Deloitte warns hotel spending will tighten

Holiday demand is strong, yet shifting behaviour signals tighter wallets — and new challenges for hotels

The latest survey from Deloitte finds that more Americans plan to travel this holiday season than in recent years, but their spending expectations are falling — suggesting a more cautious travel market ahead.

Key takeaways

• Increased travel intent: 54% of respondents plan to travel between Thanksgiving and mid-January, up 5 percentage points from 2024.
• Reduced budgets: Average planned spending is about $2,334, down 18% year-over-year.
• Financial strain even among high earners: Nearly one-in-five high-income travellers report being worse off financially than a year ago, leading to trip reductions.
• Gen Z and millennials leading travel but also cutting back most: These groups make up around half of holiday travellers, but Gen Z in particular plans to reduce budgets significantly (-31% year-over-year).
• Mode and accommodation shifts: Fewer travellers expect to fly (47% vs 55% last year), with many opting to drive. Mid- and high-income travellers plan fewer hotel stays; low-income travellers may increase theirs slightly.
• Rising use of generative AI in travel planning: 24% expect to use generative AI tools this season, up sharply from previous years.
• Luxury travel persists amid caution: About 26% qualify as “luxury travellers,” signalling continued interest in upscale stays despite broader spending pullbacks.

Get the full story at Deloitte