Rising travel costs are forcing Americans to rethink where they go, how they pay, and what financial sacrifices they’re willing to make for a trip.
April 13, 2026
This year, it’s anything but. Airfare alone has risen over 27% since 2020, and hotel rates have followed, pushing once-standard trips further out of reach for many Americans. For many households, that means a vacation isn’t just about where to go—it’s about whether they can go at all.
To better understand how people are navigating these decisions, BestMoney surveyed 1,000 U.S. adults about their summer travel plans, spending expectations, and financial trade-offs. The findings suggest that while Americans still deeply value travel, they’re making more calculated — and sometimes difficult — decisions to afford it.
Scrolling through your Instagram feed may make it seem like all your friends are kicking it in Cabo or backpacking through Brussels. But the truth is, a significant share of Americans are forgoing summer vacations altogether.
While nearly a quarter (21%) have already booked a trip, a larger share (35%) plan to travel but have not booked yet. Another 18% remain undecided. At the same time, 22% said they do not expect to travel this summer, showing that vacations are out of reach for many households.
Older Americans are less likely to travel, with 35% of baby boomers saying they have no plans to take a trip, compared to just 13% of Gen Z. This could be due to baby boomers having more responsibilities keeping them at home, or could reflect how the aging population is experiencing mobility issues that may make travel unpleasant.
Younger groups are also more proactive in booking: 29% of Gen Z and 22% of millennials have already secured trips, versus only 20% of baby boomers. The older generations are more comfortable figuring out their vacation on the fly, whereas the jetsetting younger generations need to know the plan ahead of time.
Although half of Americans reported higher travel budgets than last year, the rest of their bills come first. Saving money (16%), paying down debt (16%), and covering everyday expenses (14%) were consistent priorities over travel.
Though rising prices aren’t deterring most Americans from taking a vacation, they have to balance their budgets before booking an Airbnb. But when essentials become more expensive than ever, Americans have to choose between their trips and their necessities.
Lounging on the beach or hiking in an international forest can do more than just make new memories. A 2024 study from the Harvard School of Public Health found that spending more time outdoors can lower your blood pressure, improve your sleep, and support your mental health. But the Americans we surveyed didn’t need a study to tell them that–they already feel the benefits of getting out of the house.
A strong majority (76%) said taking a vacation is important for their mental health, and the same share reported that travel helps them feel balanced or recharged. Another 52% said travel was an essential way to connect with their romantic partners.
Because of these benefits, many Americans are willing to shape their budget around travel: 63% said that vacations are worth making financial sacrifices for, and another 67% prioritize vacations and experiences over material purchases. A minority (27%) were even willing to go into debt to fund their travel, rising to 33% among Gen Z and 30% among millennials.
However, not everyone feels comfortable making those trade-offs. Most Americans (81%) said traveling feels more expensive than it did a few years ago, and their feeling is correct — the average cost of travel has gone up 23% since 2019. In response, 25% set strict spending limits, 24% budget carefully, and 17% avoid travel altogether due to financial uncertainty.
Due to these factors, over half (53%) felt stressed while planning their summer trip. That rose to 63% among baby boomers, showing that despite being the wealthiest generation in American history, they’re still working to balance their budgets.
Americans also have to contend with their work responsibilities when planning a vacation. More than half of Americans (55%) feel pressure to work more to afford travel, including 67% of Gen Z, and 40% of baby boomers.
Due to the economic pressures surrounding travel, it’s no wonder that Americans are working more and harder than ever before to be able to afford their dream vacation. However, sometimes that work doesn’t even stop when vacation time rolls around.
Even once a trip begins, clocking out becomes a challenge for most Americans: 39% said it is harder to fully unplug while on vacation, and 9% expect to work frequently during their trip. That was even higher among millennials: 13% of the generation planned to work through their vacation.
By comparison, only 2% of boomers said they’d be checking emails and taking Zoom calls throughout the trip. While younger career professionals face labels such as “being lazy,” these statistics indicate that they’re under more pressure to be constantly available — even if their leisure time suffers because of it.
On the flip side, a majority of baby boomers are in retirement or are soon approaching it, so many don’t feel the need to answer work calls or emails while having fun in the sun.
The price of everything is going up, and travel is no exception. Americans are adjusting their travel budgets accordingly, even if they know they may overspend.
The largest share (26%) expects to spend between $1,000 and $1,999 on their main trip, followed by 20% planning to spend $500 to $999 and 19% budgeting $2,000 to $2,999. Another 24% anticipate spending $3,000 or more, representing the portion of Americans who can still splurge on their travel plans.
But the best-laid plans are the most likely to go awry. One-third of Americans (32%) said they expect to stay within their planned budget, but the same share (32%) admits they may exceed it. Another 25% have a loose budget, and 12% have not set a budget at all. In total, 67% of Americans are entering the summer without a firm spending limit. Come fall, they may feel the strain of their financial decisions.
Each generation takes a different attitude toward their vacation budget. About 33% of Gen Z expect to stay within their budget, compared to just 25% of boomers. But a third (33%) of Gen Z anticipate exceeding their budget, slightly lower than the 37% of boomers who said the same. While younger travelers may set clearer expectations upfront, every generation is capable of going over budget.
As the average American travel budget has less purchasing power than before, people are changing their plans. While some are canceling their travel outright, most are just shifting their expectations.
Here are the most common ways Americans are saving money on vacation:
Booking cheaper accommodations (35%);
Taking a shorter trip (32%);
Choosing a destination within driving distance (30%);
Choosing a less expensive location (29%);
Staying with friends or family (24%);
Traveling during the off-season (20%);
Taking fewer trips (16%).
A minority (12%) have decided not to travel at all due to costs. Only 12% say their travel plans have not been affected by rising prices.
Gen Z stands out as the most financially adaptive group. Nearly half of Gen Z (44%) plan to book cheaper accommodations, compared to just 15% of baby boomers. Additionally, 32% of Gen Z have already chosen a more affordable destination due to rising costs. This is almost double the share of baby boomers doing the same (17%).
But no matter their age, travelers are feeling the pinch. A majority of Americans report at least moderate financial concern about transportation (54%), lodging (52%), and unexpected expenses (51%). As a result, travel planning has become less about where people want to go and more about what they can realistically afford.
Even after drawing up a careful budget and picking an affordable destination, the money still has to come from somewhere. Paying upfront used to be the default method for many Americans, but rising costs and inflation make it harder for travelers to do so. Here are the methods they’re turning to instead.
Personal savings remain the most common approach, with 55% planning to use savings to cover travel costs. However, many are supplementing: 37% plan to use a credit card, 30% rely on their current paycheck, and 18% expect to use earnings from a side hustle.
Smaller but notable shares plan to use credit card travel rewards or points (16%) or buy now, pay later (BNPL) services (9%). Only 9% will use a dedicated travel savings fund, showing that most Americans lump travel into their general expenses.
Boomers are most likely to rely on personal savings at 51%, while millennials show a strong preference for credit cards at 39%. Millennials are also nearly twice as likely as baby boomers to use travel rewards or points (18% vs. 9%). Zoomers stand out for their adoption of alternative financing, with 14% planning to use buy now, pay later services compared to 9% of Americans overall.
Among younger travelers, traditional methods of financing vacations are coming second to newer, more flexible options. Though Zoomers and millennials may be able to spread out their payments over the course of months or years, BNPL plans have become notorious for high interest rates and raising people’s debt without improving their credit scores. What looks like a responsible decision in the short-term can have long-term consequences these travelers did not intend for.
Saving for a vacation can take months, and the spending doesn’t always end when you check out from the hotel. Some Americans choose to work overtime or deliver groceries to make extra money, while others decide to spread the cost out over several months. Here’s what Americans plan to do in order to make their vacations happen.
Over the past year, 38% reduced everyday spending to afford travel, while 25% worked extra hours or overtime. Others made longer-term sacrifices, including 17% who reduced contributions to savings, 17% who took on additional work or a side job, and 17% who postponed a major purchase or home upgrade. A smaller share dipped into more sensitive areas, with 9% using emergency funds and 8% even working while sick to preserve PTO for travel.
Younger travelers are making the most aggressive adjustments. Among Gen Z, 36% worked extra hours or overtime, 23% took on additional work or side jobs, and 10% reported working while sick to avoid using PTO.
They outpaced every other generation in terms of earning their vacation: only 25% of millennials, 20% of Gen X, and 13% of boomers worked extra hours to pay for travel. This could mean that Zoomers can be one of the hardest-working generations when they have a goal to achieve, or it could highlight the fact that among Gen Z, their only asset is their labor.
In total, over two-thirds (77%) of travelers plan to finance their vacations through credit cards, personal loans, or BNPL plans. While 19% plan to pay off these expenses immediately, here’s how long others plan to be in repayment:
Less than one month (14%)
Two to three months (22%)
Four to six months (12%)
Six months or more (10%)
However, nearly a quarter (23%) do not plan to finance their travel whatsoever. These Americans prefer to pay up front and avoid the interest and fees associated with financing their plans.
Americans have not lost their appetite for travel, but they have become more strategic about how they make it happen. People of all ages continue to prioritize vacations for mental health and connection, but rising costs are forcing travelers to rethink their plans. Whether they choose to stay with family or only go within driving distance, vacationers are finding budget ways to get away.
For example, they’re blending savings with credit, picking more affordable accommodations, and making everyday financial trade-offs to preserve their ability to take time off.
For those planning a trip, the takeaway is clear. Start budgeting early, compare costs across destinations and timing, and take advantage of tools like rewards programs or off-peak travel. Most importantly, set realistic expectations about what you can afford. With the right planning, you can still go on your dream vacation — it just requires more intention than it did a few years ago.
BestMoney surveyed 1,000 U.S. adults in 2026 to understand their summer travel plans, expected spending, payment methods, and financial trade-offs. The results were stratified and segmented by age and gender, including generational groups (Gen Z, millennials, Gen X, and baby boomers). Percentages may not total 100% due to rounding.
BestMoney helps consumers make smarter financial decisions by comparing loans, credit cards, insurance, and other financial products. By providing transparent insights and data-driven research, BestMoney empowers users to better manage their finances—including planning and budgeting for major expenses like travel.
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