Photo credit: www.cnbc.com
According to a recent survey conducted by Bankrate, fewer Americans are preparing for summer travel this year. The data reveals that only 46% of participants plan to take a vacation, a noticeable decrease from 53% in 2024. Among those who are opting out of travel, a significant 65% cite financial constraints as their primary obstacle.
Interestingly, the survey highlights that day-to-day living expenses pose a greater challenge for potential travelers, with 68% of respondents indicating this concern, compared to 64% who pointed to vacation costs specifically. Furthermore, the proportion of individuals who are undecided about their summer plans has risen, from 18% in 2024 to 23% in 2025.
Ted Rossman, a senior industry analyst at Bankrate, noted that rising tariffs and concerns about a looming recession are contributing to a more cautious approach to summer travel. “We’re witnessing an increase in layoffs and a potential rise in prices, which leaves many people feeling uneasy,” he stated, referencing a decline in consumer confidence observed in recent weeks.
On a more positive note, the percentage of people definitively ruling out summer travel has decreased from 29% last year to 24% this year. Additionally, fewer individuals (29%, down from 36%) report intending to leverage credit to finance their summer trips.
The survey, which included responses from 2,238 adults, was conducted in mid-March.
Other reasons people are staying home
Slow start to the year
In line with these findings, Bank of America’s March report indicates that domestic spending on travel-related expenses such as accommodations, flights, and recreational activities has experienced a sluggish onset this year. The report suggested that decreased consumer confidence might be causing people to hesitate in booking trips or opting to scale back their travel plans. Furthermore, adverse weather conditions in certain regions could have dampened spending, and a later Easter holiday may have shifted some travel-related expenditures from March into April.
The report also observes that lower-income households are reducing their travel budgets the most, while affluent travelers are increasingly focusing their spending on international trips.
The travel and tourism sector significantly contributes to the U.S. economy, accounting for roughly 3% of the gross domestic product (GDP) and employing around 6.5 million individuals as of 2023, as noted by the Bureau of Economic Analysis’ Travel and Tourism Satellite Accounts.
Spending still higher than 2019
Despite the current hesitancy, the report states that domestic spending on travel services is still above pre-pandemic levels of 2019. Rossman remarked that although consumer sentiment is lower, many people remain optimistic about traveling this summer. “Airlines are signaling reduced demand and profits, and there are concerns regarding international visitors coming to the U.S. due to political issues,” he explained. “Even with the prevailing uncertainties, travel continues to be a priority for many.”
Source
www.cnbc.com