- Fullstory: Travel demand resilient, spending deliberate.
- About 70 percent traveled in the past year or plan to travel this year.
- Price and value are the top booking factors.
TRAVEL DEMAND REMAINS resilient despite economic pressure, but consumers are becoming more deliberate in how they plan and spend on trips, according to analytics firm Fullstory. Travelers now prioritize value, transparency and convenience as rising costs reshape booking behavior.
Fullstory’s “2026 Travel & Hospitality Survey” of more than 1,000 U.S. consumers found that 70 percent traveled in the past year or plan to travel this year. While demand remains strong, consumers are adjusting behavior to manage costs, including booking earlier, shortening trips and using alternative transportation.
“As costs rise and budgets tighten, consumers are still planning to travel, but they are making more deliberate decisions about when, how and where they spend,” said Jason Wolf, Fullstory president. “More intentional demand means success will be defined less by volume and more by precision. Travel brands that deliver the right experience at the right moment while removing friction and building trust will be best positioned to win market share and loyalty.”
Cost is increasingly shaping travel decisions, the report said. About 33 percent of respondents are reducing travel budgets or shortening trips, while 31 percent are booking earlier to avoid price increases. Another 20 percent are choosing alternatives such as driving instead of flying.
Generational differences also emerged. Older travelers were less likely to change travel plans due to cost increases, with 25 percent of Baby Boomers and 18 percent of Gen X reporting no change in behavior, compared with 14 percent of Millennials and 8 percent of Gen Z.
Traditional digital channels remain dominant in travel planning. Search engines are used by 53 percent of respondents, followed by online travel agencies at 51 percent and airline or hotel websites at 44 percent. AI tools are emerging in early trip planning, with 15 percent using platforms such as ChatGPT and Claude.
Price and value are the top factors influencing booking decisions, cited by 77 percent of consumers, followed by customer service at 51 percent and booking convenience at 48 percent. Lower or price-matched rates are the main incentive to book directly with airlines or hotels, while faster booking and loyalty benefits also influence choice.
Friction in the booking journey remains a challenge for travel brands. Hidden or unexpected fees were cited by 61 percent of respondents as the main source of frustration. Delayed or ineffective customer service and limited availability were also key issues.
These frustrations can affect brand loyalty, the survey said. Nearly seven in 10 consumers said they would switch travel brands after a negative experience. Booking abandonment is also common, with 31 percent leaving purchases due to last-minute price changes and 24 percent exiting to compare options and not return.
The findings suggest travelers are open to personalization when it delivers practical value. More than half of respondents said personalized pricing, discounts, or bundled offers have the greatest impact on their travel experience, compared with destination or content recommendations.
Consumers also value digital tools that improve convenience, including mobile boarding passes and check-in, real-time alerts and centralized itinerary management.
A recent study from upholstery supplier Top Fabric found that hotel supply is not keeping up with demand in several mid-sized U.S. cities, which could reduce tourism revenue as visitor demand grows. The shortage can lead to tourism leakage, with travelers shortening stays, booking outside city centers, or facing availability constraints during peak periods.
