Americans are traveling less this summer than in years past as consumers continue to struggle with rising costs.
Some 45 percent of Americans plan to take a domestic or international summer vacation with paid lodging this year, marking the lowest level in six years, according to a May study from research firm Deloitte.
“General affordability is a major concern among non-travelers, and a growing number of those staying home specifically highlight the high cost of travel,” the study said.
Households earning less than $100,000 plan to cut back on travel at twice the rate of households earning $100,000 or more, the study noted.
The travel disparity between households earning more and less than $100,000 highlights the struggles that lower-income homes face as inflation sits at a four-year high.
Summer travel has dropped nearly 20 percentage points from 2023 to 2026, flipping the travel majority from households earning under $100,000 to those earning above $100,000.
For half of those households, travel is “one of the first things” they cut from their spending, the Deloitte study found. Some 35 percent say that higher day-to-day expenses are either completely preventing travel or significantly impacting it.
Regardless of income, 35 percent of those staying home this summer say they aren’t traveling because of high costs, according to an April study from travel insurance marketplace Squaremouth.
A significant boost in gas prices amid the war in Iran and overall inflation has made travel more expensive, Squaremouth noted.
Those who choose to travel are doing so at an unprecedented cost. Through March, travelers spent an average of $7,250, the highest recorded spend in Squaremouth’s 23-year history.
That trend is carrying over into summer travel. Trip budgets are up 17 percent year-on-year, Deloitte found. Households earning $100,000 to $199,000 saw a 24 percent jump in their spend, the highest of all income categories.
“Beyond the dip in overall travel [plans], there are few concerning signals for travel providers in the upcoming summer season,” the Deloitte study said. “Travelers are not shying away from any particular types of lodging or showing resistance to upgrading their flights.”
That higher spending is partly based on rising costs, but also on higher-income households emphasizing upscale experiences.
“Amid pricing pressures, those who are packing their bags this summer intend to spend, indicating that many are putting a premium on experiences,” Deloitte Vice Chair Kate Ferrara said in a statement.
Travelers who plan to ditch summer travel plans because of pricier day-to-day expenses may want to keep an eye out for bargains, as travel operators may create “well-constructed deals” to draw in more travelers, Deloitte said.
