Fewer Americans are planning summer vacations this year as travel costs have risen, according to a new Deloitte report published Tuesday.
Only 45% plan to take a summer vacation involving paid lodging this year, the lowest number in six years, according to Deloitte’s survey of 4,000 Americans.
About a third of those who aren’t traveling said they cannot afford a vacation, and that travel had become too expensive.
But those who are still taking trips appear determined to splurge.
Travelers are putting aside higher budgets for vacations. On average, they expect to spend about $4,050 on their longest summer trip, up 17% from last year, according to Deloitte’s survey.
“Amid pricing pressures, those who are packing their bags this summer intend to spend, indicating that many are putting a premium on experiences,” Kate Ferrara, Deloitte’s US transportation, hospitality, and services sector leader, said in the report.
However, not everyone will be switching off entirely. Deloitte found that about 34% of those surveyed plan to work during their longest summer trip, up from about 23% last year. Millennials are the most likely to do so, with 57% saying they plan to work on vacation.
Travelers are also increasingly willing to pay for comfort upgrades.
Deloitte found that more consumers planned to purchase premium airline seats, upgraded tickets, and better hotel locations compared with last year.
International travel demand also appeared to strengthen among travelers who are still vacationing. About 32% of surveyed travelers planning to fly said they intended to take an international flight this summer, up from 27% a year ago.
Younger travelers are playing an outsized role in shaping travel trends. Millennials now account for nearly a third of travelers, Deloitte said, while Gen Z and millennials both expect to take more trips this summer than they did last year.
The survey also highlighted the growing role of artificial intelligence in travel planning. About 25% of travelers said they planned to use generative AI tools to help organize trips, up from 15% last year.
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