The 2025 holiday travel season is shaping up to be the busiest in half a decade, yet it’s coming with a twist: Americans want to travel more, but they’re planning to spend significantly less. That’s the push-and-pull captured in Deloitte’s new 2025 Holiday Travel Survey, which landed this week and highlights a shift that airlines, hotels, and the broader tourism ecosystem will be feeling throughout the winter.

According to the report, 54% of Americans plan to travel between Thanksgiving and mid-January, marking a five-point jump from last year. That’s a meaningful uptick in demand—especially after several seasons of uneven recovery. But the enthusiasm is tempered by rising economic strain: travelers are trimming itineraries, cutting extras, and shaving down budgets, with average planned spending dropping to $2,334, an 18% year-over-year decline.

In other words, the desire to roam is back, but the wallets aren’t quite in the same festive spirit.

Holiday travel intent rises as budgets fall

Deloitte surveyed 3,896 Americans, with just over half qualifying as holiday travelers. And while many intend to pack their bags this year, 31% say their financial situation has worsened over the past 12 months—up notably from last year’s 26%. That shift is driving a more frugal mindset across nearly all income brackets.

Travelers expect to take fewer trips overall—1.83 versus 2.14 last year—and spending cuts are wide-ranging. More people are opting to stay with friends and family instead of booking hotels, and high-income travelers (typically the industry’s reliable spenders) are pulling back more aggressively than any other bracket. Among those earning $100,000+, the number of trips planned has dropped from 2.5 to 1.9, and 16% are slashing their longest-trip budgets.

Generational differences are especially striking. For the first time, Gen Z and millennials combined will make up half of holiday travelers. But Gen Z—often seen as the “experience-first” demographic—is cutting the deepest, reducing holiday travel budgets by a staggering 31% year-over-year. Even their retail spending shows the same trend, according to Deloitte’s Holiday Retail Survey.

The only category bucking the downward trajectory? Boomers, who—perhaps enjoying more stable finances—plan to increase their travel spending by around 4%.

How travelers plan to save this season

A clear pattern emerges throughout the data: travelers are looking for ways to stretch their budgets without giving up the trip entirely.

They plan to downgrade:

• in-destination spending
• accommodation categories
• flight options and upgrades

And they’re increasingly choosing to drive. This year, 29% say they’ll opt for a road trip instead of flying for their longest holiday journey, up from 21% in 2024. The primary reason? Saving money.

At the same time, the share of Americans planning to fly at all during the season has dipped from 55% to 47%. Even loyalty can’t fully offset the belt-tightening trend: while 37% say they’ll still choose the lowest-price fare on their preferred airline, they’re not splurging on seat upgrades or add-ons the way they did in previous years.

Hotels and activities feel the pressure

With more travelers staying with friends and relatives, lodging demand could soften. Middle- and high-income travelers are planning fewer hotel nights, though low-income respondents show a slight increase.

When travelers do choose hotels, price dominates the decision-making process (63% rank it as one of the top factors), followed by service levels and loyalty perks. But the willingness to spend on experiences seems to be fading: participation in tours, attractions, guided activities, and public events is expected to decline across the board.

One bright spot in the otherwise cautious landscape is the rise of “laptop luggers”—travelers who work during their holiday trips. Nearly half of employed travelers expect to work on their longest holiday getaway. This group spends more, takes more trips, and stays longer, making them a valuable audience for hotels and destinations that cater to hybrid travel.

GenAI becomes the newest travel companion

If there’s one area where holiday travelers aren’t cutting back, it’s digital tools. Generative AI’s influence continues to grow, with 24% of respondents planning to use GenAI to help craft their holiday itineraries—triple the rate from 2023.

Millennials and Gen Z are leading the charge, relying on GenAI for:

• activity recommendations
• destination research
• accommodation options

Interestingly, the conversion from research to actual bookings is highest in restaurants—suggesting GenAI might become the most influential digital “foodie guide” before it becomes the go-to engine for flights and hotels.

Inside the luxury segment

Despite overall spending cuts, the luxury travel segment remains resilient—and in some ways, more defined. Roughly one-quarter of surveyed travelers fall into the “luxury” category, meaning they’ve stayed in a high-end property in the last two years and booked $400+ nightly rates in 2025.

What’s emerging is a more nuanced definition of luxury:

• Gen Z equates luxury with amenities
• Millennials with on-property dining
• Boomers with spectacular locations

Luxury travelers are also more likely to book first-class seats and place greater weight on service quality and brand recognition when choosing accommodations.

Conclusion: A softer season, but a smarter one—and a sign of where the market is heading

The 2025 holiday season won’t be the boom that airlines and hotels hoped for, but it also won’t be a downturn in demand—just demand reshaped. What we’re seeing here mirrors patterns from Skift’s Travel Health Index and McKinsey’s 2025 Tourism Outlook: travel isn’t slowing; it’s evolving.

Consumers aren’t giving up travel. They’re simply navigating economic reality by trimming—not canceling—plans, leaning into loyalty where it matters, and replacing premium choices with practical ones. Road trips over flights. Free activities over ticketed events. Staying with family instead of booking another three-star hotel.

This mirrors trends already visible among major players:

• Airlines like Delta and American have noted softening domestic demand but resilient premium cabin bookings.
• Hotel chains such as Marriott and Hilton are reporting strong luxury and upper-upscale performance, even while midscale segments flatten.
• OTAs, including Booking.com and Expedia, continue investing heavily in AI-driven trip planning because that’s where younger travelers now expect the journey to begin.

The Deloitte data simply reinforces what the industry already feels: travelers aren’t retreating—they’re reprioritizing. And the brands that adapt to that shift, especially by offering flexible pricing, strong loyalty incentives, and AI-enhanced planning, will be the ones best positioned for 2026.