Travelers may have finally had enough.
With revenge trips over and pandemic savings depleted, travelers say they’re planning fewer trips this summer or skipping vacations altogether.
“After two straight years of strong gains, the number of Americans planning to take leisure trips is falling,” reports a summer travel report by Deloitte Insights.
The close of the second quarter earnings season showed that majors such as Marriott, Hyatt, Wyndham, Airbnb and Expedia they expect a weakening of travel demand this year as well.
“Too expensive” to travel now
Americans are planning 2.3 trips this summer, up from 3.1 trips from the summer of 2023, according to a Deloitte survey of more than 4,000 people.
The number of people who said they avoid summer travel altogether rose from 37% to 42%, the report showed. When asked why they stay home, nearly a third of respondents said “travel is too expensive right now” — a jump of eight percentage points from 2023, according to Deloitte.
About 14% of respondents who plan to travel said they plan to spend less, with shorter trips cited as the most popular way to do so.
However, another 19% said they plan to spend more (up from 25% in 2023). However, this is not necessarily because they want to, but more because they feel they have to.
“The most cited reason for the increase in spending is rising prices rather than more ambitious travel,” the report said.
Younger people withdraw from “fun”
Average spending on discretionary goods and services — such as travel, clothing and home furnishings — fell across the board this summer, said Sofia Baig, economist at information firm Morning Consult.
The biggest cuts are in entertainment spending among Gen Zs and millennials, a category that includes concerts and sporting events, according to July report from Morning Consult.
These generations are spending less on airfare and hotel accommodations, Baig said, suggesting that a cut in travel spending may be a normalization of the market. after the end of the journey of revenge.
“Younger adults have shrunk their share of the budget for ‘entertainment,'” according to the report, which showed they continue to pay for items such as personal care products, dining out and alcohol.
Gen Zs exploded onto the travel scene, with the oldest members coming of age around the same time that Covid-related travel restrictions began to end.
To the dismay of older travelers, a lack of funds hasn’t hindered their travel ambitions, as social media and a growing pool of travel influencers have spurred trips that previous generations typically put off for years.
The role of travel in the lives of younger people is also different. Younger travelers are more apt to see travel as an essential part of their mental health rather than a discretionary extravagance.
While their parents saved for wedding rings, houses and a nest egg to cover six months of expenses in their 20s, Gen Z’s mindset is still more about seizing the day, rather than saving for a rainy day.
But there is a limit to this mentality, Baig said.
“While travel may be ‘fundamental to their well-being,’ it’s not really necessary like paying rent or buying groceries,” she said.
However, they are “putting their money where their mouth is,” he said, “allocating a larger share of their budget to travel than older generations.”
An April report published by travel company Hopper found that Gen Zs who earn less than $50,000 a year spend up to 49% more on travel than older adults who earn the same amount.
