Over Half Of Americans Are Overspending On Summer Travel, Survey Reveals

To see how Americans manage the problem, BestMoney has interviewed 1,000 American citizens regarding their plans for summer travel, spending amounts, and money-saving compromises.

The survey clearly shows that while Americans are still eager to travel during the summer season, overspending on vacation has become an everyday phenomenon.

What the Survey Found: Key Numbers Worth Knowing

Here’s an overview of some key data points:

• 81% feel traveling costs more than it used to several years ago.

• 53% find travel planning financially draining.

• 55% plan to finance summer vacations using their own money.

• 37% are thinking of funding trips via credit card, and 30% intend to spend out of the current paycheck.

• 57% are going into summer without a clear budget.

• 38% had already reduced daily expenses in order to take a trip.

• 50% said the amount of money set aside for travel was greater this year than last summer.

Numbers paint a picture of a nation that hasn’t ceased to love traveling yet, but has put in a lot more effort in achieving this goal.

A Nation Divided: Who's Actually Traveling This Summer

But it seems like everyone is on vacation. In reality, the situation is somewhat different.

Just 21 percent of the US population have made their vacation arrangements already. Thirty-five percent have their trips planned but haven't booked them yet. Eighteen percent are still trying to decide whether to go on vacation or not, while 22 percent say they won't be taking any trips during this summer season.

"It often happens that vacations don't happen despite people wanting them badly. Sometimes it's impossible due to purely financial reasons."

There are noticeable generational differences when it comes to summer vacations. Baby Boomers are the least interested in going somewhere in summer: 35 percent of them don't make any vacation plans. Generation Z people demonstrate great enthusiasm towards vacations – only 13 percent skip their summer trips.

Gen Z people book their trips sooner than members of other generations. For example, while 29 percent of Gen Z people have arranged their vacation, only 20 percent of baby boomers have done the same.

For those who actually plan to travel, however, financial considerations become an issue. Saving money, settling debts, and spending on basic needs remained more important than traveling and having vacations. There was definitely a willingness to travel – but people still had obligations to deal with.

Why Americans Still Feel Travel Is Worth the Sacrifice

Despite all of the pressures, Americans still do not consider giving up on their vacations completely. The motivation behind vacations is not just the possibility to post pretty photos on Instagram.

According to the Harvard School of Public Health study conducted in 2024, being outside may help decrease blood pressure, improve sleep, and positively impact one's mental state. Americans intuitively understand that – as indicated by 76% of those surveyed stating vacations were important for their mental state and the same percentage of those stating that they felt balanced during them.

Moreover, traveling is a very sociable activity. Over half of Americans (52%) noted that vacations helped them maintain connections with their significant others.

Pro Tip:

When financial stress is causing travel to seem daunting, start small by taking a regional break. In just a weekend, you'll get many of the same psychological rewards as a longer trip, minus the bigger bill.

It's clear from these perceived advantages why such a large percentage of Americans are willing to push themselves financially. Almost two-thirds (63%) believe vacations are worth financial sacrifices, and 67% prefer experiences to possessions. An even more surprising finding: nearly one-third (27%) would borrow money to fund a vacation. This jumps to 33% for Generation Z and 30% for millennials.

But the stress is very real. More than half (53%) reported feeling nervous when planning this summer's vacation. For baby boomers, it was 63%, despite being a generation that has accumulated significant wealth.

How Much Americans Expect to Spend

Vacation budgets can vary greatly, depending on the financial situation of each American.

For example, 26% of Americans expect to spend between $1,000 and $1,999 on their summer vacation. At the same time, 20% will spend from $500 to $999, while 19% plan to spend between $2,000 and $2,999. And a huge percentage of 24% will spend $3,000 or more.

The Budget Gap Nobody Talks About

It's one thing to plan a budget. It's entirely different to follow it.

About 32% of Americans say they will not break their budget. However, 32% claim that they will most likely spend more than intended. Moreover, 25% will travel with a flexible budget and 12% won't have any budget at all. Thus, only about 43% of Americans will not exceed the initial cost estimate, while 57% will exceed it.

“Everyone can exceed the initially planned budget, but only the level of expenses varies greatly”.

Generation Z travelers tend to be more careful about finances and budget planning. Thus, 33% of Gen Z travelers expect to spend the planned amount of money. On the other hand, 33% of Gen Z will most likely exceed their budget. Moreover, Baby Boomers have a higher chance of exceeding their budget, as 37% of them will exceed it.

Smarter Spending: How Travelers Are Cutting Costs

The increase in prices does not mean that Americans stop traveling; they just find other ways to do so, as most of them make practical adjustments, not abandon traveling altogether.

The Most Common Cost-Cutting Moves

This is how Americans save money while traveling:

• Book cheaper accommodation (35%)

• Shorten the period of the trip (32%)

• Choose drivable destination (30%)

• Choose a cheaper destination (29%)

• Stay with friends or relatives (24%)

• Go traveling off-peak (20%)

• Go traveling less often (16%)

Only 12% say the increase in prices did not affect their travel plans at all, while another 12% chose to stop traveling due to increased prices.

Generation Z is adjusting to the situation most actively. Almost half (44%) of them intend to book cheaper accommodation, while only 15% of baby boomers want to do so. Another 32% of Generation Z chose a cheaper destination for financial reasons, whereas only 17% of baby boomers did it for the same reason.

Pro Tip:

Opting for traveling midweek rather than on weekends can reduce the expenses related to flights and hotels to a great extent. Add to it an off-peak destination, and you will see what difference it makes!.

Money troubles affect people regardless of their ages. More than half of American citizens indicate that they experience moderate worries regarding the costs of transportations (54%), accommodation (52%), and any extra expenses (51%). Planning vacations has transformed into determining where you can afford to go.

Where the Money Is Coming From

Although your spending plan has been made, and the destination determined, you still need the money.

In most cases, you use personal savings, as 55 percent of those surveyed state they will rely on them during vacation season. However, people opt for multiple sources of funds. Credit cards follow next, with 37 percent, followed by current earnings at 30 percent and side incomes at 18 percent.

Generational Differences in How People Pay

However, some travelers are opting for rewards or points (16%), and buy now, pay later (BNPL) options (9%). The use of a dedicated travel savings fund is employed by only 9%, implying that vacation costs are not being separated from other expenses.

There is also an intergenerational variance in how each generation funds travel expenses. Personal savings are predominantly relied upon by baby boomers (51%), whereas millennials are inclined to use credit cards (39%) and have a higher tendency to use travel rewards (18% versus 9%). Gen Z comes in first with BNPL, as 14% plan to utilize such services, significantly higher than the national average of 9%.

Although BNPL can provide some flexibility in making a trip financially feasible, it typically involves high-interest loans that do not contribute to building credit. This seemingly convenient service may end up creating hidden debt that persists even after the trip is completed.

The Real Cost of Vacation: Work, Sacrifice, and Trade-Offs

A trip isn't just about buying tickets. It's months in advance of saving, cutting costs elsewhere, and even working harder than before.

During the past year, 38% of Americans have decreased expenditures on everyday life to finance travel. Meanwhile, 25% have increased their workload and worked overtime, and 17% either reduced savings payments, accepted side gigs, or postponed a significant purchase. 

Moreover, 9% have dipped into an emergency fund, and 8% have been sick at work to maintain vacation days.

Younger Workers Are Carrying the Heaviest Load

For Gen Z, however, this trend has become even more evident. Among Generation Z respondents, 36% have worked overtime to finance travel, 23% have found part-time work, and 10% have worked when ill to prevent using vacation days.

It's worth noting that only 13% of boomers have worked overtime to cover travel expenses. Hence, labor seems to be the main resource for young people, and they use it to the fullest.

Overall, 77% of travelers will finance their trips by using a credit card, personal loan, or BNPL. 

Repayment terms include:

• Up to one month: 14%

• Two to three months: 22%

• Four to six months: 12%

• More than six months: 10%

Meanwhile, 23% prefer to avoid financing entirely and pay upfront, sidestepping interest and fees altogether.

Conclusion: Summer Travel Is Still Taking Place, but In a Different Way

It should not go without saying that while Americans love traveling, they are not willing to put in less effort than before to do so.

In 2026, Americans find themselves overspending during summer vacation and either going over budget in terms of vacation plans, or heading that way without any particular intention of reigning in their financial resources to keep things in check. But this does not mean that they will stop doing so, they are finding ways of traveling and spending money wisely, even sacrificing their sleep schedule, in order to take a break from the ordinary.

When planning a summer vacation, it is crucial to plan ahead financially, considering the entire price range and looking for cheaper options.