Holiday travel remains a top priority for many Americans this year, according to a report by PricewaterhouseCoopers (PwC). The study reveals that people are spending more on travel than before, driven by younger generations, while others are cutting back or focusing on different priorities.
Millennials and Gen Z Lead Holiday Travel Spending
- Millennials: This generation is spending big on travel, with an average budget of $751 — a 12% increase from last year.
- Gen Z: They’ve boosted their travel budget by an impressive 42%, setting aside $639 on average.
These younger generations prioritize experiences like travel over traditional holiday expenses, such as buying gifts.
Older Generations Are Spending Less
- Generation X: Their travel spending has dropped by 21%, averaging $481.
- Baby Boomers: Spending remains modest, with an average budget of $321 — only 2% higher than in 2023.
PwC’s Jonathan Kletzel explains that older generations often focus more on giving gifts rather than traveling during the holidays.
Rising Costs Shape Travel Budgets
The increase in travel budgets reflects a new reality for consumers: holiday travel has become more expensive. Higher prices for flights, hotels, and entertainment mean that people are adjusting their budgets to keep up.
“As costs rise, consumers are no longer shocked by expensive travel,” Kletzel said.
Domestic vs. International Travel
- Domestic Travel: About 43% of respondents plan to travel within the U.S. this holiday season.
- International Trips: Only 8% of people plan to celebrate the holidays abroad.
- Budget-Saving Trends: Over half of travelers (56%) are staying with friends or family instead of renting accommodations to cut expenses.
Concerns About Travel Costs Persist
While people are less worried about flight cancellations or delays compared to previous years, the rising costs of travel remain a concern. Overall, 85% of consumers are cutting back on discretionary spending, and 31% are reducing travel plans to save money.
Male vs. Female Travel Budgets
- Men: 55% of men plan to travel this holiday season, with an average budget of $2,018, including $714 for travel — a 13% increase from 2023.
- Women: Only 42% of women have holiday trips planned, reflecting a more cautious approach to travel spending.
The Bigger Picture
PwC’s findings highlight a divide in how Americans approach holiday travel. For those who can afford it, travel remains a key part of their holiday experience, especially for younger generations. Meanwhile, others are choosing to save or shift focus to other holiday traditions.
Whether traveling across the country or staying close to home, the holiday season continues to showcase evolving priorities and spending habits.
