Stretching Budgets, Not Skipping Travel: Americans Vacation Despite Financial Strains

Soaring prices and economic unease aren’t stopping Americans from hitting the road this summer, even if it means stretching their budgets to the limit.

According to Allianz Partners USAs annual Vacation Confidence Index, a growing number of “justi-vacationers” — those who admit they cant afford to travel but plan to do so anyway — are shaping the travel landscape of 2025. Despite financial pressures, Americans are expected to spend a record $226.6 billion on summer vacations in 2025. The average household will shell out $2,867 for their trip, up slightly from $2,843 in 2024.

Now in its 16th year, the Vacation Confidence Index has tracked Americans’ evolving attitudes toward leisure travel since 2009. The 2025 survey was conducted by national polling firm Ipsos Public Affairs on behalf of Allianz Partners USA. For the purposes of the study, a vacation is defined as a leisure trip of at least one week to a destination at least 100 miles from home.

This year, 51% of Americans say they can’t afford a vacation, yet 39% say they plan to travel anyway. That determination underscores a deeper emotional need: 72% report being in desperate need of a getaway, and 75% believe taking an annual vacation is important.

Rather than abandon travel plans entirely, many are making trade-offs — opting for shorter stays, traveling off-peak, or cutting costs creatively — to make vacations happen. The emotional value of travel appears to outweigh the financial burden, with Americans seeing time away as essential to reconnecting with loved ones, recharging mentally, and breaking from daily stress.

“Americans haven’t lost their passion for travel, but for many it now comes with tough trade-offs. This is why it’s so critical to have travel insurance,” said Emily Hartman, General Manager at Allianz Partners USA. “So much time goes into planning and budgeting for vacations, especially when there is increased uncertainty in the economic landscape. Travel insurance can be your stability through uncertain times by protecting your hard-earned travel investment from covered losses and situations before your trip begins and while you’re traveling.”

Older Americans, especially those age 55 and over, appear more insulated from economic pressures. Just 33% in that age group cited cost as a reason for skipping travel, with health concerns and lack of interest cited more frequently. Many in this demographic benefit from fixed incomes, paid-off homes, and fewer financial obligations, giving them greater flexibility to travel.