The holiday travel season in the United States is facing a significant slowdown as families, including high-income households, cut back on trips and tighten their budgets. According to a recent report by Deloitte, the average number of planned holiday trips has decreased to 1.83 from 2.14 last year, while travel budgets have shrunk by 18% to an average of $2,334. This shift reflects broader financial concerns, with nearly 20% of households earning over $100,000 annually reporting a decline in their financial well-being compared to the previous year. About 80% of these high-income travelers are opting for more affordable travel options. The prolonged US government shutdown has further exacerbated the situation, forcing airlines to reduce flights and delaying approximately 3.2 million passengers. Travel companies, including Delta Air Lines, United Airlines, and Marriott International, have noted strong demand for premium services in recent months. However, this trend may be reversing as high-income travelers, who typically spend more and travel farther, adjust their plans. Millennials, who represent 34% of luxury travelers, are leading the way in cutting back on trips this year. Interestingly, they are also at the forefront of adopting generative AI for travel planning, with usage increasing 1.5 times since 2024. While travelers primarily use AI to discover activities and attractions, they are most likely to act on restaurant recommendations.
Fewer holiday trips, tighter budget: Families cut back on travel, report says
