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.
Many U.S. adults plan overnight leisure and business trips this year, according to AHLA.
Hotels top the list for 44 percent of leisure travelers and 63 percent of business travelers.
Four in five guests plan to stay at midscale or higher properties.
HALF OF U.S. adults plan to travel overnight for leisure before year-end, according to an American Hotel & Lodging Association survey. Nearly one-third of employed adults, 31 percent, expect to travel overnight for business.
The AHLA survey, conducted by Morning Consult, found hotels are the top choice for 44 percent of leisure travelers and 63 percent of business travelers, with nearly four in five guests planning to stay at midscale or higher properties.
Americans are most likely to take an overnight family trip, at 46 percent, with 34 percent traveling for Thanksgiving and 37 percent for Christmas, the report said. Travelers on romantic getaways and solo trips are more likely to choose hotels, while those visiting family for the holidays tend to stay with relatives.
However, travel intention has declined slightly from last fall and winter, with 45 percent citing rising costs as the main reason for scaling back plans, the poll found. About half say inflation could reduce their likelihood of overnight travel, yet 46 percent still plan an overnight family trip in the next four months despite financial concerns.
"These findings reinforce what we know: Americans want to travel and they overwhelmingly trust and depend on hotels when they do,” said Rosanna Maietta, AHLA president and CEO. “Despite this positive sentiment, rising costs and economic uncertainty are having a lingering effect on travel plans. That’s why AHLA advocates daily across all levels of government for policies that strengthen the hotel industry, its workforce and consumer confidence.”
The poll was conducted Sept. 6 to 8 among a sample of 2,202 adults.
A recent Hyatt Inclusive Collection survey found most Americans define quality time as moments with loved ones, yet 82 percent say they don’t get enough.
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