Summary:
- Most Americans are planning holiday travel for the first time in five years, Deloitte reported.
- Gen Z and millennials now account for half of holiday travelers.
- About 57 percent of travelers choose driving over flying to cut costs.
MORE THAN HALF of Americans plan to travel between Thanksgiving and early January for the first time in at least five years, according to a Deloitte survey. However, the average number of trips dropped to 1.83 from 2.14 last year.
Deloitte’s “2025 Holiday Travel Survey” reported that the average planned holiday travel budget is down 18 percent to $2,334. More travelers plan to stay with friends or family rather than book hotels or rentals.
About 31 percent of respondents say their financial situation is worse than a year ago, up from 26 percent in 2024. Among households earning $100,000 or more, 19 percent feel worse off, compared with 13 percent last year. In this group, 80 percent plan to adjust travel to reduce costs, compared with 58 percent of those who feel financially stable.
About 57 percent of travelers cite cost savings as the reason for driving instead of flying, the report said. Cutbacks include shorter trips, fewer flights, cheaper lodging and lower spending on activities.
Gen Z and millennials are expected to account for half of all U.S. holiday travelers this year, Deloitte said. Millennials have the highest average travel budget at $2,602 and younger travelers plan more trips than older generations.
More than half of Gen Z travelers use short-form social video for travel research, the poll found. Use of generative AI for trip planning is up 1.5 times from 2024, led by millennials.
Moreover, about one in four travelers qualifies as a “luxury traveler” under Deloitte’s definition. This group is about twice as likely to book first-class air and places more weight on service quality and loyalty programs when choosing hotels.
Overall travel interest remains, but 2025 looks leaner than 2024 in nights away, trip frequency and spending, with pressure even at higher income levels while younger, digitally fluent travelers gain share.
In September, Deloitte found that U.S. corporate travel will be more cautious in 2025 after two years of recovery, as some companies plan higher spending while cutbacks by larger organizations cloud the outlook.
