US Travel Budget Drops to $5,687 as 48.5% Expect a Recession

The average annual travel budget for Americans dropped to $5,687 from $6,068 a year ago, according to Future Partners' "State of the American Traveler" survey reported by Hotel News Resource.

The proportion of Americans expecting a recession rose to 48.5%, the highest rate since May, reflecting growing pessimism that is prompting households to cut back on travel and entertainment expenses.

Conversely, 57.3% of respondents said they took an overnight leisure trip in the past month, nearly unchanged from 57.5% in the previous survey but above the 49.6% reported in September 2025, while a one-week domestic trip was booked approximately 10.4 weeks in advance, and 32.2% of travelers used artificial intelligence to plan their trips.

This shift matters to the global hospitality and tourism sector, as declining consumer confidence puts pressure on international travel demand, while booking patterns shift to shorter durations and closer markets to curb costs.

What do these terms mean?

Recession: A contraction in economic activity that lasts for months, accompanied by a decline in spending, investment, and jobs.

Generative Artificial Intelligence: Tools that generate text and suggestions based on user prompts, which travelers use to organize trips.

Domestic trips: Travel within the same country, which is usually less expensive than international travel.