Escalating journeys by automobile as cost-conscious summer travelers seek out budget-friendly getaways
Domestic Travel Surges Amid Economic Uncertainty as Consumers Opt for Road Trips
Despite an uncertain economic outlook, American consumers are unfazed when it comes to their travel plans. According to Deloitte researchers, the number of U.S. consumers planning vacations this season has seen a notable increase, rising from 48% last year to 53% as of Tuesday.
This upward trend reveals a preference for more frequent, shorter trips closer to home, often by car, as travelers adopt a more frugal approach this year. In fact, consumers are actively seeking cost-effective vacation options, with a growing interest in road trips.
Chris Narvaez, a human resources director from New York City, had originally planned to travel to London and Rome this summer. However, despite a 8% decrease in airfares to Europe, according to travel booking platform Hopper, Narvaez has decided to postpone overseas travel.
Citing increased visa requirements, concerns about air traffic control, and updates to entry and customs rules, Narvaez instead plans to explore domestic destinations, including Woodstock, Washington D.C., and Martha's Vineyard, by car.
Alexisa Humphrey, the owner of Sugar and Spice Travels in Lebanon, Tennessee, echoes Narvaez's sentiments. While her clients are still willing to travel, they are increasingly opting for more affordable, budget-friendly trips, as expressed by Narvaez.
Recent issues at Newark Liberty International Airport have caused some travelers unease, with travel volumes at the busy New Jersey airport down by 20%, NBC News reported on Tuesday. Highways, on the other hand, remain susceptible to more danger than commercial air travel or passenger rail.
Cost is a significant factor driving the surge in road trips. Although round-trip domestic flights are hitting three-year lows, according to Hopper, driving typically remains a cost-effective choice. Gas prices heading into Memorial Day are around 40 cents cheaper than at the same time last year, according to AAA, which anticipates a record 45.1 million people to travel at least 50 miles from home over the long holiday weekend, marking a 3.1% increase since 2024—the highest level in two decades.
As price-hike headlines proliferate and economic sentiment drops to historic lows, travelers are trimming their vacation budgets. In March, Deloitte found that travelers were planning to spend an average of $3,987 on their primary summer trips, representing a 13% increase from the previous year. However, just two weeks later, with frenzied tariff news rattling stock markets, that estimate had shrunk to $3,471—an increase of less than 1% compared to 2024.
Latisha Hunt, a real estate agent and Air Force veteran from Biloxi, Mississippi, is one such traveler who has adjusted her plans accordingly. Hunt, 39, shortened a trip to Panama in early July from seven days to three and has opted to drive 5.5 hours to Atlanta's airport instead of flying from a smaller one nearby.
In addition to the affordability factor, Hunt sees another advantage in driving: it allows for more personal, meaningful experiences as she visits family and friends along the way. Hunt is not alone, as GSTV’s research reveals that 56% of drivers surveyed at the pump this winter plan to drive more on their summer vacations than they did last year, while 54% report choosing driving over flying to save money.
Lower- and middle-income vacationers are particularly drawn to driving, with Bank of America finding it to be the preferred mode of transportation for at least 64% of both groups, compared to less than 55% of high-earners. The cost of rental cars has decreased by around 2.1% in April compared to the previous year, according to federal data, and Hopper expects this trend to continue throughout the summer.
However, this decrease in rental car costs comes at a potential cost for vehicle selection, as major rental car operators, such as Avis Budget Group and Hertz, slash their fleets in response to reduced demand. Additionally, travelers may need to budget for parking fees at airports and hotels, which can range from a few dollars to $80 a day, and only low-priced parking spots can still top $100 per night at high-demand lots.
Road trippers are increasingly attracting the attention of accommodation operators, with hotel parking revenues surging 18% between 2019 and 2024, according to real estate and investment firm CBRE. Hotel revenue overall grew less than 7% over the same period.
In summary, the growth in road trips during economic uncertainties can be attributed to factors such as affordability, reliability, a preference for local exploration, quality social time, and a cultural shift toward meaningful, relaxed vacations close to home. Despite the potential challenges—such as limited vehicle selection due to slashed rental car fleets and increased parking fees— domestic road trips present an attractive option for those looking to minimize costs while still enjoying multiple getaways.
- In response to economic uncertainty, consumers are preferring more frequent, cost-effective road trips instead of expensive overseas travel.
- A decrease in airfares to Europe and increases in visa requirements, air traffic control, and entry and customs rules have led to a rise in domestic travel by car.
- The real estate sector has seen a growth in hotel parking revenues as road trippers seek accommodations for their leisurely travels.
- Amidst frenzied tariff news and low economic sentiment, travelers are opting for smaller vacation budgets and more affordable road trips that provide personal, meaningful experiences.
