“Due to high costs, many Americans are either cutting back on their travel expenses or choosing not to travel at all.”

Travelers seem to be reaching their limit. With the surge in “revenge travel” waning and pandemic savings running low, many are planning fewer trips this summer or skipping vacations entirely. According to a Deloitte Insights summer travel report, the number of Americans intending to take leisure trips is declining after two years of growth. Major companies like Marriott, Hyatt, Wyndham, Airbnb, and Expedia are also predicting a drop in travel demand this year.

Travel costs are a significant factor. Deloitte’s survey of over 4,000 people shows that Americans are planning an average of 2.3 trips this summer, down from 3.1 trips last summer. The percentage of people avoiding summer travel altogether has risen from 37% to 42%. Nearly a third of respondents cited high travel costs as the reason for staying home, an increase of eight percentage points from last year. Additionally, 14% of those who do plan to travel intend to spend less, often by taking shorter trips. Conversely, 19% plan to spend more, not out of desire but due to rising prices.

Younger generations, particularly Gen Z and millennials, are cutting back on discretionary spending, including travel, according to Morning Consult economist Sofia Baig. These groups are spending less on airfare and hotels, indicating a market normalization post-revenge travel. Despite this, younger adults still prioritize travel for mental health reasons, unlike older generations who saved for long-term goals. However, Baig notes that while travel is important for their well-being, it is not as essential as rent or groceries. Nonetheless, younger travelers are dedicating a larger portion of their budget to travel compared to older generations. A report by Hopper in April found that Gen Z individuals earning less than $50,000 annually spend up to 49% more on travel than their older counterparts with similar incomes.