Economic Strain Leads to Fewer Americans Planning Summer Vacations
New York, Thursday, 24 April 2025.
A survey reveals that 68% of Americans cite high daily living expenses, rather than travel costs, as the main reason for not planning summer vacations in 2025.
Decline in Summer Travel Plans
Bankrate’s 2025 Summer Travel Survey indicates a notable shift as fewer Americans plan to embark on summer vacations this year, with only 46% intending to travel, a drop from 53% in the previous year [1][2]. This decline largely reflects the rising cost of day-to-day living expenses rather than the expenses directly associated with travel itself. Consequently, 68% of survey respondents cited general living costs as the primary deterrent to planning vacations in 2025, whereas only 64% mentioned travel costs specifically [1].
Economic Pressures and Consumer Behavior
The survey exposes a broader economic apprehension impacting consumer behavior. Recent economic uncertainties, including concerns about potential recessions and inflationary pressures, have contributed to a decline in consumer sentiment, prompting many to reconsider their discretionary spending, such as travel [1][2]. Furthermore, Ted Rossman, a senior industry analyst at Bankrate, remarked on an increase in layoffs and anticipated price hikes as factors influencing consumer hesitance towards making travel commitments [2].
Financial Strategies and Demographic Insights
For those who decide to travel, managing finances is a significant concern. The survey reveals that while 29% of individuals plan to use debt to fund their vacations, the majority prefers paying with cash (56%) or using debit cards (47%) [2]. Additionally, Millennials are notably more inclined to incur debt for travel, with 34% willing to finance their trips using credit cards and some planning to repay these debts over time [2]. This demographic insight illustrates a strategic approach to balancing financial constraints with the desire for leisure pursuits.
Implications for the Travel Industry
Despite the reduction in travel plans, current domestic spending on travel and tourism is reportedly higher than pre-pandemic levels of 2019 [2]. The travel sector is a significant component of the U.S. economy, accounting for about 3% of the national GDP and employing approximately 6.5 million people as of 2023 [2]. The reduction in domestic travel intentions, however, may signal potential challenges for the industry, as fewer families are setting out for summer vacations, suggesting an uncertain outlook amid current economic pressures [1][2].