Despite a rise in holiday travel plans among Americans, financial concerns are prompting a reduction in travel spending, according to Deloitte’s 2025 Holiday Travel Survey.
Deloitte’s 2025 Holiday Travel Survey reveals a significant shift in travel behavior among Americans. While the intent to travel during the holiday season has increased, with 54% of respondents planning trips between Thanksgiving and mid-January, financial constraints are influencing these plans. The average budget for holiday travel has decreased by 18% from the previous year, settling at $2,334. This reduction in spending is evident across various demographics, with nearly one in five high-income travelers reporting a worse financial situation compared to last year.
Generational Shifts and Spending Patterns
The survey highlights notable generational differences in travel spending. Gen Z and millennials, who for the first time make up half of the holiday traveling public, are showing the most significant cutbacks, with Gen Z reducing their travel budgets by 31% year-over-year. In contrast, Baby Boomers are the only group planning to increase their travel spending, albeit modestly by 4%. The overall trend indicates a cautious approach to travel expenditures across most age groups.
Impact on Travel Providers
Travel providers are likely to face challenges due to cautious spending behavior. The survey indicates a decrease in the number of trips and a shift towards more budget-conscious decisions, such as driving instead of flying. Only 47% of travelers plan to take a flight for their longest trip of the season, a drop from 55% in 2024. Additionally, high-income travelers are significantly reducing their budgets for in-destination spending and opting for less luxurious accommodations.
Adoption of Generative AI in Travel Planning
An emerging trend from the survey is the increased use of Generative AI (GenAI) in travel planning. Approximately 24% of respondents intend to use GenAI for organizing their trips, a notable increase from previous years. This technology is particularly popular for researching activities, destinations, and accommodations, helping travelers make more informed decisions that align with their budgets.
Conclusion
The findings of Deloitte’s 2025 Holiday Travel Survey underscore a complex landscape for the travel industry. While more Americans are planning to travel, their spending habits are more conservative than in previous years, influenced by broader economic concerns. Travel providers and hospitality businesses will need to adapt to these changing consumer behaviors to navigate the potentially slower holiday season effectively.
Access the complete 2025 Deloitte Holiday Travel Survey.
