Half of Americans say the memories made during vacation are priceless, yet 1 in 3 plan to cut back spending on travel

June 12, 2025 at 10:01 AM EDT

(BPT) - About half of Americans (44%) say the memories they make when vacationing are priceless, yet economic pressures are reshaping how they approach travel. New Empower research shows that many plan to cut back on travel spending in 2025, embracing "staycations" and using cost-saving strategies to stay under budget in the face of changing economic market conditions.

One in 5 (20%) say they prioritize travel regardless of what's going on in the economy, while a quarter (24%) prefer to see travel as an investment in themselves rather than focusing on how much it costs. On average, Americans expect to spend approximately $10,600 on trips and vacations in 2025.

Key takeaways

Nearly half of Americans (47%) say the increased cost of living, economy (44%), and tariffs (30%) are impacting their 2025 travel plans.
Around a third (32%) plan to spend less on travel this year than they did last year, compared to 18% who expect to spend more.
Nearly a third (29%) of people will take staycations or day trips instead of domestic or international travel this year.
38% of travelers think staying under budget is very important when vacationing, but only 28% actually set a budget.
Gen Z is around twice as likely to say they'll be traveling more in 2025 than other generations (23% compared to 13%).
Over half of Americans (52%) have used or will use AI to plan or enhance their travel this year, such as getting real-time recommendations for restaurants or attraction suggestions.

Americans are spending less on travel this year

Around 1 in 3 people (32%) expect to spend less on travel this year than they did last year, compared to 18% who expect to spend more. Those cutting back say their travel plans are being impacted by increased costs of living (47%), the overall state of the economy (44%), hotel prices (38%), and even tariffs (30%).

In total, only 15% of people are planning more trips than they did in 2024, and another 12% aren't planning to travel at all. Additionally, over a quarter of Americans (27%) say they won't travel by plane this year in order to save money, despite flight prices being down 8% compared to April 2024.

This doesn't mean Americans are skipping vacations this year. Nearly 30% will be taking a staycation instead of booking domestic or international travel. Others (24%) state they're willing to cut back on expenses to fund their travel plans, while 1 in 5 (20%) say they prioritize travel regardless of what's going on in the economy.

Cost-saving is key for most travelers

When Americans do travel, the majority (82%) make use of cost-saving strategies like picking budget-friendly destinations (45%), opting for free activities and attractions (37%), or staying in less expensive lodging like hostels or shared homes (35%).

Others say they're willing to travel during the off-season (32%) and cook their own meals while vacationing (30%). One in 5 (20%) say they'd flex their trip destination or timing to get cheaper plane fares, and 18% use AI to help them find budget-friendly flights, accommodations, or activities.

Overall, 38% of people think staying under budget is very important when traveling, but only 28% set actual limits on how much they can spend during a trip.

For many, traveling is worth any expense

Despite cutting back on vacation spending this year, many Americans believe travel is important, no matter how expensive. Close to half (44%) say the memories they make while traveling are priceless, while a quarter (24%) prefer to see travel as an investment in themselves rather than focusing on how much it costs. On average, Americans expect to spend approximately $10,600 on trips and vacations in 2025.

Some Americans (26%) have gone into debt to fund vacations or holiday travel, and others (13%) have dipped into their retirement savings to pay for trips. These approaches aren't the norm, however, as Americans typically plan to pay for travel in full using personal savings (41%).

Other popular ways of funding travel include credit card rewards and points (25%) and side hustle earnings (20%). A smaller number are willing to create travel savings funds and postpone their trips until next year (15%). Another 13% say they're holding off on big travel plans until they retire, but nearly twice as many (22%) prioritize traveling now.

Travel spending habits

A third of Americans (33%) pay only for their own expenses when they travel. Others cover travel costs for their partners (27%) or multiple family and group members (21%). Only 1 in 10 people primarily travel on someone else's dime.

Comparing age groups, Gen Z is most likely to have their travel funded by somebody else, but 85% still cover some or all of their trip expenses. Gen Z is also around twice as likely to say they'll be traveling more in 2025 than other generations (23% compared to 13%).

Some 37% of people say they feel pressured to go outside their budget to travel with friends or attend bachelor or bachelorette trips - and this number is higher for Millennials (52%) and Gen Zers (47%) compared to Gen Xers (36%) and Baby Boomers (9%). Across all age groups, Gen Z (14%) is most likely to admit to taking trips they can't afford, though Gen X (12%) isn't far behind.

More key findings from the study:

Rising costs: Americans say high hotel costs (38%), gas prices (34%), and airline fares (33%) are impacting their travel plans this year.
AI travel partners: Over half of Americans (52%) have used or will use AI to plan or enhance their travel in 2025. The most popular use of AI when traveling is to get real-time recommendations like restaurant or attraction suggestions.
AI adoption: 65% of Gen Zers and Millennials use AI to enhance their travel, compared to only 29% of Baby Boomers and 52% of Gen Xers.
Cashing in on refunds: 1 in 10 Americans plan to use their tax refunds to fund travel this year.
Travel debts: Gen Xers (19%) and Millennials (17%) are nearly twice as likely to say they've gone into debt to travel than Gen Z (9%) or Baby Boomers (10%).

Methodology

Empower's "Priceless Memories: Travel Spending Trends" survey is based on an online survey of 1,031 adults ages 18+ through a third-party provider on May 17, 2025.

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Half of Americans say the memories made during vacation are priceless, yet 1 in 3 plan to cut back spending on travel

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