Accounting and consulting firm PwC has released its annual Holiday Outlook, which predicts that travel spending over the holiday season will decrease this year — even among higher-income consumers.
Overall intent to travel is holding relatively steady, with 40% of consumers planning to take a trip, compared to 44% in 2025. That said, overall expected spend per person is down 24% from last year, dropping from $553 to $419. Americans say they’ll save by avoiding flying (33%), booking budget or midrange hotels (38%) and staying with family or friends (35%).
Lower spending is expected even among high-income households (those earning $150,000 or more), which are making the same types of cuts, according to the study.
This trend marks a departure from just last year, when PwC found that travel was an exception to spending cuts; even respondents who were cutting back on gifts were putting those funds toward travel and entertainment.
The firm says the change is likely driven, at least in part, by fuel prices. And, importantly, this may signal that the “travel-at-any-cost” mindset of recent years may finally be reaching its limit.
PwC also found that the most common way travelers are using AI in the booking process is to research or compare hotel and flight prices (outranking trip recommendations and itinerary building), further solidifying that cost is becoming a more meaningful factor in travel plans this year.
