Spending hits five-year high, demand up for cost-free eco-friendly options
Americans are traveling more in 2025 than in the past five years despite financial pressures, with travelers planning to spend $5,138 and take 4.2 vacations in the next 12 months, the highest in five years, according to a new MMGY study.
Vishnu Rageev R is a journalist with more than 15 years of experience in business journalism. Before joining Asian Media Group in 2022, he worked with BW Businessworld, IMAGES Group, exchange4media Group, DC Books, and Dhanam Publications in India. His coverage includes industry analysis, market trends and corporate developments, focusing on retail, real estate and hospitality. As a senior journalist with Asian Hospitality, he covers the U.S. hospitality industry. He is from Kerala, a state in South India.
How Are U.S. Travel Trends Changing for Americans in 2025?
AMERICANS ARE TRAVELING more in 2025 than in the past five years despite financial pressures and a shifting travel landscape, according to a new MMGY study. Travelers plan to spend 5,138 dollars and take 4.2 vacations in the next 12 months, the highest in five years.
MMGY’s Portrait of American Travelers study of 4,500 leisure travelers highlights key U.S. travel trends, including demand for meaningful experiences, AI and sustainability in trip planning.
“Travel is no longer just a luxury—it’s an essential part of Americans’ lives and an investment in well-being, connection, and personal fulfillment,” said Simon Moriarty, MMGY Travel Intelligence's vice president for syndicated research. “Despite rising costs, travelers are prioritizing meaningful experiences, using technology for smarter planning, and seeking sustainable options that align with their values. The future of travel is about balancing tradition with innovation, and the industry must evolve to meet these expectations.”
The study found that environmental concerns influence travel decisions, with travelers preferring eco-friendly options at no added cost. Off-season travel is emerging as a sustainability strategy, easing environmental strain and providing budget-friendly options. Meanwhile, 58 percent of travelers cite overtourism concerns as a factor in their destination choices for the next five to ten years.
Hawaii, Florida and California remain popular, but extreme weather has dampened interest in some areas. Meanwhile, Washington, D.C., has gained popularity, likely driven by increased media attention after the presidential election.
More travelers are stretching their budgets despite affordability concerns, the report said. Many are opting for off-season travel and alternative accommodations like short-term rentals to maximize value without sacrificing quality.
Generational differences in travel planning are growing. Gen Z and Millennials rely on AI tools and social media influencers for inspiration and itineraries, while Boomers prefer travel agents and review websites. AI-driven travel assistance, from itinerary planning to price comparisons, is gaining traction, with usage rising to 34 percent from 31 percent in early 2024.
International travel is rebounding, with 35 percent of U.S. travelers planning a trip abroad in the next six months. Europe, the Caribbean, Canada, Mexico and Asia remain top destinations, with Boomers favoring Europe and younger travelers drawn to Asia for affordability and adventure.
MMGY’s Portrait of American Travelers Winter Edition found that Americans plan more travel in 2025, with average vacation budgets rising to $5,051, trips increasing to 4.1 per person, and nearly 80 percent of U.S. adults expecting to vacation in the next 12 months, up 7 percent from winter 2023.
Approximately 75 percent of travel managers expect business travel to rise in 2025, according to Cvent, but travel spend is expected to remain flat, while 71 percent anticipate higher costs.
Cost reduction is a key reason for consolidating travel and meetings management, with 83 percent of dual managers reporting savings.
Only 9 percent plan to cut tech budgets, while 30 percent are spending more time using technology to research hotel partners.
APPROXIMATELY 75 PERCENT of travel managers globally expect business travel volume to rise in 2025, according to Cvent. However, travel spend is expected to remain flat, while 71 percent anticipate higher costs, putting pressure on travel programs.
Cvent’s 2025 Global Travel Managers Report found that North American travel managers continue to prioritize in-person meetings despite hybrid work models and economic pressures.
“In the face of economic uncertainty and shifting workplace dynamics, North American travel managers are demonstrating resilience and adaptability,” said Janine Alsalam, vice president of sales at Cvent. “They are finding new ways to balance cost consciousness with corporate goals, ensuring that business travel and face-to-face meetings continue to deliver value. It’s also encouraging to see companies bringing together travel and meetings, with 83 percent reporting cost savings of up to 20 percent.”
The report, based on a survey of more than 1,600 business travel professionals across six regions and 18 countries, examines expectations and behaviors around corporate travel.
North America insights
North American travel managers continue to prioritize in-person meetings despite hybrid work models and economic pressures, the report said. Conferences and trainings are the most sourced meeting types, even as event and conference travel faces budget cuts, reflecting tension between business goals and cost control. Centralized sourcing is increasing and technology investment remains steady, supporting more integrated travel strategies.
Around 69 percent of respondents cite event and conference travel as a primary reason for travel, the highest globally, followed by networking at 52 percent. Top event types facing budget cuts include event and conference travel and trade shows, in contrast to the global trend targeting internal meetings, incentive trips and retreats.
Globally, travel managers plan to reduce costs by negotiating lower hotel rates for convenience at 25 percent, sending fewer travelers at 23 percent and sourcing across different brand scales at 23 percent, the study found. Sourcing is becoming more centralized, with cost savings cited by 58 percent and operational efficiency by 48 percent as the main reasons for combining business travel with meetings and events.
Rate strategies are also shifting; 57 percent say lack of flexibility is the biggest challenge in travel negotiations. Around percent of North American travel managers prefer a mix of fixed and dynamic pricing, while 25 percent still rely on fixed rates—the highest among all regions.
Technology use remains strong: only 9 percent plan to reduce tech budgets, while 30 percent are spending more time using technology to research hotel partners.
Coping with travel costs
As travel costs rise, travel and meetings management has become more centralized. Ninety-one percent of travel managers are now responsible for sourcing hotels and venues for meetings and events, up from 64 percent in 2017.
According to respondents, a top reason for consolidating travel and meetings management is cost reduction, with 83 percent of those managing both reporting savings.
A recent Global Business Travel Association report found that U.S. companies are missing more than $2.4 trillion in potential sales due to underinvestment in business travel, with spending still $66 billion below 2019 levels.
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This year’s forecast is up 1.7 million from 2024 and 7 million from 2019.
This Independence Day is expected to see 1.3 million more road travelers than in 2024.
Top U.S. spots: Orlando, Seattle, New York, Anchorage, Fort Lauderdale, Honolulu, Denver, Miami, Boston and Atlanta.
APPROXIMATELY 72.2 MILLION Americans are expected to travel at least 50 miles from home during the Independence Day period from June 28 to July 6, according to AAA. The forecast is 1.7 million higher than last year and 7 million more than in 2019.
“Summertime is one of the busiest travel seasons of the year, and July 4th is one of the most popular times to get away,” said Stacey Barber, AAA Travel’s vice president. “Following Memorial Day’s record forecast, AAA is seeing strong demand for road trips and air travel over Independence Day week. With the holiday falling on a Friday, travelers have the option of making it a long weekend or taking the entire week to make memories with family and friends.”
Car travel leads
About 61.6 million people will travel by car, a 2.2 percent increase over last year and the highest on record, the report said. This Independence Day period is expected to have 1.3 million more road travelers than in 2024.
Drivers are seeing some increases at the pump, but summer gas prices remain lower than in recent years, AAA said. Crude oil prices have kept costs down overall. The Israel-Iran conflict has pushed oil prices up slightly, with escalation and duration being key factors to watch. Weather also remains a variable.
The Atlantic hurricane season has begun and NOAA predicts a 60 percent chance of an above-normal season. Storms along the Gulf Coast can impact refineries and disrupt fuel deliveries, causing temporary gas price increases.
AAA expects 5.84 million travelers to fly, accounting for 8 percent of all Independence Day travel. This is a 1.4 percent increase over last year’s record of 5.76 million.
Travel by other modes is expected to grow 7.4 percent over last year, AAA said. About 4.78 million people are projected to travel by bus, train or cruise, just below the 2019 record of 4.79 million. Cruise travel is the main driver, especially during Alaska cruise season.
Top destinations
The top holiday destinations are based on AAA booking data for the Independence Day travel period. Cruises, beaches, and fireworks are key reasons travelers are visiting these cities. Alaska cruises are in peak season; Florida and Hawaii see strong demand for resorts and attractions; New York and Boston draw crowds for their fireworks shows. Internationally, Vancouver leads, followed by major European cities.
Top domestic destinations include Orlando, Seattle, New York, Anchorage, Fort Lauderdale, Honolulu, Denver, Miami, Boston and Atlanta. Key international destinations include Vancouver, Rome, Paris, London, Barcelona, Dublin, Amsterdam, Calgary, Athens and Lisbon.
In May, AAA said 45.1 million Americans would travel 50 miles or more over Memorial Day weekend, the highest on record.
Staying connected is a travel priority for Gen Z and millennial travelers.
Unreliable and weak signals remain top travel frustrations.
Fast internet and mobile service is their top requirement.
STAYING CONNECTED REMAINS a key priority for Gen Z and millennial professionals while traveling, according to a Cox Business survey. More than 35 percent of respondents cited unreliable mobile connectivity as a top frustration, while 34 percent pointed to weak connectivity as a concern.
Fast and reliable internet and mobile service was identified by 58 percent as the most important feature, the survey found.
“Business travelers expect more than just a place to stay,” said Jady West, Cox Business’s vice president of hospitality. “That’s why we provide innovative, customized network solutions—backed by 24/7 expert support—to eliminate common connectivity pain points like spotty coverage and mobile dead zones.”
Cox Business’s hospitality subsidiaries, BlueprintRF and Hospitality Network, provide solutions to meet changing connectivity and entertainment needs, including managed WiFi, in-room TV video solutions, VoIP, and enterprise internet.
Rakesh Gupta, Atrium Hospitality’s vice president for IT, said reliable and high-speed connectivity isn’t a luxury for travelers—it’s an expectation.
“Whether they’re working remotely, streaming content, or staying in touch with friends and family, these guests value a seamless digital experience,” he said.
A recent Mews survey found that about 70 percent of American travelers prefer checking into a hotel using an app or self-service kiosk over the front desk.
How are Americans booking hotels in 2025 summer travel season?
AMERICANS ARE STILL prioritizing travel despite inflation and economic uncertainty, but with greater financial caution and planning, according to TravelBoom Hotel Marketing. About 74.5 percent of U.S. respondents plan to take a summer vacation, and another 17.5 percent are considering it—indicating strong demand tied to careful budgeting.
TravelBoom’s 2025 Booking Trends Study, based on a survey of 200 U.S. travelers, analyzes shifting booking behavior and how independent hoteliers can convert intent into direct bookings.
“We’re seeing travelers crave spontaneity but behave with precision,” said Pete DiMaio, TravelBoom’s hotel marketing expert. “They want the freedom to travel but need the assurance that they’re making the right financial decisions.”
About 65 percent of respondents start planning trips 1 to 3 months out, and 68 percent book accommodations one to two months in advance—giving hoteliers a clear window for campaign targeting and remarketing, the report said. While intent remains strong, economic pressures have led 78 percent of respondents to change their travel behavior, and nearly half cite the broader economy as a key factor.
In this environment, confidence drives action. Guaranteed best rates, free cancellations, and early booking discounts are the top incentives, the report said. Urgency also plays a role and 47 percent book immediately when prices drop while 38.5 percent act quickly when availability is limited.
When choosing destinations, travelers prioritize value and experience—such as travel costs, dining options, and weather—over family-oriented features, signaling a shift toward more adult-focused trips.
A separate survey by Mews Systems found that about 70 percent of American travelers are likely to check into a hotel using an app or self-service kiosk rather than the front desk.
How does GBTA support hospitality and business travel in 2025?
MORE THAN 100 members and constituents of the Global Business Travel Association gathered in Washington, D.C., for the GBTA U.S. Legislative Summit 2025 to advocate for the role of business travel. Members from GBTA’s 38 U.S. chapters met with senators, representatives and congressional staff to advance business travel’s economic impact and improve the travel ecosystem.
The summit, held June 10 to 12, gave industry professionals an opportunity to network, learn and meet with legislators to highlight business travel’s role in the U.S. economy, GBTA said in a statement.
“For more than two decades, GBTA has hosted legislative fly-ins to connect business travel experts with U.S. policymakers to foster understanding, advocate for priority issues and facilitate a better experience for business travelers,” said Suzanne Neufang, GBTA’s CEO. “By promoting the strategic role of business travel in driving economies, innovation, jobs and strategic collaboration, we foster a more resilient future for business travelers and those who support them.”
The association advocated for streamlined international travel, including policies to improve traveler experience and restore confidence in U.S. entry processes. Participants also addressed the need to modernize the U.S. air traffic system, support sustainable aviation fuel and expand passenger rail as a travel alternative.
Attendees heard directly from members of Congress, including Sen. Jacky Rosen of Nevada and Rep. Rick Larsen of Washington, and from experts on topics such as air traffic system modernization, the evolution of SAF and U.S. passenger rail travel, the statement said.
In nearly 150 meetings with legislators, attendees shared GBTA’s policy priorities for U.S. business travel. They called on lawmakers to support modernization of the air traffic system; improve travel at U.S. borders; fund the hiring of 5,000 additional Customs and Border Protection officers; reject any extension of the diversion of the 9/11 Passenger Security Fee; provide resources for CBP’s implementation of the Entry and Exit Program to accelerate processing at points of entry; extend the Clean Fuel Production Credit (45Z) through 2031; and fund improvements to the U.S. rail system.
Attendees also shared findings from the “GBTA U.S. Economic Impact Study: Business Travel’s Impact on Jobs and the U.S. Economy,” which shows business travel contributes $484.4 billion annually, or 1.9 percent of the U.S. gross domestic product. They also presented GBTA poll results reflecting industry concern about the impact of U.S. government actions on business travel.
Last July, a GBTA study projected global business travel spending would reach $1.48 trillion by the end of 2024, surpassing the 2019 record of $1.43 trillion.