Amid Economic Uncertainty, the 'Rise of Strategic Travel'

Rising costs drive Americans to shorter trips, local staycations for summer break
Posted Jul 20, 2025 2:35 PM CDT
Summer Getaways Shrink as Americans Cut Back on Travel
Stock photo.   (Getty Images/demaerre)

Americans are hitting pause on lavish summer getaways, with many opting for shorter, closer-to-home trips as economic uncertainty weighs on household budgets. Recent data from Bank of America shows fewer families are booking flights and hotel accommodations compared to last year, while Labor Department figures reveal that the number of workers taking vacation time in June dropped to its lowest level since the pandemic, per the Washington Post. Meanwhile, the phenomenon of "trip-splitting"—taking those truncated but more frequent trips in lieu of one big annual vacation—rose from 18% in March to 28% in April, per Globetrender, which in May heralded "the rise of strategic travel."

A recent survey by financial services company Empower backs up these reports, finding that nearly half of Americans say the economy, rising cost of living, and the looming trade war are affecting their travel plans this year. The mood shift is tied to months of economic warnings, from concerns about job stability to fears of rising prices due to new tariffs on imports from countries like Brazil, Japan, and Canada, per the Post. As a result, consumer spending dipped in May, with more Americans choosing to save rather than splurge. This year, households plan to spend an average of $3,132 on summer travel, down 25% from last summer, according to an Ipsos survey for Generali Global Assistance.

Hotels are responding by rolling out discounts and local deals to attract road-trippers and "daycation" seekers, as national occupancy rates continue to slip. The trend is clear in the airline industry, too—major carriers including Delta are reporting slower main-cabin bookings, though first- and business-class demand remains steady. For many, vacations now simply mean thriftier choices: skipping pricier destinations, packing snacks, and stretching budgets with credit card points.

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