Despite Inflation, Americans Adjusting Rather than Cancelling Travel Plans, New Study Reveals

Despite economic pressures, most Americans are maintaining their travel plans, albeit with some adjustments, according to a recent survey by Squaremouth.

Amidst mounting inflation and economic uncertainty, American travelers seem undeterred, continuing to prioritize their vacations. A recent survey conducted by Squaremouth found that the current economic climate has not impacted the travel spending of 65% of the over 2,000 travelers surveyed. Nonetheless, the remaining 35% who are tightening their budgets are not cancelling their trips but adjusting their travel arrangements.

Instead of halting their travel plans, many are exploring more affordable destinations. The survey revealed that 38% consider less-expensive countries such as Poland, Finland, and Austria. Meanwhile, 26% have elected to stay within the U.S., avoiding overseas travel. Only 17% have decided to shorten their vacations due to budget constraints.

Squaremouth’s earlier report highlighted a 38% year-over-year increase in summer travel costs, pushing the average cost of an international trip above $10,000. Despite this, 77% of travelers are more or equally concerned with protecting their trip investments compared to previous years.

The survey also provided some tips for future travel, including purchasing travel insurance early and choosing the most affordable policy. It also advised against overinsuring trips, suggesting travelers should only insure the expenses they would lose in case of cancellation.

Squaremouth’s survey was conducted between April 14 and 23, 2025, polling more than 2,000 customers about their travel plans for the year 2025.

Notably, even with economic pressures and rising costs, the desire to travel remains strong among Americans, with many making adjustments to ensure their vacations can still take place.