Travel has proven remarkably resilient in 2025 despite some pretty significant economic headwinds.
In their just announced third-quarter earnings, airlines suggested that things have stabilized after a weaker-than-expected start to the year — but all the major carriers have lower expectations than they did at the beginning of 2025.
Tariffs, inflation and high interest rates continue to weigh on consumers, which is causing some weakness in demand for airlines and hotels. We’ve also seen a substantial drop in international visitors to the U.S.
Still, recent polling from YouGov commissioned by TPG suggests that while some American consumers are planning on cutting back on travel next year, a majority will still spend the same or even more in 2026.
Related: Need to know: The 6 top travel trends for 2025
Consumers are still eager to travel
Nearly 40% of consumers (39%) plan to spend less on travel in 2026, but 57% said they plan on spending the same or slightly more.
Interestingly, according to our new polling, when it comes to spending less, women (43%) are the driving force, not men (35%).
While just 39% of consumers plan on spending less in 2026 than they did in 2025, this still presents a stark change from just a few months ago. In polling TPG commissioned earlier this year, only 9% were traveling less in 2025 than the year before. That suggests that the number of people who are cutting back is increasing, a worrisome sign for the travel industry.
Consumers are looking for ways to save
Consumers are making efforts to cut trip expenses. The primary ways to save on travel include driving instead of flying, staying in less expensive accommodations and choosing dates and destinations based on price. That means some consumers are choosing to stay in less popular places.
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That follows our general advice at TPG to go where the dollar is strong, travel during off-peak dates and visit secondary cities or countries that are a bit more off the beaten path (think: Albania, Slovenia or Hungary in Europe instead of Switzerland or Italy).
Related: 13 underrated summer travel destinations
Generation Z is significantly more likely to save money by staying in less expensive accommodations and visiting less popular destinations, while baby boomers and older travelers prefer driving over other money-saving strategies.
A falling dollar is playing a role
The dollar has lost about 10% of its value so far in 2025. That has some consumers shifting their plans, with 14% saying they will travel domestically instead of internationally and another 8% saying they are traveling to countries where the dollar remains strong.
Still, 67% of those polled said it wasn’t making a difference.
Some are reconsidering international travel
It’s been a year of upheaval in international relations, with reports of foreign visitors being questioned extensively at U.S. borders and an ongoing trade war rattling markets and nerves. All of that has some folks rethinking international travel.
According to our new YouGov/TPG polling, slightly more than a quarter of individuals are reconsidering international travel in light of recent turmoil in the U.S.
Younger generations are less likely to cancel or change their international travel habits compared to Generation X and older generations.
Bottom line
While the appetite for travel remains strong, more Americans are planning to travel less next year and are looking for ways to spend less when they do travel.
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