Research Insights When travel isn’t first: How economic strains are changing consumer behavior

When travel isn’t first: How economic strains are changing consumer behavior

Published:
October 2025
Analyst:
Phocuswright Research

Behind steady travel rates, a quiet shift is underway: consumers are spending more cautiously and rethinking what matters most. Shifting priorities signal the start of a new spending reality. According to Phocuswright’s latest travel research report U.S. Consumer Travel Report 2025, average annual spend has declined, while the number of trips remains unchanged. In the new data, travelers indicated they would consider road trips in lieu of air travel should airfare become too expensive, or not travel at all to spend on other goods and services.

The new report also reveals that there are slightly more younger travelers entering the market and older, more seasoned travelers are beginning to exit. These younger travelers are more cost-conscious, leveraging OTAs more for their price comparison capabilities.

While major trip components continue to be booked at similar rates, the way travelers research, plan, and choose is shifting beneath the surface. Travelers report spending significant time researching trips, but general search usage is declining, likely reflecting the rise of AI-powered search tools. Search behaviors, booking channels, and even lodging preferences point to a more deliberate, and price-conscious, traveler.


Indirect booking channels such as OTAs and intermediaries gained share, suggesting travelers are seeking value and comparison options. Subtle shifts in lodging and destination choices also hint at growing economic caution, with choices driven by price and value.


Travel remains resilient, but the forces shaping it are shifting fast. Consumers are weighing trade-offs, embracing smarter tools, and demanding value like never before. Phocuswright’s U.S. Consumer Travel Report 2025 uncovers how these trends are influencing spending, channel choice, and loyalty across the American travel landscape.

Based on a comprehensive survey of United States leisure travelers, this report provides a range of data and analysis on the American consumer travel market, and what these trends look like over time.

Key research topics addressed by this research include:
  • How have U.S. travelers’ spending priorities shifted over the past 12 months, and what does this mean for discretionary travel demand?
  • Which booking channels and tools are gaining favor among different generations of travelers?
  • How are price sensitivity and economic pressures reshaping decisions about destinations, accommodations and travel modes?
  • What opportunities exist for suppliers, OTAs and technology players to capture value as travelers demand smarter, more transparent planning tools?

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