U.S. travelers are planning smarter, leaner summer trips

PwC data suggests travelers still want to spend on experiences, but rising costs, AI-driven trip planning, and cautious budgeting are reshaping how hotels compete this summer

A new U.S. consumer survey shows that travelers continue to prioritize summer travel despite ongoing economic pressure. Many consumers are planning multiple trips and booking earlier, but they are also becoming more cost-conscious and selective about where and how they spend. Younger travelers continue to drive demand, while AI tools are increasingly influencing travel discovery and booking decisions. For hoteliers, the message is clear: demand still exists, but conversion will depend more heavily on pricing strategy, visibility, and perceived value.

Key takeaways

• Travel demand remains strong despite economic pressure: Americans still plan to spend significantly on summer travel in 2026, signaling that leisure travel remains a priority even as household budgets tighten.
• Hotels continue to capture a major share of travel spend: Hotel accommodation remains one of the largest travel expense categories, while spending on alternative lodging such as vacation rentals appears comparatively lower than expected.
• Guests are adjusting behavior instead of cancelling trips: Travelers are increasingly choosing shorter stays, nearby destinations, and lower ancillary spend rather than abandoning travel plans altogether. This could support occupancy while putting pressure on total guest spend per stay.
• Price sensitivity is becoming more generationally nuanced: Younger travelers are more willing to trade down on accommodation quality to stay within budget, while millennials are responding by booking earlier to secure lower rates and discounts.
• World Cup demand expectations may have been overly optimistic: Several host markets are already experiencing hotel rate corrections as anticipated booking demand for the 2026 FIFA World Cup has not yet fully materialized. This highlights the risks of aggressive event-driven pricing strategies.
• Large hotel groups still expect event-driven RevPAR growth: While some independent markets are seeing softer booking momentum, major brands such as Marriott International continue to forecast positive revenue impact from the World Cup, particularly in key U.S. gateway cities.
• AI is becoming part of the booking funnel: Travelers are increasingly using AI tools to compare prices, research destinations, and book trips, especially among younger demographics with higher travel intent and spending potential.
• AI visibility could become a new distribution battleground: Hotels that are easily surfaced within AI-driven discovery and recommendation tools may gain an advantage with high-intent travelers as booking behavior shifts away from traditional search journeys.

Source: PwC

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