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Here's How Rising Costs are Changing the Way Americans Travel

October 23, 2025
/
Sven Kramer

American travel is in a new era. Blame inflation, higher interest rates, and the soaring cost of just about everything, from airline tickets to sandwiches at the airport. The spontaneous weekend trip? It is fading. Today’s travelers are planners, strategists, and deal hunters. Travel isn’t off the table, but how people approach it has completely changed.

Vacations used to be about ease and indulgence. Now, they are about value. Not necessarily spending less, but spending smarter. Travelers are changing when they go, where they stay, and what they are willing to splurge on. They are stretching dollars in creative ways to hold on to their time off without getting crushed by costs.

After the chaos of the pandemic, Americans went big. That moment of “revenge travel” meant people booked fast and paid whatever it took. But that phase is fading fast. A new wave of “value travel” has taken over. Now it is all about finding a smart way to take the same trip for less, without sacrificing the fun.

Lens / Pexels / The new strategy is simple: plan early and stay flexible. Travelers are shifting dates to score better rates. They are open to flying into smaller airports or even driving instead.

Price tracking tools, email alerts, and deal newsletters are must-haves. The goal is to beat the system, not just book a break. And it is working. Apps that find “error fares” or discount bundles are exploding in popularity.

Closer, Cheaper & Smarter

Where people go is also changing. Domestic road trips are back in style. Families are sticking closer to home, often within a few hours’ drive. They are skipping airfare altogether and turning to “mini adventures” or backyard tourism. It is less about going far and more about finding something new that doesn’t require a plane ticket.

For those still traveling abroad, money talks. Countries where the dollar stretches further are seeing more traffic. Mexico, Central America, and Southeast Asia are hot right now. Europe, especially the pricey capitals, is more out of reach for the average traveler. People still want the experience, but they are going where they can afford to enjoy it fully.

Lodging is a big piece of the puzzle, too. Hotels are expensive, and it is pushing travelers toward rentals. Airbnb, Vrbo, and other vacation homes offer space, kitchens, and often better value for groups. For others, the rise of camping and RVing offers a mix of escape and savings. It is about cutting costs without cutting experience. A night under the stars beats a $400 hotel stay.

Experiences Over Extras!

Once people arrive at their destination, their mindset has changed too. The splurge is just more focused. Travelers are choosing one special thing to spend big on, like a guided hike or a meal at a bucket-list restaurant. The rest is trimmed down. Budget flights, basic hotels, and do-it-yourself meals make that one moment shine.

Simon / Pexels / There is also a boom in “travel hacking.” People are stacking credit card points, airline miles, and loyalty perks to stretch budgets further. What used to be a niche hobby is now mainstream.

Booking a flight with points is no longer a luxury move. It is a survival tactic. Even hotels are booked with the idea of saving elsewhere.

Day-to-day choices on vacation also look different. Eating out every meal? Not anymore. Travelers are booking places with kitchens so they can cook at least one or two meals a day. They are packing snacks, planning picnics, and hitting up grocery stores instead of tourist traps. Even big-ticket attractions are being replaced with free fun, like public parks, nature trails, and museums on no-fee days.

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