More Americans plan to travel this holiday season, but their travel budgets will be tighter than last year. That’s the main finding of Deloitte’s research on US holiday travel trends.
More than half of respondents (54%) said they plan to travel from November to mid-January, but the average travel budget is down 18% from 2024 (to $2,334). Most worryingly, however, for the travel industry, 38% say they won’t be able to travel this year.
“Many Americans are cutting back on flights and overnight stays, with tighter wallets,” said Kate Ferrara, vice president and leader of Deloitte’s transportation, hospitality and services practice, noting that while travelers want to be with loved ones, they are hesitant to spend on upgraded experiences or extended stays.
While some of the public plans to increase their spending, that number is limited to 19% (down 9 percentage points from last year). Of those who say they will spend more, one in five say they haven’t taken a major trip recently and have more financial leeway. However, even in this category, “luxury splurges” appear to be limited: just 36% plan to stay more luxurious, down from 44% in 2024.
Younger travelers cut back the most – Boomers increase spending
Gen Z is seeing the biggest reduction in travel budgets, down 31% year-over-year. For the first time, Gen Z and Millennials make up 50% of the holiday travel audience.
In contrast, Boomers are the only generation not planning to cut back – in fact, they are increasing spending by 4%.
Fewer trips, shorter duration, fewer experiences
American travelers are planning fewer and shorter trips this year: 1.83 trips on average, down from 2.13 in 2024.
High-income travelers ($100,000+ per year) are showing the biggest decline: down from 2.5 trips last year to 1.9. Additionally, 16% plan to significantly reduce the budget for their biggest trip of the season (up from 11% last year). Many say they will cut spending at the destination (37%) or choose less luxurious accommodations (35%).
Overall, 28% of travelers plan to limit spending at the location – up from 22% last year. Decreases are expected in activities, events and attractions: ticketed events are down 9 percentage points, day tours are down 8, and attractions are down 7.
More driving, less flying
A big increase is recorded in road travel: 29% plan to travel by car, compared to 21% last year. Less than half (47%) will take a flight for their longest trip, down from 55% in 2024. Among high-income travelers, the decline is even greater: 53% will fly this year, compared to 63% last year.
