More Americans are ditching summer vacations, but travelers still going away are upping their spending

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The Summer Vacation Paradox: Fewer Americans Are Traveling, But Those Who Do Are Splurging Like Never Before

The data reveals a tale of two travelers—and a clear signal for B2B companies serving the travel, hospitality, and experience economy.

If you’re in the business of selling software, services, or solutions to the travel and hospitality industry, listen up. A new Deloitte report dropped some numbers that should make any revenue leader sit a little straighter in their chair.

Here’s the tension: fewer Americans are taking summer vacations this year than at any point in the last six years. But the ones who are traveling? They’re spending more, planning longer, and demanding premium experiences. That’s not a contradiction—it’s a market signal.

Let me break down what’s happening, why it matters, and exactly what your GTM strategy should do in response. No fluff. Just playbook.

The Headline Number That Should Wake You Up

Deloitte surveyed 4,000 Americans and found that only 45% plan to take a summer vacation involving paid lodging in 2025. That’s the lowest figure in six years.

To put it bluntly: a majority of Americans are sitting this summer out.

Why? The reasons are straightforward and painful for operators:

  • About one-third of non-travelers said they can’t afford a vacation.
  • A similar share said travel has become too expensive.

This isn’t a demand problem. It’s a cost problem. And when prices rise faster than wages, the travel market naturally splits into two segments: those who can still swing it, and those who can’t.

But Wait—Here’s Where It Gets Interesting

Now look at the other side of the ledger.

The same Deloitte survey found that travelers who are planning a summer trip expect to spend an average of $4,050 on their longest vacation. That’s a 17% jump from last year.

Let me translate that for you: the people who are still in the game are spending like it’s their last trip on earth.

Kate Ferrara, Deloitte’s US transportation, hospitality, and services sector leader, summed it up perfectly: “Amid pricing pressures, those who are packing their bags this summer intend to spend, indicating that many are putting a premium on experiences.”

That’s not just a data point. That’s a strategic insight.

Three Shifts That Every B2B Company Should Track

If you sell to travel brands, hotel chains, airlines, or hospitality tech companies, these three trends from the Deloitte data should shape your next product update, your next sales pitch, and your next content piece.

1. The “Work While You Travel” Trend Is Exploding

Here’s a stat that should make you pause: 34% of surveyed travelers said they plan to work during their longest summer trip. That’s up from just 23% last year.

Now drill into the demographics, because this is where the real opportunity lives:

  • 57% of Millennials plan to work while on vacation—the highest of any generation.

Millennials now make up nearly one-third of all travelers in the survey. This is the first generation that came of age with Slack, Zoom, and the expectation that “being away from the office” doesn’t mean “offline.”

What does that mean for you? If you’re selling to airlines, hotels, or short-term rental platforms, your customers need to build for the workcation. That means:

  • Reliable, high-speed internet as a non-negotiable amenity
  • In-room desk setups and good lighting for video calls
  • Properties that offer quiet spaces for meetings
  • Pricing models that reflect longer stays (a week instead of a weekend)

The old vacation playbook assumed people wanted to disconnect. This new cohort wants to connect—on their terms, with their laptop open, and their calendar blocked for beach time between 2 PM and 6 PM.

2. Premium Upgrades Are Not Optional—They’re the Main Event

Deloitte’s numbers show that more consumers are planning to purchase premium airline seats, upgraded tickets, and better hotel locations compared with last year.

This isn’t a cost-cutting moment. It’s a quality-maximizing moment. When people do decide to travel, they’re trading up.

For B2B companies serving this space, here’s your mandate:

  • Airlines need dynamic pricing engines that can optimize premium seat inventory in real-time.
  • Hotels need to upsell room categories, views, and packages during the booking flow—not as an afterthought.
  • Amendity providers need to bundle premium experiences (airport lounges, early check-in, spa credits) into seamless one-click add-ons.

Your customers’ tech stack should make premium feel frictionless. If it doesn’t, someone else’s will.

3. International Travel Is Back—And Growing

The data shows that 32% of surveyed travelers who plan to fly intend to take an international flight this summer. That’s up from 27% a year ago.

That 5-percentage-point shift represents millions of travelers—and billions of dollars in bookings.

Why does this matter for B2B? Because international travel comes with more complexity:

  • Multi-currency payments and revenue management become critical
  • Cross-border data regulations (GDPR, etc.) require compliance features
  • Language localization becomes a requirement, not a nice-to-have
  • Customer support needs to handle time zones and languages at scale

If you sell to travel companies, ask yourself: Are we enabling our customers to serve international travelers better than they did in 2024? If the answer is “not yet,” you’re leaving money on the table.

The Gen Z and Millennial Factor

Deloitte’s survey confirms what many in the industry have suspected: younger travelers are now the dominant force shaping travel trends.

Millennials alone account for nearly one-third of all travelers in the survey. And both Gen Z and Millennials said they expect to take more trips this summer than they did last year.

These generations grew up with social media, FOMO, and a culture of “moments over things.” They’re more likely to:

  • Book based on Instagram-worthy aesthetics
  • Prioritize experiences over lodging square footage
  • Trust user-generated content over polished marketing
  • Expect their travel apps to be intuitive, fast, and mobile-first

For B2B companies, this means your customers (the travel brands) need to invest in:

  • Better mobile booking experiences
  • AI-powered personalization that feels human
  • Social media integration into the booking funnel
  • Flexible cancellation and loyalty programs that feel generous

If you’re selling tools that help travel companies deliver any of the above, highlight those capabilities in your pitch. This is the segment that’s growing fastest.

The Emerging Wildcard: AI in Travel Planning

Here’s a stat that surprised even me: 25% of travelers said they plan to use generative AI tools to help plan their trips this summer. That’s up from just 15% last year.

That’s a 67% year-over-year increase in AI adoption among travelers.

Think about what that means for travel brands:

  • Your customers’ search experience is about to change. Instead of typing “best hotels in Paris,” travelers will ask ChatGPT or Google’s Bard: “Plan me a 5-day trip to Paris with a mix of culture and relaxation, under $4,000, not too far from great restaurants.”

  • The winners will be the brands that structure their data and APIs to be consumed by AI tools. If your hotel or airline isn’t accessible via an AI search agent, you’re invisible to 25% of the market—and growing.

  • B2B companies in this space should be building: AI-friendly APIs, structured data outputs, and tools that help travel brands get discovered by AI planners.

This is not a future trend. It’s happening right now.

What This Means for Your GTM Strategy

I’ve been writing about B2B growth long enough to know that data without execution is just noise. So let me give you three actionable takeaways to run with.

Takeaway 1: Segment Your ICP Around “Premium First” Travel Brands

The travel market is splitting into premium and budget segments. If you’re still selling a one-size-fits-all solution, you’re missing the signal. Focus your sales efforts on:

  • Boutique hotel chains
  • Airlines with premium cabin expansion plans
  • Experience-focused travel platforms (think Airbnb Experiences, Viator, etc.)

These are the customers who need to capitalize on the 17% spending increase. They have budget. They have urgency. And they need tools that help them deliver premium at scale.

Takeaway 2: Build for the Workcation Economy

The 57% of Millennials who plan to work on vacation are not a niche—they’re the new normal. If your product doesn’t account for longer stays, mid-week check-ins, and workspaces, you’re missing a massive iteration opportunity.

Consider:

  • Adding a “work-friendly” filter or tag to your platform
  • Building tools for property managers to highlight desk setups and Wi-Fi speeds
  • Creating content that positions your customer’s offering as ideal for “workcationers”

Takeaway 3: Get Ready for AI-Native Bookings

That 25% AI usage number is going to keep climbing. Every travel brand you sell to needs an AI strategy. That’s your wedge.

Position yourself as the partner that helps them:

  • Optimize their data for AI search
  • Integrate AI booking assistants
  • Measure and improve their “AI discoverability”

Don’t wait for them to ask. Bring this to them.

The Bottom Line

The Deloitte data tells a clear story: the summer vacation market is bifurcating. Fewer people are traveling, but those who do are spending more, upgrading everything, and bringing their laptops along for the ride.

For B2B companies serving travel and hospitality, this isn’t a time to panic. It’s a time to pivot. The travelers who remain are your best customers—and they’re signaling exactly what they want. Premium. Flexibility. Connectedness. Experience.

If your product helps travel brands deliver that, you’re sitting on a goldmine.

Now go build.

Data source: Deloitte’s 2025 Summer Travel Survey of 4,000 Americans, released July 2025.

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