Holiday Travel Spending Turbulence: More Trips, Tighter Budgets

Beginner | December 17, 2025

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Holiday Travel Spending Turbulence Is the Big Story This Season

This holiday season, more people say they want to travel—but many also say they’re watching their money more closely. A new report from Deloitte says 54% of Americans surveyed plan to travel between Thanksgiving and mid‑January. That sounds like a strong travel season.

More Travelers, But Smaller Budgets

Here’s the catch: the same Deloitte survey says the average travel budget is $2,334, and that’s 18% lower than last year. Deloitte also says travelers plan fewer trips: 1.83 trips this season compared with 2.14 in 2024. In other words, the travel “yes” is rising, but the spending “yes” is getting weaker.

Why Budgets Feel Tight

Deloitte found that 31% of people surveyed said they feel worse off financially than a year ago (up from 2024). When people feel uncertain, they usually cut costs first—especially on things like hotels, upgrades, and restaurants.

Even High-Income Travelers Are Pulling Back

This is where the holiday travel spending turbulence gets more interesting. Deloitte notes that some higher‑income travelers (people earning $100,000+ a year) plan to reduce trips and trim costs. A Reuters report on the survey highlights that even higher‑income households reported feeling financially worse off, and many are choosing more cost‑effective options.

Travel Companies Still See Big Crowds

Even if budgets are tighter, travel can still be busy. For example, AAA projected 81.8 million Americans would travel at least 50 miles for Thanksgiving in late November—an all‑time record. So we may see crowded roads and airports, even while people try to spend less once they arrive.

The Simple Takeaway

If you work in travel, hospitality, retail, or service, this holiday travel spending turbulence matters. You may see strong demand, but customers might be more price‑sensitive. They still want the trip—they just want the trip to feel like a good deal.

Vocabulary

Intent (noun) – a plan or goal to do something.
Example: “Travel intent rose this year.”
Budget (noun) – the amount of money you plan to spend.
Example: “My holiday travel budget is smaller this year.”
Turbulence (noun) – instability or uncertainty.
Example: “Spending turbulence makes travelers cautious.”
Respondent (noun) – a person who answers a survey.
Example: “Survey respondents shared their travel plans.”
Scale back (phrasal verb) – to reduce or do less.
Example: “Many families will scale back their trips.”
Cost‑effective (adjective) – good value for the money.
Example: “They chose a cost‑effective hotel.”
Upgrade (noun/verb) – a better, usually more expensive option.
Example: “He skipped the room upgrade to save money.”
Price‑sensitive (adjective) – strongly influenced by price.
Example: “Price‑sensitive customers look for discounts.”
Forecast (noun) – a prediction about what will happen.
Example: “AAA released a travel forecast for Thanksgiving.”
All‑time record (noun phrase) – the highest number ever.
Example: “The forecast predicts an all‑time record.”

Discussion Questions (About the Article)

What does “holiday travel spending turbulence” mean in this article?
What percentage of people surveyed plan to travel this season?
How did the average travel budget change compared to last year?
Why might people spend less even if they still travel?
How could this trend affect hotels and airlines?

Discussion Questions (About the Topic)

Do you travel during holidays? Why or why not?
When you travel, what do you spend money on first?
How do you save money on trips?
Do you prefer driving or flying for holiday travel?
What makes a trip feel “worth it” to you?

Related Idiom

“Tighten your belt” – to spend less and be more careful with money.

Example: “Many travelers are tightening their belt this season, even while they still take trips.”

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This article was inspired by: Deloitte, Reuters, and AAA.