Despite consistent travel frequency, a quiet transformation is taking place in consumer behavior: people are becoming more cautious with spending and reassessing what they value most. This evolving mindset signals a new phase in how households allocate their budgets. According to the 2025 U.S. Consumer Travel Report by Phocuswright, the average annual expenditure on travel has decreased, even though the number of trips taken remains steady. The data shows that if airfares rise too high, many travelers would opt for road trips instead—or choose not to travel at all in favor of spending on other necessities or discretionary goods.
The market is also seeing a generational shift: younger individuals are entering the travel demographic in greater numbers, while older, more experienced travelers are gradually stepping back. These newer travelers tend to be more budget-focused and frequently use online travel agencies (OTAs) to compare prices and find deals.
Although core travel components like flights and accommodations are still being booked at similar rates, underlying behaviors in planning and decision-making are changing. Travelers report dedicating considerable time to researching trips, but reliance on general search engines is declining—likely due to the growing use of AI-powered tools that streamline information gathering.
Booking patterns reflect this shift: indirect channels such as OTAs and third-party platforms are gaining ground, indicating a stronger preference for options that offer price transparency and comparison. Subtle changes in lodging selections and destination choices further suggest rising financial prudence, with decisions increasingly guided by cost-effectiveness and perceived value.
Travel continues to show resilience, but the forces influencing it are evolving rapidly. Consumers are making deliberate trade-offs, adopting smarter technologies, and placing greater emphasis on value than ever before.
— news from PhocusWire
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When travel isn’t first: How economic strains are changing consumer behavior
Behind steady travel rates, a quiet shift is underway: Consumers are spending more cautiously and rethinking what matters most. Shifting priorities signal the start of a new spending reality. n nAccording to Phocuswright’s latest travel research report U.S. Consumer Travel Report 2025, average annual spend has declined, while the number of trips remains unchanged. In the new data, travelers indicated they would consider road trips in lieu of air travel should airfare become too expensive, or not travel at all to spend on other goods and services. n nThe report also reveals that there are slightly more younger travelers entering the market and older, more seasoned travelers are beginning to exit. These younger travelers are more cost-conscious, leveraging online travel agencies (OTAs) more for their price comparison capabilities. n nWhile major trip components continue to be booked at similar rates, the way travelers research, plan and choose is shifting beneath the surface. Travelers report spending significant time researching trips, but general search usage is declining, likely reflecting the rise of artificial intelligence-powered search tools. Search behaviors, booking channels and even lodging preferences point to a more deliberate and price-conscious traveler. n nIndirect booking channels such as OTAs and intermediaries gained share, suggesting travelers are seeking value and comparison options. Subtle shifts in lodging and destination choices also hint at growing economic caution, with choices driven by price and value. n nTravel remains resilient, but the forces shaping it are shifting fast. Consumers are weighing trade-offs, embracing smarter tools and demanding value like never before.