential vacationers are delaying travel bookings altogether, driven by economic anxiety and rising costs. The amount Americans spend has plunged from an average of $4,199 in 2024 to $3,132 in 2025. Additionally, 56%of Americans say they expect to travel less this summer.
Data shows a decrease in domestic flights and hotel stays. June marked the lowest number of vacationers since mid‑2020, while U.S. hotel occupancy fell 1.7 % year‑over‑year. Analysts say consumers are substituting long getaways with day trips, road journeys, or staycations. More than half of the respondents cite financial concerns as their primary reason.
In many cases, Americans are being more cautious about spending. The weaker U.S. dollar and concerns about new tariffs, which could potentially raise the cost of groceries and other consumer goods, have contributed to rising unease.
Although airline ticket prices and hotel rates have declined modestly, households appear to be reluctant to spend.
Sam Head, a small business owner and Milwaukee resident, told The Washington Post about his toned-down summer plans. The head’s family is no stranger to summertime fun. Yet, to compensate for his recruiting business’s slow year, he will not be undertaking any extended travel.
“Do I worry about where things are going? Of course. I already see it in my numbers,” the 35-year-old said. “We’re cutting back on any nondiscretionary spending so we can keep more money in our pockets.”
Similarly, Galveston teacher Chelsea Padilla said she opted for a budget‑friendly Florida trip using credit card points. Padilla also says she is saving money by foregoing fancy restaurants. The educator is opting for cheaper meals while traveling.
Industry figures are responding with promotions tailored to local travelers. The Arizona Biltmore Resort, for instance, is offering 40% off day-pass packages and free parking for guests from nearby states.
Flight search platforms report that summer bookings are 10% lower than last year, despite fare discounts.
Luxury travel, however, remains strong. Wealthier consumers continue to book international trips and premium accommodations.
Economists fret that travel budgets are often the first to be cut during financial uncertainty. These trends may be an indicator of broader economic weakness. But with booking windows shortening and deals emerging, some households may still plan modest trips before the season ends.
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