Rising Costs Drive U.S. Summer Travel to Six-Year Low, Deloitte Survey Finds

Why It Matters

The dip in travel intent pressures airlines and hotels, while the higher per‑traveler spend and tech‑savvy demand for premium experiences reshape revenue models and marketing strategies across the U.S. travel sector.

Key Takeaways

• Only 45% plan summer trips, lowest in six years.
• Average spend per longest trip rises to $4,069, up 17%.
• Gen Z and millennials boost trip frequency and tech‑driven planning.
• One in four travelers increase budgets, favor upgrades in airfare and lodging.
• Loyalty program membership stays at 78%, while advance bookings drop to 35%.

Pulse Analysis

Rising inflation and surging airline and hotel rates have pushed the share of Americans planning a summer vacation to a six‑year low, according to Deloitte’s latest survey. The cost squeeze is most acute for households earning under $100,000, where travel intent fell eight percentage points YoY. For the travel industry, the contraction in trip volume threatens traditional revenue streams, prompting carriers and hospitality firms to reassess pricing tactics and explore ancillary services to offset the dip in bookings.

Travelers who remain on the road are spending more and seeking richer experiences. The average budget for the longest summer trip climbed to $4,069, driven by upgrades in cabin class, premium lodging locations and longer stays. Younger cohorts—Gen Z and millennials—are not only taking more trips but also leveraging short‑form video platforms and generative AI to curate itineraries, with 25% of Gen Z and 36% of millennials using AI tools. Remote‑work flexibility adds another layer, as over a third of all travelers now plan to work while on vacation, reshaping demand for reliable Wi‑Fi and co‑working spaces.

These shifts signal a strategic pivot for the travel ecosystem. Airlines are emphasizing reliability over price, while higher‑income guests gravitate toward full‑service hotels and destination resorts, prompting operators to enhance loyalty rewards and experiential packages. The decline in advance bookings—down to 35% for marquee trips—suggests a move toward more spontaneous, technology‑enabled purchasing. Companies that can blend premium offerings with seamless digital experiences are likely to capture the higher‑spending segment and mitigate the broader market slowdown.