Holiday Travel 2025: The New Reality of the Global Traveler

A season shaped by enthusiasm, caution, and changing financial confidence

The end-of-year travel season has always been a reliable indicator of consumer sentiment, but the Deloitte Holiday Travel Survey 2025 reveals an especially telling moment: people still want to travel, yet they are becoming increasingly strategic about how, when, and how much they spend.

Although more than 50% of Americans plan to travel this holiday season, the highest figure in five years, the dynamics behind those trips are shifting. The study, based on a nationally representative sample of 3,896 respondents, shows an industry facing a traveler who is more intentional, digitally driven, and financially cautious.

A traveler who wants to move… but more carefully

The report highlights a dual reality: strong travel intent paired with budget-sensitive behavior.

Average trips per person drop from 2.14 to 1.83, the steepest decline in years.
Average holiday travel spending falls 18%, down to USD $2,334.
31% of respondents say they are financially worse off than last year, compared to 26% in 2024.

These financial pressures are redefining decisions: shorter trips, more road travel, and a shift away from full-service hotels dominate the season.

The rise of the ‘cautious class’

One of the study’s most important contributions is the identification of the “cautious class”: high-income travelers earning above USD $100,000 who, despite financial capability, feel economically strained and are changing their travel behaviors.

19% say their financial situation has declined year over year.
80% are making deliberate adjustments to travel more affordably.
This segment is reducing trip length, cutting back on activities, and opting for lower-service hotels.

Because this group historically fuels premium spending, its caution sends a ripple effect across airlines, resorts, and high-end experience providers.

A generational shift: Millennials and Gen Z take the lead

For 2025, generational dynamics become impossible to ignore:
Millennials and Gen Z now account for half of all holiday travelers.

Their influence is reshaping the industry:

Millennials report the highest holiday travel budget at USD $2,602.
Over 50% of Gen Z rely on short-form video as their main source of travel inspiration.
Use of generative AI for travel planning has grown 1.5x since 2024.

These groups don’t just travel differently, they research, compare, and book differently, forcing brands and destinations to adapt rapidly.

Fewer flights, more road trips… and fewer paid activities

The survey outlines clear shifts in travel behavior:

Only 47% plan to fly, compared to 55% in 2024.
57% will drive instead of flying to cut costs.
Participation in paid activities is dropping, particularly among high-income travelers who previously drove demand for tours, attractions, and premium experiences.

These patterns have direct consequences for local operators, cultural attractions, and tourism-intensive destinations.

Luxury travel endures, but with a new mindset

Despite economic pressure:

1 in 4 travelers qualifies as a “luxury traveler.”
This group is twice as likely to fly first class.
They prioritize service quality, design, personalization, and loyalty benefits.

The message is clear: luxury isn’t disappearing, it’s evolving. Travelers are choosing fewer but more meaningful high-end experiences.

A season that redefines priorities

Deloitte’s findings paint a portrait of the contemporary traveler:
deeply motivated to travel, emotionally attached to tradition, but increasingly mindful of financial pressure and value perception.

For the tourism industry, the takeaway is unmistakable:

It is no longer enough to attract travelers. Brands must understand their financial reality, motivations, and digital behaviors to remain relevant.

Holiday Travel 2025 marks a turning point, one that rewards those who can adapt with empathy, agility, and data-driven intelligence.