A survey by consumer finance company Bankrate found that fewer Americans are planning to travel for a summer vacation in 2025. According to Bankrate, 46% of respondents said they are planning to take a vacation, down from 53% in 2024 at this time.
Why is summer travel down?
More than two-thirds, or 65%, said that money is the key reason, checking the response that says “I can’t afford it.” Around 10% say they are planning a “staycation” instead.
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Bankrate dug deeper into the research and found that 68% said the cost of everyday life was a bigger factor than the actual cost of going on vacation, which was 64%.
A further 29% said they have too much debt right now to pay for a vacation.
There are still many people who aren’t yet certain about their summer plans, with 23% saying they are “unsure.” That’s up from 18% checking the same box in 2024.
Economic headwinds
Ted Rossman, a senior analyst at Bankrate, told CNBC that recent tariffs and fears of a possible recession are causing more people to pause and wait when planning their summer.
He said, “We’re seeing more layoffs and the potential for higher prices, which has many people on edge.“
How might this affect airlines?
The numbers spell possible bad news for the airline industry. The Wall Street Journal reports that Southwest Airlines has reduced its 2025 business projections due to a reduction in demand and uncertainty about the economy. It reported a net loss in the first quarter of $149 million as sales fell, particularly for domestic leisure travel.
The Journal reports that Delta and United posted profits in the first quarter of 2025. However, both airlines say they expect slower growth in the second half of the year. Delta has now scrapped its guidance for the year, due to economic uncertainty.
The report also indicates that, with consumer confidence falling and fears of an economic downturn, major airlines are now relying on wealthier flyers who are willing to spend more money to sit in premium seats.
