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Holiday trips still on, but travelers cut costs and skip big splurges

Travelers are budgeting about $2,300 for trips this year — an 18% drop compared to last year.
Holiday travel cutbacks and predictions
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Despite a government shutdown and economic uncertainty, experts say holiday travel plans remain strong.

A new survey finds 54% of Americans still plan to get away this season — but travel will look a little different, with packed airports and crowded highways expected. Travel expert Tomeka Jones has been watching industry trends closely.

"Americans started to book their flights back in June just for the upcoming holiday season for November and December," she said.

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A Deloitte survey shows Americans aren’t skipping holiday travel, but many are aiming to spend less. More than 30% of those surveyed said their financial situation is worse than last year, up from 25% in 2024. Deloitte’s Eileen Crowley says Gen Z travelers are cutting back the most.

"What we are seeing is that just the higher cost of living, some of them might want to be paying off debt or have more savings and they might feel their financial conditions are a little worse," Crowley said. "Whereas Boomers — if you contrast that with boomers — many of them are in retirement and may be more immune to what is happening in the economy."

More than half of respondents plan to drive rather than fly, and 22% say they will stay with friends or family instead of paying for a hotel — slightly more than last year.

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The U.S. Travel Association reports road trips and winter getaways are still on the rise, up about 1.9%. While that may sound small, experts say it indicates travelers are making room in their budgets to see loved ones or take short escapes. International trips, however, are down.

"Those who are taking an international flight is down," Crowley said. "And from our survey we do see only about 17% expect to take an international flight this holiday season … down from 24% last year. International travel to the U.S. is also expected to dip about 6%, meaning fewer overseas tourists crowding major destinations like New York or Orlando."

Travelers are budgeting about $2,300 for trips this year — an 18% drop compared to last year. Even big spenders who typically opt for luxury hotels or first-class flights say they plan to cut back.