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Image Credit Bank of America
Bank of America’s 2025 Consumer Spending and Saving Behaviors: Summer Travel and Entertainment Outlook reveals that during the summer of 2025, Americans show a significant inclination towards travel and entertainment despite varying economic pressures.
Travel Trends: Domestic and International Preferences
A substantial 74% of Americans are gearing up for summer travel, with 38% having already finalized their plans. Domestic travel continues to dominate preferences, with 70% planning to explore within the U.S., showing a slight increase from the previous year. This includes 52% traveling to states other than their own and 25% exploring within their home state. Internationally, North America outside the U.S., Europe, and Asia are the top destinations, attracting 19%, 14%, and 9% of travelers, respectively.
Emergence of Destination Dupes
The concept of “destination dupes” — less-known and more budget-friendly locations — is gaining traction, with 92% of travelers open to this option. Millennials are particularly enthusiastic, with 62% favoring these alternatives over more popular destinations. The motivations for choosing lesser-known places include a desire for a relaxed vacation (53%), authentic local experiences (49%), and avoidance of crowded tourist spots (48%).
Payment Preferences for Travel
When it comes to financing their travel, 47% of respondents prefer using credit cards, primarily due to the rewards such as cashback (61%), points (19%), and miles (12%). This preference underscores the importance of the financial benefits associated with credit card usage during travel.
The Revival of American Road Trips
Despite a slight decline in air travel spending, road trips are experiencing a resurgence, with 63% of travelers choosing to drive. The appeal of road trips lies in the enjoyment of the journey itself (41%), cost-effectiveness (40%), and the flexibility to explore at one’s own pace (40%).
Spending on Entertainment: Live Events and Streaming
Americans continue to invest in entertainment, with theme parks, live music, and merchandise being the top spending categories. The role of streaming, especially for sports, is significant, with 55% of Americans subscribing to services for sports events. This trend is particularly strong among younger generations, with Gen Z and Millennials leading the charge.
Wedding Season Economics
The cost of participating in wedding festivities is also a critical consideration, with 54% of Americans willing to decline wedding invitations if costs are too high. On average, guests spend about $700 per wedding, excluding travel. To manage expenses, 21% of couples would consider eloping, and others are looking at various ways to reduce costs, such as opting for less expensive venues or inviting fewer guests.
Conclusion
The summer of 2025 reflects a dynamic shift in consumer spending and saving behaviors, focusing on value-driven travel and entertainment choices. As Americans navigate their leisure options, financial considerations are pivotal in shaping their decisions, from choosing less crowded and cheaper travel destinations to managing the high costs associated with wedding season.
View the 2025 Consumer Spending and Saving Behaviors: Summer Travel and Entertainment Outlook.
