Even with increasing economic concerns, consumers aren’t planning to cancel their trips. However, they are
hunting for bargains
—and eager to discover them on the open highway.
Approximately 53% of American consumers intend to take vacations this season, an increase from 48% compared to last year.
Deloitte researchers reported
Tuesday. Analysts noted a particular enthusiasm for short, more frequent getaways nearer to home, involving travel by car, as tourists adopt “a more economical strategy” this year.
Chris Narvaez, aged 45, was planning to travel to London and Rome this coming summer.
Fares to Europe have dropped by 8%.
According to the travel booking platform Hopper, however, the human resources director based in New York City mentioned that he plans to “hit the pause button” on international trips.
Amidst the fresh demands for visa applications, issues under the present government, and difficulties with air traffic control,
close calls at nearby airfields
“I don’t feel as at ease with this as I would when boarding an airplane,” he commented, referring to it.
updated ID
and
entry rules
along with
increased customs stops
Instead, he’ll remain on the East Coast, making trips to places like Woodstock, New York; Washington, D.C.; and Martha’s Vineyard, Massachusetts. He will be driving around with friends and his 15-year-old Shepherd-mix dog, Eli.
Alexisa Humphrey, who owns Sugar and Spice Travels in Lebanon, Tennessee, mentioned that her clientele continues to explore new places. However, similar to Narvaez’s experience, “their travels now consist of shorter, more economical getaways,” she explained, reflecting many of the same worries about traveling. She added that several clients have opted to cancel their flight reservations in favor of driving or taking trains instead.
Highway driving
remains far more dangerous
Than commercial air travel or passenger rail, according to federal data. However, recently
air traffic control issues
at Newark Liberty International Airport have spooked many travelers, Humphrey said. Travel volumes at the busy New Jersey airport are
reduced by 20% compared to this period last year
On Tuesday, NBC News reported this information.
Price is another consideration. Although return trips for domestic flights are
hitting three-year lows
According to Hopper, driving usually stays far more economical. The cost of gas contributes to this.
about 40 cents cheaper
heading towards Memorial Day with more people traveling compared to last year, as stated by AAA, which
anticipates a historic total of 45.1 million individuals
To journey a minimum of 80 kilometers away from home during the extended holiday weekend. This represents an increase exceeding 3% compared to 2024, reaching its peak point within two decades.
American consumers have been reducing their travel budgets as
price-hike headlines proliferate
and
economic sentiment tumbles
to record low levels. In March, travelers informed Deloitte that they intended to spend an average of $3,987 on their primary summer trips, approximately 13% higher compared to the previous year. However, just two weeks after that,
frenzied tariff news rattled stock markets
— that estimate decreased to $3,471, which is less than 1% higher than in 2024.
Latisha Hunt, a real estate agent and former Air Force member based in Biloxi, Mississippi, has been a client of Humphrey’s. Recently, she modified her summertime arrangements. Instead of spending seven days in Panama at the start of July as initially planned, she cut it down to just three days. Additionally, instead of flying out from a nearby smaller airport which would have required less travel time, she opted to make a longer journey of 5½ hours to reach Atlanta’s airport for departure.
It’s more cost-effective and lets me have better control over my entire journey,” explained Hunt, aged 39, who also intends to drive around various states like Alabama, Tennessee, Ohio, and Michigan in the upcoming months. “By staying at family and friend’s places en route, I can maintain lower expenses and infuse each trip with a deeper sense of connection and significance.
Hunt won’t be alone on the roads. According to a survey conducted this winter by the gas station video network GSTV among drivers fueling up at pumps,
56% indicated their intention to increase driving.
During their summer holidays, people spent more time relaxing compared to the previous year; 54% opted for driving instead of flying to cut costs.
A number of summer road trippers have more limited finances. According to research conducted by Bank of America, traveling by car tends to be
the leading form of transportation
For holidaymakers from lower- and middle-income brackets this summer – favoured by at least 64% within each category, as opposed to under 55% among those earning more.
The positive aspect is that
rental car costs
dropped around 2.1% in April compared to the previous year, as per federal statistics, and Hopper anticipates they will remain relatively stable with 2024 levels over the summer. However, since significant rental car companies have adapted to reduced demand, some—including
Avis Budget Group
and
Hertz
—are cutting down their fleets, potentially limiting the variety of vehicles available.
Motorists might also have to set aside additional funds for airport and hotel parking, as numerous establishments add charges that can vary from a couple of bucks up.
$80 a day
Hotels that cater conveniently towards drivers often provide complimentary daily parking when located near main roads or away from city centres, yet they might charge for an overnight stay.
Can still reach up to $100 per night.
at high-demand lots.
In fact, road trippers are a fast-growing slice of accommodation operators’ business. Hotel parking revenues surged 18% between 2019 and 2024, according to real estate and investment firm CBRE. Hotel revenue overall grew less than 7% over the same period.
This shouldn’t be seen as an increase in people driving to hotels,” explained Robert Mandelbaum, who leads hotel research at CBRE. “Instead, it’s due to hotels increasing their parking fees and more establishments now implementing charges where they didn’t before the pandemic.
The article was initially released on
ChinPao
