Behind steady travel rates, a quiet shift is underway: consumers are spending more cautiously and rethinking what matters most. Shifting priorities signal the start of a new spending reality. According to Phocuswright’s latest travel research report U.S. Consumer Travel Report 2025, average annual spend has declined, while the number of trips remains unchanged. In the new data, travelers indicated they would consider road trips in lieu of air travel should airfare become too expensive, or not travel at all to spend on other goods and services.
The new report also reveals that there are slightly more younger travelers entering the market and older, more seasoned travelers are beginning to exit. These younger travelers are more cost-conscious, leveraging OTAs more for their price comparison capabilities.
While major trip components continue to be booked at similar rates, the way travelers research, plan, and choose is shifting beneath the surface. Travelers report spending significant time researching trips, but general search usage is declining, likely reflecting the rise of AI-powered search tools. Search behaviors, booking channels, and even lodging preferences point to a more deliberate, and price-conscious, traveler.
