American Travel Industry Sees Buoyant Outlook for 2025 according to Future Partners

The American travel industry is poised for a strong start in 2025, as data indicates travelers remain confident about their financial wellness, thereby boosting the outlook for travel spending. Notably, Buy Now Pay Later (BNPL) options, school holidays, and expectations for AI are emerging trends that could influence travel buying behaviors.

A recent independent research study by Future Partners, which surveyed 4,000 American travelers in December 2024, revealed that 31.7% of respondents felt their household was in a better financial position compared to the previous year. This is a 2.4 percentage-point increase over the previous month and mirrors the figure from the year prior.

The survey also found that 49.1% expect their household’s financial wellness to remain stable in the coming year. This, combined with a low anticipation of an economic recession (at 35.3%), suggests a stable financial confidence among American travelers entering 2025.

In terms of travel spending, 36.9% of American travelers believe now is a good time to spend on travel, the highest since February 2022. Additionally, 58.2% say travel will be a high-budget priority for them in the next three months. An upward trend in the annual leisure travel budget was also noted, with the average forecasted at $5,898. The number of leisure trips the average American traveler takes is projected to rise from 3.5 to 3.9 in 2025.

The study also examined emerging trends that could affect travel planning and budgeting. The adoption of BNPL payment plans is expected to rise in 2025, with 21.2% of American travelers indicating they are likely to use this method to finance their trips. This trend is primarily driven by younger generations, with 45.0% of Gen Z and 33.2% of Millennials likely to use BNPL.

The survey also found that school holidays heavily influence when families schedule vacations, with 57.9% of parents stating school holidays dictate their travel plans. Factors such as flexible work schedules (57.2%), supportive school policies (41.2%), technology for remote learning (36.9%), and lower travel costs during off-peak seasons (34.4%) also play a role in scheduling flexibility.

Furthermore, 62% of American travelers believe the use of AI tools like ChatGPT and Gemini for travel planning will become more popular in 2025. However, deliberate usage of these tools currently remains at 14.2%, suggesting that the benefits of AI tools need to be better communicated.

Political factors also influence travel behavior, with 52.3% of American travelers suggesting that personal politics might influence destination choices, although this figure has dropped by 4 percentage points from last year.

In summary, the American travel industry is entering 2025 on a positive note, with stable financial confidence among travelers and emerging trends shaping travel buying behaviors.