Holiday demand is strong, yet shifting behaviour signals tighter wallets — and new challenges for hotels
Nov 13, 2025
The latest survey from Deloitte finds that more Americans plan to travel this holiday season than in recent years, but their spending expectations are falling — suggesting a more cautious travel market ahead.
Key takeaways
- Increased travel intent: 54% of respondents plan to travel between Thanksgiving and mid-January, up 5 percentage points from 2024.
- Reduced budgets: Average planned spending is about $2,334, down 18% year-over-year.
- Financial strain even among high earners: Nearly one-in-five high-income travellers report being worse off financially than a year ago, leading to trip reductions.
- Gen Z and millennials leading travel but also cutting back most: These groups make up around half of holiday travellers, but Gen Z in particular plans to reduce budgets significantly (-31% year-over-year).
- Mode and accommodation shifts: Fewer travellers expect to fly (47% vs 55% last year), with many opting to drive. Mid- and high-income travellers plan fewer hotel stays; low-income travellers may increase theirs slightly.
- Rising use of generative AI in travel planning: 24% expect to use generative AI tools this season, up sharply from previous years.
- Luxury travel persists amid caution: About 26% qualify as “luxury travellers,” signalling continued interest in upscale stays despite broader spending pullbacks.
Get the full story at Deloitte
