That dream vacation might feel a little further away right now, doesn’t it? If your travel plans are looking different this year, you’re definitely not alone. Many folks are looking at their budgets and seeing a growing trend of Americans cutting back on travel. It seems economic worries are putting a bit of a damper on our collective wanderlust, leading many Americans cutting back on travel more than they have in recent years; this sentiment is echoed in many reports, even those you might find if you start reading news tips from various financial outlets.
A recent LendingTree survey painted a clear picture. It found nearly three out of four Americans worry that the economy might affect their getaway plans. This isn’t just a fleeting thought; it’s leading to real changes in how we approach our time off, affecting everything from international trips to simple weekend getaways.
Table Of Contents:
- Why Are Wallets Feeling Lighter for Travel?
- Americans Cutting Back on Travel: The Hard Numbers
- What’s Spooking Travelers Besides Just Prices?
- Rethinking Your Trip? Smart Ways to Adjust (Not Just Cancel)
Why Are Wallets Feeling Lighter for Travel?
It’s hard to ignore the general hum of economic concern these days. This feeling directly impacts big decisions, like booking a trip. The survey showed that a whopping 71% of Americans are concerned economic conditions will indeed affect their ability to travel, a figure that many a Business Insider article has also highlighted when discussing consumer spending habits.
Younger generations seem to feel this pressure even more. About 83% of Gen Zers, those aged 18 to 28, expressed this worry, possibly due to a less stable job market for early-career individuals. Millennials, aged 29 to 44, weren’t far behind, with 75% feeling the same, often juggling family expenses with their travel desires. This contrasts with 67% of Gen Xers (ages 45 to 60) and 63% of baby boomers (ages 61 to 79), though even these groups show significant concern, impacting their plans for summer travel.
For families, the strain is also very apparent. A staggering 82% of people with children younger than 18 are wary of the economy’s impact on future trips, often involving multiple family members. This makes sense, as travel often gets more expensive with kids in tow, from needing larger accommodations to more airline tickets.
A big part of this concern comes from what people are seeing, or at least perceiving, with costs. A majority, 57% of consumers, said they’ve noticed a recent increase in the cost of traveling. This perception fuels the decision to reconsider or delay plans for both domestic trips and international adventures. Interestingly, data from the U.S. Travel Association in April 2025 showed airline fares were actually 7.9% lower than the previous April, as April told a story of some relief in specific sectors. Lodging was also 2.4% cheaper, and gas was down 11.7%.
So, why the disconnect between these figures and public sentiment? Matt Schulz, LendingTree’s Chief Consumer Finance Analyst, sheds some light. “Prices are still high for so many things,” he explains, indicating that overall inflation in daily necessities heavily influences personal finance decisions. He notes that many Americans are also concerned that potential tariffs might make things even worse, impacting consumer confidence further. These general cost-of-living pressures, uncertainty about the stock market, and future fears likely make even slightly cheaper travel feel less affordable overall, leading to caution with discretionary spending.
People are acting with caution, delaying bigger expenses like vacations until things feel more stable. The broader economic uncertainty makes individuals hesitant to commit to large expenditures, even if specific travel components show price decreases. This careful approach to spending reflects a shift in priorities, where building savings or paying down debt might take precedence over leisure travel for many American tourists.
Americans Cutting Back on Travel: The Hard Numbers
These worries aren’t just thoughts; they translate into action. Over half, specifically 53% of Americans, are reducing the number of trips they plan to take. This trend is more pronounced among parents with young children, with 63% cutting back, and Gen Zers also notable, with 57% scaling down their travel, sometimes waiting longer to book anything.
You might think higher earners would be immune to these pressures. But the data shows something surprising, a point often discussed by insider subscribers to financial news. People with higher incomes are just as likely, if not more so, to cut back on trips than those earning less.
- 47% of those earning less than $30,000 are cutting back.
- 56% of those earning $30,000 to $49,999 are doing the same.
- For the $50,000 to $99,999 income bracket, it’s 55%.
- And for those earning $100,000 or more, it’s also 55%.
This shows a broad-based shift in travel habits across the economic spectrum, affecting the entire travel industry. The consistency across income levels suggests a widespread reaction to perceived economic instability rather than affordability alone. Higher earners might be more exposed to stock market fluctuations or more closely follow economic forecasts that suggest prudence.
Beyond just taking fewer trips, many are making tougher decisions. The travel survey found that 35% of Americans have canceled or postponed a trip in the past year. Again, parents with kids younger than 18 (47%) and Gen Zers (46%) show higher rates of such changes, perhaps needing to save money more urgently. This is a clear indicator of immediate reactions to economic feelings and a desire to improve their personal finance situation.
Not everyone is outright canceling, though. Some are adapting by changing their destinations, with about 23% are opting for different travel spots. This includes 31% of the highest earners, those with incomes of $100,000 or more, suggesting they might be looking for more budget-friendly alternatives, possibly choosing a trip to Los Angeles over a more expensive international destination, or even considering if they should travel within driving distance for their next vacation. This flexibility indicates a desire to travel but within new financial constraints.
Schulz points out a silver lining to these adjustments. “Dialing back your vacation plans can free up money,” he says. This money can go toward other important financial goals. These could include building an emergency fund or paying off high-interest debt from credit cards. He admits it may not be fun. But these moves can give greater peace of mind during uncertain economic times. Plus, scaling back now might let you save for an even better vacation later, paid for mostly with cash instead of debt, avoiding the stress of travel-related financial burdens.
What’s Spooking Travelers Besides Just Prices?
While the economy is a major factor, it’s not the only thing on travelers’ minds. Other global issues are also influencing decisions, especially for international travel. Some concerns stem from policy, while others are more about personal travel safety and comfort abroad.
The Tariff Talk: Real Threat or Just Worry?
The discussion around tariffs has created its own layer of uncertainty. Four in 10 Americans say that tariffs have affected their potential travel plans. This figure jumps to 52% among Gen Zers, showing it’s a significant concern for younger adults. This might be contributing to a shift in destination preferences, with some reconsidering extensive international trips.
However, Schulz suggests some of this tariff-related anxiety might be more about fear than current reality. “For the most part, I think the fear of the possible impact of tariffs is weighing far more heavily on people than the actual current impact,” he observes. People are worried tariffs will drive prices up for almost everything, including travel, and are carefully watching news tips for updates. So, they’re being more cautious, waiting to see how things unfold before committing to big travel spends, potentially impacting summer travel bookings significantly.
This caution could be a key reason why 67% of Americans say they are now more likely to choose domestic destinations over international ones. If international travel becomes more expensive, or is perceived to be, staying within the U.S. can seem like a safer financial bet. For instance, a weaker U.S. dollar, easily checked with a currency converter, can make trips to Europe pricier, making a stateside vacation a more sensible choice for some, avoiding the need to quit Europe entirely but rather postpone.
Global Jitters: Concerns Beyond the Economy
It isn’t just economic factors or tariffs swaying travel choices. More than half (53%) of Americans express concern about flying internationally due to political hostility. This is a significant worry that can make a dream international trip feel stressful rather than relaxing, and it’s a topic often appearing on social media feeds, further amplifying anxieties. The political climate in various parts of the world weighs on people’s minds when considering travel plans.
Beyond general hostility, there’s a more personal concern regarding travel safety. A striking 62% worry about the treatment they might receive abroad specifically because they are American. This feeling can definitely take the shine off exploring new cultures for American tourists. It’s led to some unease, with 27% of Americans admitting they’ve felt uncomfortable stating their nationality while overseas.
This discomfort is particularly acute for younger travelers. About 30% of Gen Zers have gone as far as pretending to be from a different country while traveling internationally. This is a stark contrast to older generations; the vast majority of baby boomers, 97% of them, say they have never hidden their American heritage abroad. This generational divide in how one navigates international identity is quite telling and highlights different approaches to international travel.
Additionally, cyber security has become a growing concern for international travelers. Using unfamiliar Wi-Fi networks or accessing sensitive information like an account log for banking while abroad can expose individuals to risks. Travelers are becoming more aware of protecting their digital footprint, which adds another layer of planning and caution, sometimes discussed by Business Insider subscribers who follow tech and security news.
Despite these concerns, Americans do travel internationally. The survey showed that 28% typically travel abroad at least once a year. Another 14% do so every two to five years. But even these frequent international travelers are indicating a shift, as some insider reports from the travel industry suggest. For example, 75% of those who normally travel internationally multiple times a year say they are likely to stay closer to home for now. Similar sentiments were shared by those who travel internationally once a year (67%) or every two to three years (70%), indicating a broad impact on patterns of international trips.
Rethinking Your Trip? Smart Ways to Adjust (Not Just Cancel)
If financial worries or other concerns have you second-guessing your travel plans, canceling might seem like the obvious step. But Schulz warns this could be costly, potentially impacting your personal finance goals negatively. “You may not always be able to get your money back for something you’d already arranged,” he points out. Depending on your trip’s specifics, you could lose significant money on deposits or non-refundable bookings.
But don’t despair. There are strategies you can use to limit losses if you decide to change or postpone your plans. Thinking creatively can help you salvage a getaway or at least minimize financial hits. Here are some smart approaches to consider for your next vacation, whether it’s for summer travel or a winter escape.
First, always read the cancellation fine print before you book, especially with those cheaper rates; this includes checking the privacy policy of booking sites. “It can be tempting to go for the noncancelable rate to save money,” Schulz admits. “However, there’s a risk.” Ask yourself if you are comfortable with that risk, especially with current economic uncertainty. If not, spending a little extra for more flexibility, perhaps a fare that allows you to cancel anytime with minimal penalty, might be the best move in the long run.
Next, if you booked with a travel credit card, investigate your benefits. “Most people don’t know much about the great perks their credit cards offer, and travel insurance is a perfect example,” Schulz says. Policies can vary a lot, from trip cancellation and interruption coverage to lost luggage and emergency medical benefits. So, it’s important to read the details or call your credit card company to ask for specifics. Using this insurance wisely can save you real money and big headaches if your travel plans go awry.
Consider if scaling back, rather than completely canceling, might help you save money. Taking just a day or two off your planned trip could make it more affordable. This works best if you can change hotel or flight bookings without too many fees. Other ways to save include staying with family members or friends for a night or two. Driving instead of flying, if feasible, can also cut costs, especially for domestic trips. Even downgrading your accommodations from luxury to something more modest can make a difference without sacrificing the entire experience.
Look into switching your travel dates. “The difference in travel cost and availability in peak season versus off-peak times can be night and day,” Schulz highlights. This shift can sometimes make a dream vacation possible on a tighter budget. Of course, consider all factors. Off-peak might mean risking less ideal weather, so think about the big picture and what trade-offs you’re willing to make for your international travel or local getaway. Airlines like Southwest Airlines sometimes offer more flexibility or better deals during shoulder seasons.
Finally, lean on any credit card rewards you’ve accumulated. If you have points or miles to redeem, now could be a great time to use them, especially if you need to check a currency converter for international redemptions. Schulz says this can be a fantastic way to offset some expenses. “The best-case scenario would involve free hotel nights and airfares, upgraded rooms, priority boarding, complimentary breakfasts and other such perks,” he notes. Even if you don’t get all those benefits, every little bit helps. For instance, getting 1% or 2% back on everything with a cash back card can extend your budget. Extra rewards at gas stations can make a family road trip more affordable. It’s all about finding the right travel card to match your needs and spending habits; many innovative stories on Business Insider detail how to maximize these perks. When booking online, be mindful of how sites manage cookies to get the best deals and protect your information. Some people even copy link of deals to share on Facebook or email them to friends, fostering a community approach to finding travel bargains.
These adjustments can make travel possible even when times feel tight. Being flexible and resourceful can open up surprising opportunities for adventure. It’s worth taking the time to explore these options before giving up on your travel dreams entirely; perhaps start reading more about budget travel techniques or insights from insider tells from seasoned travelers.
Survey Methodology: LendingTree commissioned QuestionPro to conduct an online travel survey of 2,000 U.S. consumers ages 18 to 79 from May 1 to 6, 2025. The survey was administered using a nonprobability-based sample. Quotas were used to make sure the sample base represented the overall population. Researchers reviewed all responses for quality control. We defined generations as the following ages in 2025: Generation Z (18 to 28), Millennial (29 to 44), Generation X (45 to 60), and Baby Boomer (61 to 79). This methodology is similar to what a Deloitte survey might employ for consumer confidence studies.
Conclusion
The current economic landscape clearly has many rethinking their travel dreams. From rising cost concerns fueled by economic uncertainty to global jitters affecting international travel, it’s understandable why a trend of Americans cutting back on travel is emerging. The data shows people are taking fewer trips, changing destinations to more affordable domestic trips, and some are postponing their travel plans altogether, sometimes waiting longer to see if the job market or stock market stabilizes.
This isn’t just about missing out on a vacation; it’s about making thoughtful personal finance choices in an unpredictable world. However, these adjustments don’t mean an end to exploration. As insider tells often highlight, adapting is key. For American tourists, especially those who are insider subscribers to travel forums looking for financial strategies, the focus shifts to smarter travel.
By using credit cards wisely for rewards and travel insurance, being flexible with dates and destinations, and exploring options to save money, memorable experiences are still within reach. Being an informed traveler means you can still explore possibilities, perhaps just a bit differently than before, and make the most of your travel budget. The travel industry itself is also adapting, offering different types of packages and deals to cater to this cautious consumer.
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