Key trends emerging as US holiday travel demand drops

What the new holiday travel shift means

Holiday travel in the U.S. is shifting fast, and the changes aren’t just about higher prices or busier airports. Travelers are rethinking how far they go, how much they spend, and even why they travel in the first place.

As demand cools, surprising new trends are starting to pop up, some driven by tighter budgets, others by changing lifestyles and fresh travel priorities. These shifts are creating a holiday season that looks very different from years past.

Travelers are cutting back on the number of trips

Many Americans plan to take fewer trips this holiday season, reducing the frequency of their travels. A Deloitte survey shows the average number of planned holiday trips per person has declined from 2.14 to 1.83 compared to last year.

This pullback suggests people are prioritizing quality or necessity over quantity. The decline in trip count reflects how financial concerns are reshaping not only how much people spend, but also how often they travel.

Tighter travel budgets are reshaping decisions

Budget tightening is having a major impact on holiday travel decisions as consumers become more price-sensitive. The average holiday travel budget now sits around $2,334, which is 18 percent lower than in 2024, according to Deloitte.

Many travelers are cutting back on in-destination spending and are hesitant to splurge on luxurious upgrades or longer stays. This more cautious spending mindset could weigh on airlines, hotels, and tour operators.

High‑income travelers are pulling back

An unexpected trend is emerging: even high-income travelers are pulling back on holiday spending. Nearly one in five households making over $100,000 a year say they are financially worse off than a year ago.

Deloitte’s data shows that these travelers are less likely to fly in premium cabins, which could pressure airlines that have invested heavily in luxury seating. This shift suggests that economic headwinds are broad-based.

More road trips and fewer flights

A clear trend is that more people plan to drive instead of flying for their holiday trips this year. Deloitte reports that a growing share of travelers are choosing road trips as a cost-saving measure.

This not only reduces airline traffic but also shifts demand toward car rentals, gas stations, and roadside lodging. The move toward road travel reflects a more cautious and pragmatic travel mindset during economic uncertainty.

Domestic over international travel

Domestic travel is gaining favor while international bookings are cooling off as consumers tighten their belts. A survey-based report shows that outbound bookings to major international destinations like Europe, Mexico, and Asia are declining.

Travelers seem to be opting for shorter, more affordable trips within the U.S. rather than stretching their budgets for overseas vacations. This shift could affect international tourism markets and reallocate demand to domestic infrastructure.

Flexible work reshaping booking patterns

Flexible working arrangements are reshaping how and when people travel for the holidays. According to Hopper’s 2025 Holiday Travel Shopping Index, more travelers are departing on nontraditional days.

With remote work or hybrid schedules, people have more freedom to book flights on weekdays, earlier in the week, or at less congested times. This decentralization of travel days changes how airlines and travel companies need to plan capacity.

Generative AI in travel planning

Generative AI is playing a growing role in how travelers plan their holiday trips, especially as they become more cost-conscious. Deloitte finds that usage of AI tools for travel planning could rise to 24% this season, up significantly from just two years ago.

Travelers are using this technology to research activities, find restaurant ideas, and even tailor itineraries that maximize value. By leveraging AI, consumers can more easily compare costs, optimize budgets, and personalize trip experiences.

More working during trips

A rising share of holiday travelers plan to work at least part of their trip, blending business with leisure. Deloitte’s research shows that “laptop luggers” are increasingly common; about 44% of employed travelers say they will work on their longest trip.

These travelers also plan to take more trips or stay longer, since they can offset costs by working remotely. This dual-purpose travel behavior helps reduce the financial burden of vacationing while maintaining some productivity.

Decrease in premium airfare demand

Demand for premium and business-class seats is softening, and that could challenge airline revenue strategies. Deloitte data indicates fewer travelers plan to fly premium this holiday season, as high-income consumers become more budget-conscious.

This retrenchment comes just as airlines have invested in more premium cabin capacity, lounges, and enhanced services during the pandemic rebound. If fewer people book high-margin seats, airlines may face tighter margins.

Hotel rates are falling

Hotel pricing is adjusting to weaker demand, as seen in recent trends across the leisure travel market. The Leisure Travel Index reports that hotel rates dropped around 8% in Q1 of 2025, signaling that operators are cutting prices to stimulate bookings.

This price softening reflects a more cautious consumer base, where fewer people are willing or able to pay premium prices. Lower room rates could make holiday stays more accessible for budget travelers, but they also squeeze hotel profitability.

Value over luxury in travel preferences

Across holiday traveling consumers, there’s a growing emphasis on value and affordability rather than luxury splurges. As budgets tighten, travelers are favoring cost-effective experiences, budget lodging, and economical transport.

This shift means that travel brands need to align offerings with value-conscious consumers, focusing on deals, efficient trips, etc. The trend underscores a broader movement: holiday travel is becoming less about status and more about purpose.

Don’t forget to act smart and save big with travel dupes (and still feel like you’re on holiday).

Compressed booking windows and deal-seeking

Travelers are waiting longer to book their holiday trips, opting to watch for deals and promotions. Data from Hopper indicates that consumers are holding on to their booking decisions, with demand shifting around major deal events like Black Friday.

This compression of booking windows reflects a more opportunistic, deal-driven mindset, where people want to lock in value rather than overcommit early. Travel companies and airlines must adapt by offering timely discounts and flexible options.

The internet is also talking about how Generative AI is redefining leisure travel and inspiring a new wave of curious travelers.

What do you think about the way holiday travel is changing this year? Let us know your thoughts in the comments, and don’t forget to like if you’re following the trend.

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This slideshow was created with AI assistance and human editing.