Budget Boom, Shared Experiences, and Changing Destinations

Travel is back—bigger, longer, and more intentional. After years of pandemic disruption, Americans are eager to explore, leading to record budgets and diverse itineraries. But rising prices, overtourism, and climate concerns shape the choices travelers make.

Americans Are Traveling More and Spending More

An IPX1031 survey found that 92% of Americans plan to travel in 2025. Of these, 56% plan to travel more than in 2024, 30% expect to travel the same amount, and only 14% plan to travel less. Travel has become a financial priority: 60% of respondents rank travel as a top spending category and 79% are budgeting for it. The average travel budget for 2025 is US$10,244, nearly double the 2024 average of US$5,300. Nearly two‑thirds of Americans plan to use points or rewards to offset travel costs.

Trip lengths are also changing. More than half (57%) of travelers plan trips longer than in 2024. When asked about vacation duration, 27% plan a seven‑day trip, 21% will travel less than a week, 35% plan 10–21‑day trips, and 17% intend to travel more than a month. Americans are equally split between domestic and international itineraries: 86% plan to travel out of state and 50% plan to leave the country. Business travel is bouncing back too, with 36% of respondents planning a work‑related trip. Flexibility allows for blended trips: 54% will take a staycation, and 41% plan a workcation.

Shared Experiences and Cultural Immersion

Travelers increasingly seek connection and authenticity. The Points Guy reports that travelers are allocating more budget toward experiences and nightlife, which account for 12% of tourism sales, the highest share in at least five years. Many younger travelers value authentic experiences over luxury flights; more than half of Gen Z respondents and 47% of millennials say they would save money on flights or accept layovers rather than sacrifice experiential elements. Trip lengths are extending: the average vacation increased from 4.5 days in 2020 to 5.5 days in 2024. In the first quarter of 2024, 15.9 million people left the United States, and younger generations booked international trips as often as domestic ones. Social media shapes planning: 42% of Gen Z travelers and 26% of millennials use TikTok to plan trips.

Travelers are also more interested in shared experiences such as concerts, sports events, and festivals. The Points Guy notes that Taylor Swift’s “Eras Tour” alone generated an economic impact equivalent to 53 Super Bowls for host cities. Hotel demand surged in markets hosting concerts, and event‑driven tourism is at an all‑time high. Event travel not only boosts local economies but also creates lifelong memories—a reflection of the broader shift toward experiential value over material goods.

Overtourism, Pricing Pressures, and Climate Concerns

As travel demand rises, so does concern about sustainability. Deloitte’s 2024 summer travel survey cited by The Points Guy found that 31% of respondents believe travel is too expensive, up from 24% in 2023. Inflation, currency fluctuations, and post‑pandemic price hikes contribute to this perception. Meanwhile, international visitor spending is projected to grow 16% globally in 2024. Travelers face higher lodging, food, and recreation costs: in June 2024 the U.S. travel price index rose 19.2% above 2019 levels, with recreation costs up 17.2%. These figures illustrate why budgeting and points hacking are so popular.

Climate change is impacting destinations and traveler behavior. Extreme weather events, wildfires, and rising sea levels threaten tourism hot spots. Overtourism stresses local infrastructure, prompting governments to introduce visitor caps and conservation fees. Conscious travelers respond by choosing shoulder seasons, off‑the‑beaten‑path locations, and eco‑friendly accommodations. They support local businesses—73% of global travelers say supporting small businesses is important—and seek one‑of‑a‑kind handmade goods to remember their trips.

Intentional Travel for a Changing World

The travel landscape of 2025 is dynamic and optimistic. Americans are allocating unprecedented budgets to explore the world, emphasizing meaningful experiences and shared moments over traditional luxuries. Social media platforms influence destination choices, while loyalty programs and flexible work arrangements facilitate more frequent, longer trips. At the same time, pricing pressures and climate concerns drive travelers to plan carefully, support local communities, and seek sustainable options. By balancing adventure with responsibility, travelers can make the most of the opportunities ahead while preserving the destinations they love.