PwC: Travelers downsize travel plans for the summer

Busy airport terminal
Twenty-four percent of respondents plan to spend less on travel this summer compared to last year, according to PwC’s U.S. Consumer Poll on Summer Spending. (SugarstarShutter/Getty Images)

According to PwC’s U.S. Consumer Poll on Summer Spending, travelers are expecting to spend an average of $898 for trips over the Memorial Day weekend. Over all, they also are booking earlier and planning more trips, and are more likely to spend across other consumer categories through Labor Day.

Summer Travel

While 34 percent of adults plan to travel over Memorial Day weekend, different generations have different expectations. Close to half of Gen Z (49 percent) and 43 percent of millennials plan to take a trip, “far outpacing” older generations, the report noted. 

PwC Generational Summer Travel Plans
PwC Generational Summer Travel Plans

For the full summer, Americans plan to spend—on average—more than $2,800 per adult on travel, with transportation ($699), hotels ($605) and food and dining ($400) dominating the expenses. Notably, spending on nontraditional lodging such as vacation rentals and apartment stays was relatively low at $217, which the report called “a potentially encouraging sign for the hotel industry.” 

Twenty-four percent of respondents plan to spend less on travel this summer compared to last year, citing the high cost of everyday expenses and a focus on saving money and paying down debt. It’s part of the broader K-shaped economic trend shaping the summer’s spending picture. However, the report noted that while travelers may spend less, they still want to travel and are seeking ways to save money. The more common strategies are taking shorter trips (45 percent), spending less on eating out (44 percent) and traveling closer to home (42 percent). Only 18 percent plan to delay or skip certain trips entirely.

PwC Summer Travel Budget
PwC Summer Travel Budget

Generational differences are evident here as well: Gen Z respondents are more likely to trade down on accommodations, while millennials are more likely to book early to lock in discounts, which the report noted are different approaches to the same goal of making the most of a tighter budget.

World Cup Interest

The report also found that 59 percent of Americans surveyed plan to watch or follow the 2026 FIFA World Cup games over the summer, including 81 percent of Gen Z respondents and 71 percent of millennials, with Gen X (55 percent) and baby boomers (35 percent) trailing behind. 

On the flip side of that interest, only 11 percent of respondents said they actually plan to attend a game in person, expecting to spend an average of $379 on tickets, plus $328 on travel costs and $311 on hotels.

These numbers align with other expressions of caution regarding how the games may help hotels in host cities. Earlier this month, The American Hotel & Lodging Association’s World Cup Report found that anticipated demand has not translated into hotel bookings. A full 80 percent of respondents said hotel bookings are tracking below initial forecasts. According to hotel revenue data experts Lighthouse Intelligence, hotels rates in the New York area had been as high as $963 for the night before the final, but dropped by between 20 percent and 40 percent across the entire tournament from prices 200 days out. Vancouver hoteliers set room prices as high as $1,600 in anticipation of the tournament but are now being forced into making the biggest price drops out of any of the 16 host cities as prices are slashed by as much as 51 percent.

Other companies are more optimistic. During the company’s earnings call with investors earlier this month, Marriott International President and CEO Tony Capuano said he expects the games would contribute an estimated 30 to 35 basis points to the company’s global RevPAR growth, with a meaningful share of the benefit concentrated in U.S. markets.

AI and Travel

Survey respondents reported increasing use of artificial intelligence as a research tool and booking channel for travel. Forty-five percent of those surveyed say they are familiar with AI agents for travel booking—rising to 55 percent of Gen Z and 60 percent of millennials. 

That growing comfort with AI is increasingly changing how people plan trips: Among survey respondents, 44 percent say they often or always use AI tools to compare prices and look for discounts, 42 percent use them to research destinations and travel options, and one-third use AI agents or bots to book parts of their trips.

Across the generations, Gen Z and millennials lead in adoption and usage tracks closely with  spending. Those planning to spend more this summer are significantly more likely to rely on AI for planning, price comparison and booking their trips. The report argued that brands that are "more visible within AI-driven discovery channels” may have an advantage in reaching the consumers most likely to spend. 

For the report, PwC surveyed 2,060 adults ages 18 and older over two days in April.