Americans are planning fewer summer vacations this year than at any point in the last six years, as persistent inflation and rising fuel costs continue to squeeze household budgets. A May study from research firm Deloitte reveals that only 45 percent of US residents intend to take a domestic or international trip involving paid lodging this summer, representing the lowest proportion recorded since 2020.
Affordability Concerns Drive Decline
“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 Deloitte report states. The survey underscores a widening gap between income groups: households earning less than $100,000 per year are cutting back on travel at twice the rate of those earning $100,000 or more.
This disparity reflects the broader impact of inflation, which remains near a four-year high. For half of lower-income households, travel is “one of the first things” eliminated from spending when budgets tighten. Additionally, 35 percent of all non-travelers say higher day-to-day expenses are either completely preventing or significantly limiting their ability to take a summer holiday.
Rising Costs and Record Spending
The cost of travel has surged, partly due to a sharp increase in petrol prices linked to the ongoing conflict in Iran. According to travel insurance marketplace Squaremouth, 35 percent of those staying home cite high costs as the primary reason. Meanwhile, those who do travel are spending more than ever before. Through March, the average traveller spent $7,250, the highest figure in Squaremouth’s 23-year history.
Summer trip budgets are up 17 percent year-on-year, Deloitte reports. Households earning between $100,000 and $199,000 increased their spending by 24 percent, the largest jump among all income brackets. “Beyond the dip in overall travel plans, there are few concerning signals for travel providers in the upcoming summer season,” Deloitte notes. “Travelers are not shying away from any particular types of lodging or showing resistance to upgrading their flights.”
Premium Experiences and Potential Deals
Higher spending is partly driven by rising costs, but also by a shift among affluent travellers towards premium experiences. “Amid pricing pressures, those who are packing their bags this summer intend to spend, indicating that many are putting a premium on experiences,” said Kate Ferrara, vice chair at Deloitte, in a statement.
For those staying home, Deloitte suggests keeping an eye out for bargains. Travel operators may offer “well-constructed deals” to attract more customers, potentially making summer getaways more accessible for budget-conscious consumers.
