With economic uncertainty looming and travelers watching their wallets more closely, one thing is clear: people aren’t giving up their vacations; they’re just getting smarter about how they budget.
A 2025 Club Wyndham survey found that 70% of Americans plan to travel just as much, or even more, than last year despite rising travel costs.
Historical data shows that tighter budgets don’t mean Americans stop traveling. “Typically, what we see is that Americans will continue to travel, but they’ll modify their trip in ways that reflect the extent to which they’re concerned about finances,” says Chris Davidson, Executive Vice President of MMGY Travel Intelligence.
“For example, they may downgrade the hotel they book, eat in a few nights rather than go out every night, drive instead of fly, or potentially reduce the length of their trip to save a few bucks.”
It’s not traveling less, but traveling differently, like shorter trips, closer-to-home destinations, or flying mid-week.
The Rise of the Budget Bourgeoisie
Travelers aren’t forgoing trips, but they are becoming more strategic about finding experiences that offer clear, upfront value. Leading the charge on affordable travel are Gen Zers and Millennials, the two generations hardest hit by cost-of-living increases. But they’re also the ones who are changing the perspective on travel.
“Millennials paved the way and created this sort of idea that travel is a right, not a privilege,” says travel analyst Lindsey Roeschke.
Unlike their Boomer and Gen X parents, these younger generations aren’t booking roadside motels and packaging their own sandwiches.
Instead, they’re using brand loyalty rewards programs and credit card points to keep the nice digs at a more reasonable price point. They’ll also pay more for what’s more important to them and save on what isn’t.
Jesse Neurgaren, Founder & CEO of Dollar Flight Club, adds, “The smartest travelers right now are the ones staying flexible, doing their homework, and using tools to stay ahead of the best deals. It’s not about cutting back, it’s about traveling better.”
For Gen Z traveler Anthony Tes, he’ll save on transportation — choosing to fly a budget airline or walking in-destination — and splurge on great food and experiences. “With {all these} rising costs, everything becomes a ‘YOLO trip.’” says Tes.
Tour Operators Offer Planning Ease
The DIY approach to travel planning is being replaced by curated tours for financial predictability. Small group and guided tours bundle accommodations, transportation, activities, and often meals into one upfront cost, eliminating the guesswork that can lead to overspending.
Tour operators work with suppliers to secure rates well in advance and pass on these fixed prices to travelers. Trafalgar’s fully coordinated tour packages include handpicked hotels, VIP access to landmarks, and expert-led experiences, all for a single, transparent price.
“Amid a fluctuating economic climate, guided tours are a guaranteed way to ‘know before you go’ when navigating rising costs. The price for hotel, transport, excursions, and meals is locked in once you click the ‘book’ button, which offers reprieve and certainty for travelers in precarious times,” says Melissa DaSilva, Deputy CEO of Trafalgar.
For budget-conscious travelers, Costsaver offers packages that start at $100 per day, making it easier for younger and solo travelers to see the world without breaking the bank.
All-Inclusive Resorts Provide Cost Certainty
The appeal of a single, upfront price has significantly boosted the popularity of all-inclusive resorts. A 2025 MMGY Travel report found that 63% of U.S. travelers say they are more likely to choose all-inclusive vacations specifically to manage costs better and avoid unexpected expenses.
“One major trend we’re seeing is travelers leaning heavily into affordable beach all-inclusives, especially in places like Cancún, Belize City, and Cartagena. These destinations offer incredible value: travelers can bundle flights, hotels, meals, and activities into one price, often saving hundreds compared to a traditional à la carte vacation,” says Neugarten.
All-inclusive luxury properties allow for indulgence without the stress of budgeting every meal, activity, or tip. In the Caribbean, Sandals Resorts recently opened Sandals Saint Vincent and the Grenadines, featuring overwater bungalows and innovative dining concepts, like communal, family dinner parties with other guests — included in one rate.
Their adults-only model remains popular, particularly with honeymooners and dual-income, no-kids travelers, otherwise known as DINKS. For families, Beaches Resorts offers certified nannies and nurseries, making it ideal for those who want to escape without the added worry of childcare costs.
“Complimentary kids camps and nurseries staffed by certified nannies — this should be intuitive when considering not only what families want but what they need on vacation — and simply put no one delivers this level of value quite like Beaches,” says Adam Stewart, Executive Chairman of Sandals Resorts + Beaches Resorts.
Road Trips Top the Trend Charts
Road trips were the most popular form of travel in 2024 and are expected to be one of the hottest travel trends for 2025, with 34% of Club Wyndham survey respondents saying they plan to take one.
This factors in that a quarter of Americans report that they are interested in traveling near their home, and nearly two-thirds believe they have not seen enough cities or attractions throughout the United States.
The allure of a road trip is that you can see multiple cities, towns, and even states in a single day’s drive, especially in certain parts of the South and Northeast. With air costs continuing to rise, road trips offer lower costs along with spontaneous itineraries.
In the face of economic pressures, travelers are finding new ways to make their travel budgets go further.
