More Americans plan to travel this holiday season than at any point in the past five years, but a pullback in spending, across generations and including high-income households, suggests a shift in travel patterns.
Reports from both Deloitte and PwC point to signs of a spending slowdown this holiday travel season.
Deloitte's 2025 Holiday Travel Survey found that more than half of respondents (54%) plan to travel between Thanksgiving and mid-January, a five-year high-water mark, but these holiday travelers are planning fewer trips and are spending less. The average number of planned holiday trips fell to 1.83 from 2.14 last year, while budgets dropped 18%, to $2,334.
These declines come as nearly one in three Americans say their financial situation is worse than it was a year ago, up from one in four in 2024. And it's high-income households, which Deloitte defines as those earning $100,000 or more annually, that are leading this shift, with 19% feeling worse off financially this year, compared to 13% in 2024, according to the survey of nearly 3,900 Americans, conducted from Sept. 26 to Oct. 3.
Deloitte has dubbed this particular subgroup of high-income earners the "cautious class."
"People are still continuing to prioritize travel, so that's good news, but certainly, budgets are tightening," said Kate Ferrara, national sector leader for transportation, hospitality and services at Deloitte & Touche. "People are more conscious about budget, and it was a bit surprising to see that some of our higher-income travelers are pulling back."
Kate Ferrara
This pullback is evident across several travel categories, with hotel usage dropping to 59% from 62% last year, and domestic flight usage falling to 45% from 52% in 2024. International flight plans decreased to 17% from 24% the year prior, according to the survey.
"So, for example, [some travelers] are now maybe driving instead of flying, or staying with relatives instead of at hotels, or maybe not choosing some of the upgrades, or not going out to eat," Ferrara said. "It's not necessarily that people aren't traveling, but perhaps they're just being more conscious of spend."
That jibes with findings from a AAA survey that found that about 73 million people, 90% of travelers, will travel by car this Thanksgiving, up 1.3 million compared to last year.
Despite high-earners pulling back overall, the luxury travel category is strong.
One in four surveyed qualified as "luxury travelers," which Deloitte defines as those who have stayed at a property they consider luxurious in the past two years and who have booked hotels with nightly rates of $400 or more during at least two leisure trips in 2025. Deloitte reports that these luxury travelers are twice as likely to book first-class air.
"Even amid some of the softening travel and spending intentions, folks who like the luxury travel experience are still going to stay at luxury properties this season," Ferrara said. "The pockets of people who we consider luxury travelers are still pretty strong."
PwC took an earlier look at this year's holiday trends, fielding a survey of 4,000 U.S. consumers from June 26 to July 9, showing travel and entertainment spending was up just 1% year over year, which, according to PwC travel industry leader Jonathan Kletzel, "feels more like flat growth in real terms" when accounting for inflation.
"Compared with past holiday seasons -- where overall spending tended to rise more consistently -- this year looks more like a reset or cooling-off period rather than a strong growth year," Kletzel said. "Consumers are telling us broadly they still want to travel, but they're being more cautious with how far their dollars go."
According to the survey, the 2025 Holiday Outlook, this pullback in spend appears most pronounced among Gen Z travelers. Just 55% of those respondents said they plan to travel in 2025, down from 61% last year. Among Gen Z travelers who are staying home, 50% cited cost as a factor.
While Gen Z travelers are the most likely to cut back on holiday travel, Kletzel emphasized that a shift toward more affordable options isn't generation-specific.
"Across all generations, we found consumers are becoming more value-focused," he said. "Most travelers will still take the trip -- they're just swapping in lower-cost options or skipping the extras that make a trip more expensive."
Kletzel added that this could create opportunity for more value-oriented travel options over the holidays, with regional and road trip destinations likely to see a lift.
Vacation rentals, for example, already appear to be benefiting this season. Short-term rental data firm AirDNA reports that Thanksgiving bookings are running 7% to 9% above last year, with the biggest gains being in drive-to leisure markets like Orlando; Gatlinburg and Pigeon Forge, Tenn.; and Austin, Texas.
Additionally, short-term Christmas Eve and Christmas Day bookings are up 12% and 14%, respectively, compared to last year, while New Year's Eve and New Year's Day bookings are up 17% and 21%, respectively.
Jamie Lane
"When you look at why travelers choose a short-term rental, a lot of times it's the more affordable option," said Jamie Lane, chief economist at AirDNA. "You're typically traveling with your family, so instead of getting multiple hotel rooms, you're getting one rental."
And with meals often taking center stage during the holidays, a short-term rental's kitchen can offer a far more budget-friendly alternative to restaurant dining.
"You have a kitchen, and if you want to cook on Thanksgiving or do a meal on Christmas morning, that's much more feasible in a vacation home than it is at a hotel," Lane said.