Travel remains a top priority for Americans, but a new survey shows U.S. travelers are shifting how they vacation in 2025.
With economic uncertainty looming, many are emphasizing affordability and maximizing rewards points over extravagant trips.
Why It Matters: Economic pressures are clearly shaping traveler behavior. These trends carry important implications for the travel industry and content creators who cater to value-minded adventurers.
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Travel Demand Stays High, Despite Economic Jitters
Americans’ appetite for leisure travel is still robust.
In fact, over 87% of respondents in a recent State of the American Traveler survey say they’re eager to take leisure trips in the year ahead, and nearly 9 in 10 have at least one vacation already planned.
Travel has firmly taken root as a household priority for most families.
On average, travelers even expect to spend about $6,184 on leisure travel in the next 12 months – a record-high budget that far exceeds the historical norm of around $4,600.
However, this enthusiasm comes with a dose of caution. Only 35% of those surveyed feel that now is a good time to splurge on travel, reflecting softened confidence in leisure spending amid financial uncertainty.
While one-third of Americans say they feel better off financially than a year ago, a quarter feel worse.
Travel’s position in household budgets has also slipped slightly – 56% rank travel as a top spending priority, down from 62% a year prior.
Nearly half of respondents even expect a U.S. recession within six months. In this mixed economic climate, travelers are determined to get away but are clearly keeping a closer eye on costs.
Value Over Luxury
Given these economic jitters, a large majority of Americans (about 66%) say they will adjust their travel behavior to cope.
Several clear patterns are emerging as travelers tighten their wallets and seek more bang for their buck:
- Choosing budget-friendly destinations: 29% of U.S. travelers plan to pick more affordable destinations for their trips. Rather than pricey international hot spots or luxury resorts, many are eyeing domestic or off-the-beaten-path locations that offer better value. In fact, one survey found 39% of Americans are likely to travel domestically instead of internationally to save money. Cheaper locales and road-trip getaways are becoming especially attractive in the quest to stretch travel dollars.
- Leaning on loyalty rewards: 26% of travelers expect to utilize rewards programs and points to defray costs. This includes tapping airline miles, credit card points, hotel loyalty nights, and other perks to cover flights or lodging. Travel experts note a widespread trend of vacationers strategizing with points and miles – in a recent summer travel study, 91% of travelers said they are taking steps to save money, with 39% using credit card rewards to offset expenses. Clearly, maximizing rewards programs has become a key tactic for Americans looking to travel well without paying full price.
- Fewer trips or shorter getaways: About 22% intend to travel less often overall, dialing back the number of vacations or shortening the length of trips to reduce spending. While most Americans still plan multiple trips (the average is 3.7 leisure trips in the next year), some are deciding to skip that extra vacation or settle for a long weekend instead of a two-week journey. This “less frequent but more strategic” approach helps ensure travel fits within tighter budgets.
- Cutting back on extras: Roughly 19% say they will cut spending on trip activities and attractions. Rather than splurge on costly excursions, tours, or gourmet restaurants at every stop, travelers may prioritize free or low-cost experiences. They’re favoring simple pleasures – hiking, beach days, street food – over expensive add-ons. This aligns with broader reports of a frugal mindset: industry research by Deloitte finds travelers are trimming in-destination expenses and opting for more driving instead of flying to save money. In short, vacation itineraries are becoming leaner, focused on what matters most while skipping high-priced frills.
- Canceling or postponing plans: As a last resort, 15% even expect to cancel trips outright if economic conditions worsen. Trip cancellations remain a minority response, but the fact that 1 in 6 travelers is prepared to scuttle a vacation underscores the level of cost concern out there. Most Americans are determined to travel if possible – but they do have a limit if finances get truly tight.
These adjustments paint a picture of travelers who still deeply value travel, yet are proactively finding ways to make travel more affordable.
From picking cheaper destinations and accommodations to cashing in reward points and paring down itineraries, Americans are recalibrating their travel habits to fit within smaller budgets.
As one travel expert put it, “Americans are determined to travel… but they’re getting creative to make it affordable,” emphasizing tactics like road trips, points redemptions, and budget lodging over luxury splurges.
Affordability and Rewards
The shift toward affordability and rewards reflects a pragmatic response to economic pressures.
Many travelers now view value as king – they are chasing deals, comparing prices, and timing trips for off-peak savings.
Travel companies are noticing this demand for value: airlines and hotels have ramped up promotions for off-season travel and are highlighting loyalty program benefits more than ever.
For example, hotel brands report that loyalty participation is surging, as cost-conscious guests look to redeem points for free nights or upgrades.
Even content creators and travel influencers have pivoted to produce more “budget travel hacks,” “cheap destination guides,” and points-and-miles tutorials to meet the public’s interest in saving money while traveling.
Crucially, travelers don’t appear ready to give up on vacations altogether – they’re simply prioritizing cost-savings and comfort wherever possible.
Travel is still seen as a worthwhile investment by a majority of Americans, even in lean times.
Nearly half of those surveyed believe their household finances will improve in the next year, indicating some optimism that today’s belt-tightening may be temporary.
In the meantime, though, they are making every trip count by leveraging rewards and seeking maximum value for each dollar spent.
This trend carries important implications for the travel industry. Airlines, hotels, and tour operators must be nimble and cater to value-seeking travelers.
Experts suggest offering timely deals and streamlined, no-frills quality service to appeal to budget-conscious customers.
Destinations that market themselves as affordable or offer strong bang-for-buck experiences could attract more visitors as Americans actively research cheaper alternatives.
Travel advisors and content creators can also play a role by curating itineraries that balance fun with frugality – highlighting free attractions, local discounts, or ways to use points effectively.
Strategic Travel in 2025
Barring any severe economic downturn, industry watchers anticipate Americans will continue traveling in large numbers through 2025, but with a “do more with less” mindset.
We’re seeing fewer lavish, spare-no-expense vacations and more strategic travel planning.
Families might take one big trip instead of two, or choose off-season, affordable travel trends – for instance, opting for a charming small-town getaway over an expensive big-city excursion.
They are more likely to ask “How can we experience this destination cheaply or via our rewards?” than in years past.
The good news for travel businesses is that demand remains resilient: travel has become ingrained as a key contributor to Americans’ quality of life.
The challenge (and opportunity) is adapting to travelers’ new priorities.
Those in the industry who emphasize value, rewards, and customer comfort are likely to earn the loyalty of this cost-conscious generation of travelers.
After all, even as wallets stay under pressure, the American traveler’s spirit of adventure is alive and well – it’s just being carried out with an eye on the budget and a pocket full of rewards points in 2025.
Sources:
- David Gordon, “The State of the American Traveler: September 2025,” Airport X News (Sep. 11, 2025).
- Erin El Issa, “2025 Summer Travel Report,” NerdWallet (May 2025).
- “2025 Summer Travel Trends Revealed,” Airbnb Newsroom (May 2025).