Despite stable financial sentiment among American travelers, economic uncertainty and a federal government shutdown are influencing cautious travel spending and planning, with a strong interest in major upcoming events like America 250 and the 2026 FIFA World Cup.
Current Financial Sentiment and Recession Concerns
As of November 2025, American travelers maintain a steady financial outlook despite ongoing economic uncertainties, including a federal government shutdown. Approximately 32.3% of travelers report being financially better off than a year ago, a slight decrease from the previous month but consistent with the same period last year. Furthermore, nearly half (46.9%) of travelers anticipate improved household finances over the next 12 months, reflecting a minor increase from October. However, recession concerns persist, with 48.5% expecting an economic downturn within six months, a significant increase from the previous year.
Travel Spending and Budget Priorities
While financial sentiment remains stable, concerns about a potential recession and government disruptions are subtly impacting travelers’ willingness to spend on travel. Only 32.8% of Americans currently consider it a good time for travel spending, marking a decline that has been observed since June. Despite this caution, travel remains a high budget priority for over half (56.4%) of travelers, with average annual travel budgets holding steady at $5,973. This indicates that while Americans are cautious about timing and value, they are not abandoning travel spending altogether.
Travel Activity and Planning Trends
Following a summer peak, leisure travel saw a slight decrease in October, with 48.2% of Americans taking an overnight leisure trip. Day trips remain a popular activity, with 52.2% of Americans engaging in such pursuits. Looking ahead, 91.8% of travelers plan to take at least one leisure trip in the coming year, averaging 3.8 trips per person. Higher-income travelers anticipate more frequent travel, while younger generations, such as Gen Z, plan fewer trips compared to older demographics.
Holiday Travel Outlook
As the holiday season approaches, 54.0% of Americans have yet to finalize their travel plans. Among those with plans, Christmas is the most popular holiday for travel (31.5%), followed by Thanksgiving (24.6%) and New Year’s (14.1%). Demographic differences are evident, with parents and Millennials more likely to travel for Thanksgiving and Christmas, while Southerners lead in regional travel plans. The ongoing government shutdown and economic uncertainty may be causing travelers to delay finalizing plans, although spontaneous decisions are expected as the holidays near.
Looking Ahead to 2026: America 250 and FIFA World Cup
Despite short-term caution, American travelers show strong interest in major upcoming events. Over half (51.0%) express interest in traveling for America 250, the celebration of the United States’ 250th Anniversary of Independence in 2026. Interest is particularly high among parents, Millennials, and middle-income households. Similarly, 30.0% are interested in the 2026 FIFA World Cup, with enthusiasm higher among parents, Gen Z, and Millennials. These findings suggest that while travelers are cautious in the short term, there is significant ambition for marquee events, providing opportunities for destinations to cultivate interest in the years to come.
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