Summer Travel Slump: Rising Costs Cut Vacation Plans to Six-Year Low
Event summary
- 45% of Americans plan summer travel with paid lodging, the lowest figure in six years.
- Travelers expect to spend an average of $4,069 on their longest summer trip, up 17% from 2025.
- One-third of travelers plan to work during their longest summer trip, up from 23% in 2025.
- Millennials and Gen Z are driving demand for luxury travel and tech-driven itinerary planning.
The big picture
Deloitte's survey highlights a paradox in the travel industry: while overall travel incidence is down due to cost pressures, those who do travel are spending more on premium experiences. This trend is particularly driven by younger generations, who are leveraging technology and prioritizing luxury. The industry must adapt to these shifting demographics and pricing sensitivities to maintain growth.
What we're watching
- Cost Sensitivity
- How rising travel costs will affect booking patterns and loyalty program engagement.
- Demographic Influence
- Whether younger generations' preference for luxury and tech-driven planning will reshape the travel industry.
- Seasonal Shifts
- The pace at which post-Labor Day travel demand increases as summer prices peak.