As the winter holidays approach, Americans appear eager to travel again, but not to splurge. A new Deloitte survey finds more people are planning to hit the road or skies this season, yet most are budgeting less than they did a year ago.
According to the firm’s 2025 Holiday Travel Survey, 54 percent of respondents intend to travel between Thanksgiving and mid-January, up five points from 2024. At the same time, their average planned travel budget has fallen 18 percent, to $2,334.
“Many Americans are planning fewer flights and hotel stays, with tighter wallets in tow,” said Kate Ferrara, vice chair and U.S. transportation, hospitality, and services sector leader at Deloitte LLP.
“Although our survey found that more consumers plan to travel to be with loved ones, they are hesitant to spend on extending and upgrading their trips. This is expected to leave many travel providers bracing for a softer winter.”
Fewer Trips, Smaller Budgets
Deloitte surveyed 3,896 Americans in September, of whom 2,099 plan to travel this holiday season. Those travellers expect to take an average of 1.83 trips, down from 2.14 in 2024. High-income respondents, households earning $100,000 or more, are showing the steepest pullback. They intend to reduce their trips from 2.5 to 1.9 on average, and 16 percent plan to shrink the budget for their longest trip, up from 11 percent last year.
“Inflation may be easing, but cost sensitivity hasn’t disappeared,” said Mike Daher, vice chair and U.S. transportation, hospitality, and services leader at Deloitte LLP. “Many consumers feel their money simply doesn’t go as far as it did a few years ago, and that shapes everything from destination choice to how long they stay.”
Even among those who can afford it, the mood is subdued. Nearly a third of respondents said their household finances are worse than a year ago, and almost one in five high-income households reported the same, a notable rise from 2024.
Generational Shifts
The survey underscores a growing generational divide in spending. While baby boomers expect to increase their holiday-travel budgets slightly—up 4 percent year over year—younger generations are scaling back. Gen Z travellers plan to cut their travel budgets by roughly 31 percent, while millennials plan to cut theirs by 7 percent.
Yet younger generations will dominate the skies and roads. Together, Gen Z and millennials are expected to make up half of all holiday travellers for the first time. That creates both opportunity and challenge for the industry: younger travellers prioritize affordability, convenience, and experience over premium perks.
“Travel remains important to younger Americans,” Ferrara noted. “But they are pragmatic. They’re embracing tools like AI trip-planning, searching harder for deals, and prioritizing fewer, more meaningful journeys.”
Flying Less, Driving More
The shift toward thrift extends to transportation. Just 47 percent of travellers plan to fly on their longest trip this holiday season, down from 55 percent last year. Among high-income travellers, only 53 percent plan to fly, compared with 63 percent in 2024.
Instead, the road trip is roaring back. Fifty-seven percent of those planning to drive instead of fly cited saving money as the main reason, up from 47 percent last year.
Accommodations show a similar pattern. Price is now the dominant factor in hotel choice, with 63 percent of respondents ranking cost among their top three considerations. Middle and high-income travellers are also planning fewer hotel nights overall.
Tech and the Luxury Niche
Despite leaner budgets, tech use continues to surge. Nearly a quarter (24 percent) of respondents plan to use generative-AI tools for trip planning this year, triple the share from two years ago. Adoption is highest among millennials (31 percent) and Gen Z (30 percent), Deloitte found.
“Consumers are turning to generative AI to find inspiration, compare options, and uncover better value,” Daher said. “That’s an important signal for travel providers looking to meet customers where they are—online and increasingly AI-assisted.”
Meanwhile, a distinct slice of travellers remains loyal to luxury. About 26 percent of respondents qualify as “luxury travellers,” defined by Deloitte as those who have stayed at a hotel they consider luxury, typically $400 a night or more, at least twice in the past two years. Gen Z luxury travellers tend to prize amenities; millennials focus on dining and atmosphere; boomers value destination and service.
The Outlook
As Ferrara sees it, 2025’s holiday travel landscape is “a story of strong desire but softer spending.” While enthusiasm for travel persists, Americans are approaching it more cautiously, trading extra nights and upgrades for smaller, value-driven itineraries.
“Travel providers should prepare for volume without the same lift in revenue,” Ferrara added. “Consumers are seeking connection and experiences, but they’re doing it with a close eye on cost.”
For travellers, the message may be to choose quality over quantity: one memorable trip, not three forgettable ones. Expect the highways to hum and airport lines to stay busy, but expect wallets to stay a little tighter.
In other words, this holiday season may prove that Americans are still on the move, just a little more mindful of the costs.