Key facts
- Airfares have risen 27% year-over-year.
- 65% of Americans have altered summer travel plans due to increased costs.
- 31% have changed destinations or canceled vacations.
- Travelers expect to spend an average of $4,069 on their longest summer trip, a 17% increase from last year.
- Younger travelers are planning to spend more and travel more often.
Americans are facing significantly higher costs for summer travel, with airfares up 27% year-over-year. This surge in prices, coupled with economic uncertainty and geopolitical disruptions, is forcing many to alter their vacation plans. A survey by Deloitte indicates that 65% of Americans have already modified their summer travel arrangements, with 31% changing destinations or canceling trips altogether.
Despite the increased costs, those who are still planning to travel are prepared to spend more. The average expected expenditure for the longest summer trip is $4,069, a 17% increase from the previous year. Travelers are absorbing these higher costs without significantly compromising their desired experiences, with younger demographics, Gen Z and millennials, showing a greater willingness to spend more and travel more frequently.
Some travelers are opting for more budget-friendly alternatives, such as domestic road trips or closer-to-home destinations, instead of ambitious international itineraries. For instance, one family shifted from a planned Disney World trip to a road trip to the Smoky Mountains, saving thousands of dollars. This trend reflects a more 'calculated traveler' who prioritizes value and ease.
Concerns about travel disruptions, including flight path uncertainties and airline operational issues, also contribute to altered plans. While the number of Americans planning to travel and stay in paid lodging is at a six-year low (45%), those committed to traveling are digging deeper into their pockets to fund their experiences.