U.S. Travelers Plan Frugal Summer Vacations amid Economic Uncertainty

Despite an increase in the number of Americans planning leisure vacations this summer, many are cutting back on spending due to economic concerns, according to a new report from Deloitte. About 53% of survey respondents said they plan to take a leisure trip this summer, up from 48% in 2024. However, budget expectations have shifted.

Deloitte’s two-part survey found that after a wave of recession fears sparked by President Donald Trump’s announcement of widescale tariffs and a sharp stock market decline, consumers began reducing their travel spending plans.

A hand holds a jar full of cash, labeled with a note reading "Where to next?" | Source: Pexels

Initially, the average summer travel budget was projected to rise 21% year over year to $4,967. But by early April, that increase was scaled back to 13%, or $4,606. Budget expectations for travelers’ longest trip also dropped, from $3,987 to $3,471 — nearly flat compared to 2024.

“We still see a strong summer travel season, but perhaps with a more frugal approach,” said Kate Ferrara, transportation, hospitality and services sector leader at Deloitte. The firm conducted a second survey after detecting “softness” in consumer spending trends.

Travelers are adjusting in various ways. About 34% plan to reduce in-destination expenses, such as dining and paid activities. Thirty percent intend to stay with friends or family, and 21% are opting to drive instead of fly.

A man with a backpack stands in silhouette, gazing pensively toward the horizon. | Source: Pexels

Lower travel costs may help stretch budgets. Domestic airfare averages $265 per ticket, down 3% from last year, according to travel site Hopper. Airfare to Europe averages $850, down 8%. Hotel and rental car rates are also slightly lower.

Flexibility is key to saving, experts note. Traveling on off-peak days or outside federal holidays can result in significant savings. “The root of all of our hacks for saving this summer is flexibility,” said Hopper’s lead economist, Hayley Berg.