How rising prices are hitting summer vacations

Summer vacations will be more expensive this year as US consumers face price hikes over considerations like airfare and lodging. As a result, many travelers are cutting back and turning to digital channels to find deals.

  • Despite these economic headwinds, US digital travel sales are expected to reach $332.56 billion, up 5.0% YoY, EMARKETER forecasts.

Rising prices

If sales are increasing on digital travel channels, it’s not because consumers are looking to buy more things. The rise in travel-related expenses is much higher than modest gains on digital channels, suggesting travelers are cutting back.

“No matter how you cut it, travel is getting more expensive,” said our analyst Zak Stambor, on a recent episode of “Behind the Numbers.” “Gas prices were up 40.5% YoY in May. Airfares were up 26.7% YoY. And lodging away from home, which is the broad category that includes hotels and motels and vacation stays and some other stuff, was up 5.1%. So everything is not just getting more expensive, but a lot more expensive.”

“Folks are spending more or intend to spend more,” said our analyst Jennifer Pearson. “But really, it's because of the cost of travel. It's not because they're, you know, splurging.”

Travel plans are dwindling

High prices are driving some Americans to skip travel altogether. Fewer Americans are planning a summer vacation trip this year than in recent years.

  • Some 50% of US adults are planning a vacation this summer, down from a high of 63% in 2023, per Deloitte’s April survey.

“[Planning a summer vacation] has been trending downward,” said our analyst Jennifer Pearson. “It did rise after the pandemic, but I think people are staying local, and not making as many plans. It's just too expensive.”

Some travelers were already wary at the beginning of the year. Only 36% planned to spend more this year, according to a January survey by The Points Guy. Another 36% planned to spend the same, and 19% planned to spend less than they did in the last two years.

“When you're filling up the tank, and that's eating up a large share of your budget, and other everyday expenses are also getting more expensive, you have to cut costs somewhere,” said Stambor. “Discretionary spending like travel is just one place to cut.”

  • Two-thirds (66%) of US travelers plan to use a car, according to an April Numerator survey.

Where travelers plan trips

Those who do plan summer vacations will look to digital channels to find deals and stretch their budget.

  • A slim majority of travelers (51%) say they will use search engines to help plan trips in the next year, per an October 2025 Leger survey. Hotel brand websites (43%), digital booking services (40%), and online review sites (36%) round out the top four channels.

“I think when people are cost-conscious, they wanna shop around, and they wanna shop around for the best price,” said Stambor. “And I think a lot of people associate search engines as a neutral arbiter, where they can get a true sense of price without any thumb on the scale.”

He added: “I think people going to hotel websites also makes sense because I think loyalty is a big driver of where people stay.”

Separately, hotel apps and loyalty platforms came in fifth-most popular, with 34% of travelers planning to consult one, according to the Leger survey.

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This was originally featured in the EMARKETER Daily newsletter. For more marketing insights, statistics, and trends, subscribe here.

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