Travel demand is not declining as the spring season begins but shifting, with heightened price sensitivity creating new challenges for independent lodging operators, according to a new report from TakeUp.
The revenue management company’s “State of Travel Demand 2026” report — based on a survey of 300 U.S. travelers conducted with Pollfish — indicates that overall travel intent remains stable but is increasingly segmented by income level and trip purpose. Furthermore, budget-conscious travelers are tightening spending, while higher-end travelers are increasing outlays, particularly on experiences.
“This is not a year that will reward guesswork. It will reward precision,” TakeUp CEO Bobby Marhamat said in a statement. “The difference between capturing demand and losing it might come down to a 10 percent to 20 percent tolerance band, or recognizing that a special occasion trip behaves differently than a weekend getaway.”
“This report shows that travel demand in 2026 is splitting rather than shrinking, which means the opportunity is not about chasing every traveler,” added Kourtney Thomas, head of customer success, TakeUp.
According to the findings, 56 percent of respondents expect to travel about the same amount as in 2025, while 28 percent plan to travel more and 13 percent less. More than three-quarters (76 percent) anticipate taking multiple overnight leisure trips this year.
Spending trends show divergence across segments. Overall, 39 percent of respondents expect to increase leisure travel spending, compared with 9 percent who expect to spend less. Among luxury travelers, 79 percent plan to spend more, while 20 percent of budget-conscious travelers expect to reduce spending.
Traveler behavior is also shifting in response to pricing. Forty-two percent reported increased sensitivity to accommodation costs compared with last year. However, rather than cancel trips, 43 percent said they would consider switching property types and 31 percent would shorten their stay if prices increase.
Transportation choices are also evolving, with 28 percent of respondents indicating they plan to drive more often due to economic conditions, compared with 13 percent who expect to fly more.