Fewer Americans are planning summer vacations. Travel costs aren't the top reason

CNBC

24-04-2025

Fewer Americans are planning to travel this summer, according to a survey by the consumer finance company Bankrate.
Some 46% of respondents said they are planning a summer vacation this year — down from 53% in 2024. Of those who don't intend to travel, nearly two-thirds (65%) said money was the main reason.
However, it's not just travel costs that are keeping people from planning trips — more respondents said the cost of everyday life (68%) was a bigger issue than vacation expenses (64%).
Additionally, the number of those who said they were "not sure" about their summer vacation plans increased — from 18% in 2024 to 23% in 2025.
Recent tariffs and fears of a possible recession are causing more travelers to take a wait-and-see approach to summer holidays, said Ted Rossman, a senior industry analyst at Bankrate.
"We're seeing more layoffs and the potential for higher prices, which has many people on edge," he told CNBC Travel, citing a drop in consumer sentiment in recent weeks.
However, the number of people who said they weren't planning a summer trip also fell — from 29% in 2024 to 24% in 2025. The survey showed that those planning to use debt to finance their summer holidays decreased from 36% to 29% too.
The survey of 2,238 adults was conducted in mid-March.
Some 23% of respondents said they aren't interested in traveling, mirroring the results of last year's summer survey from Bankrate.
However, more cited the hassle of traveling (from 11% in 2024 to 16% in 2025) and difficulty finding time off from work (from 10% to 16%), the latter perhaps reflecting corporate America's continued push to bring remote workers back to the office.
The survey also showed 15% of respondents said they were worried about flight safety. That comes on the heels of several high-profile aviation incidents in the United States — including a midair collision between an American Airlines jetliner and a military helicopter — as well as lingering quality control issues at Boeing.
Domestic spending for lodging, flights and tourism activities is off to a slower start in the United States this year, according to a March report from Bank of America.
"It could be that the recent drop in consumer confidence is translating into people hesitating to book trips, or considering paring them back," the report states.
It also noted that bad weather spells in parts of the country could have curtailed travel spending, while a later Easter holiday may have pushed some spending — which typically occurs in March — to April.
Lower-income households are cutting their travel spending the most, while wealthier travelers may be choosing to spend more money abroad, the report states.
The travel and tourism sector makes up around 3% of U.S. gross domestic product and employed around 6.5 million people in 2023, it states, citing the Bureau of Economic Analysis' Travel and Tourism Satellite Accounts.
The U.S. tourism industry is unlikely to get a boost from international travelers, as data shows waning foreign interest in visiting the United States in light of President Donald Trump's trade policies and foreigner detentions at border crossings.
Several U.S. airlines, including Delta and United Airlines, have projected weaker outlooks for 2025, given expected dips in travel demand, leading to a scaling back of flights and expansion.
Still, domestic spending on hotels, flights and tourism-related activities is higher than 2019 levels, according to the Bank of America report.
Rossman added that despite lower consumer sentiment, many people are still planning to travel this summer.
"Airlines are warning about lower demand and lower profits, and we're hearing some concerns from potential international visitors to the U.S. because of political reasons," said Rossman. "Despite the gloomy mood, we're still seeing a lot of travel."