After several years of steady recovery, the U.S. travel market seems to be entering a new phase. While 2025 marked a year of stability in trip frequency, Americans have become more discerning about where, when, and how they travel. Economic uncertainty, rising prices, and evolving technology are reshaping traveler priorities.
Travel incidence has remained flat over the past 12 months, but the dollars behind those trips are under strain. Average annual spending on leisure travel declined in 2025 as Americans faced tighter wallets and difficult trade-offs.
According to Deloitte and ThePointsGuy.com, 31% of respondents said travel felt “too expensive” in 2025, up from 24% in 2024. That’s no surprise, since airfare climbed a whopping 12% year-over-year, forcing travelers to rethink their vacation budgets.
Now, 84% of Americans now plan to use their own vehicle for trips, with more than half (56%) driving more than they did last year. Road trips and short-drive getaways have emerged as the new comfort zone for many, offering affordability, flexibility, and a renewed sense of discovery close to home.
Two Travelers, Two Mindsets
The travel market in 2026 will be defined by a widening divide between value seekers and experience collectors.
Mass-market travelers are pulling back. Younger generations, in particular, are prioritizing financial stability over far-flung travel. They’re leveraging price-comparison tools and AI assistants to find the best deals. And they won’t hesitate to trade air travel for road trips or skip travel altogether if prices feel out of reach.
On the other hand, luxury travelers are going in the opposite direction. These affluent adventurers are doubling down on high-value, curated experiences that deliver exclusivity, personalization, and cultural depth. For them, it’s less about frequency and more about quality.
Events & Experiences
While some belts are being tightened, passion is still a primary driver when it comes to travel decisions. As a result, event-based leisure travel is emerging as a bright spot. Concerts, festivals, and major cultural moments are pulling travelers back on the road.
The U.S. live events market, valued at $62.7 billion in 2024, continues to surge, with a peak anticipated in 2026 as America celebrates its 250th anniversary. The America 250 Sesquicentennial will anchor a year-long calendar of nationwide commemorations, offering destinations a historic opportunity to highlight local heritage, culture, and community pride.
Throw in the FIFA World Cup 26™, to be held in Mexico, the U.S. and Canada in the summer of 2026, and the year is shaping up to be one for the record books in terms of event-based travel.
Culinary Curiosity on the Rise
Food continues to be a powerful motivator for exploration. The U.S. culinary tourism market, projected at $3.17 billion by the end of 2025, is expected to keep growing at nearly 19% annually through 2030. Nearly one in five travelers now choose destinations based on culinary offerings, underscoring the appetite for immersive food experiences, from farm-to-table dining and vineyard tours to hyper-local tasting trails.
Nature, Mindfulness, and Sustainability Stay Strong
Nature continues to call. Time in parks, gardens, and outdoor spaces remains one of the fastest-growing social activities. Millennials and Gen Z travelers, in particular, are prioritizing sustainability and conservation in their trip planning. Destinations investing in zero-waste initiatives, carbon offsets, and solar-powered experiences will resonate with this values-driven audience.
Along the same lines, today’s travelers want to move beyond surface-level sightseeing and engage in deeper, more meaningful connections with the people and cultures that shape a destination. In an age of constant noise and overstimulation, silence itself has become a luxury. From meditation retreats and yoga to hikes, travelers want to disconnect from distractions and reconnect with nature, heritage, and themselves. Transformative, mindful journeys that leave a lasting impact are increasingly important.
“Townsizing” and Detour Destinations
As Americans look for smaller-scale, more meaningful getaways, the Townsizing and Detour Destination trends are redefining domestic tourism. Travelers are skipping the big-city crowds in favor of smaller towns, mid-sized communities, and off-route stops that offer local charm and authentic engagement. These places provide the intimacy and connection that today’s travelers crave (along with the economic boost that helps these communities thrive).
AI Takes the Wheel
Of course, we couldn’t get through a blog post about travel in 2026 without talking about the elephant in the room — artificial intelligence (AI). Since ChatGPT’s public debut in 2022, AI has evolved from a novelty to an integral part of the travel planning experience. A recent Phocuswright consumer survey found that half of travelers now expect to use ChatGPT for leisure trip planning within the next year. Now, AI is poised to become a true travel companion.
As OpenAI’s next-generation AI Agent rolls out with the ability to handle bookings and reservations autonomously, the travel-planning process is on the verge of transformation. For destination marketing organizations (DMOs) and travel brands, earned media and PR visibility will be more important than ever, since AI bots increasingly pull content from trusted, organic sources rather than paid channels.
