How Recession Fears are Changing Travel Plans in 2025

How Recession Fears are Changing Travel Plans in 2025

Cliffs and sandy beach on the Pacific Ocean coastline near Half Moon Bay, California

As costs rise and recession fears grow, Americans are reconsidering both their vacation plans and destinations for 2025. Travelers are getting creative—balancing their dreams of relaxation and adventure with the practicalities of a tighter budget.

From road trips and staycations to strategic booking habits, vacationers are finding creative ways to stretch their dollars without giving up their much-needed beach breaks. A new study by Beach.com looks at how Americans are adapting their travel habits and vacation plans during an uncertain economic time.

Table of Contents

Key Findings

  • 61% of Americans are concerned about a recession impacting their vacation plans, and 72% say they’ll adjust their travel habits if a recession occurs.
  • 75% expect travel costs to rise in 2025 compared to 2024, prompting 47% to choose more affordable destinations.
  • 67% of Americans are considering alternative vacation options, with 72% opting for road trips and 61% planning staycations.
  • Despite economic uncertainty, 44% of travelers do not plan to purchase any travel insurance.

How Americans Are Adjusting Vacation Plans Amid Recession Concerns

Infographic with data on how Americans are preparing to travel during a potential recession.

With more than 60% of Americans worried about how a recession could affect their travel plans, vacationers are finding creative ways to “recession-proof” their trips. Nearly half (47%) are choosing to travel to more affordable destinations, while over a third (37%) are turning to budget-friendly stays like Airbnbs and hostels. Another third (35%) are cutting back on the number of vacations planned for 2025, while another 34% are booking trips during off-peak seasons. More than 3 in 10 will rely on hotel and flight price-tracking tools.

2 in 5 Americans say the current economy has already impacted their travel plans for 2025, but 1 in 10 are prioritizing travel in their 2025 budgets.

With 75% expecting higher prices for travel in 2025, many travelers are debating whether booking closer to their travel date (35%) or planning further ahead (65%) is the smarter financial move. Of those booking and planning closer to their travel dates, 25% are booking as late as 1 week before traveling, while more than half (52%) are booking 1 to 2 months before their trip. No matter which strategy travelers choose, flexibility and planning ahead will be key to navigating vacation plans during uncertain economic times.

How Recession Concerns Are Changing Travel Plans in 2025

An infographic showing how recession fears are influencing American travelers.

If a recession hits in the next year, almost 3 out of 5 Americans say they’ll adjust their travel habits. In fact, 67% are already considering alternative vacation options due to recession concerns, with road trips (72%) and staycations (61%) topping the list. Others are leaning into local adventures—55% plan to take day trips or excursions nearby, and 44% will visit national or state parks. Another 43% say their trips will revolve around staying with family or friends.

Even beach vacations are shifting, with 52% of travelers opting for budget-friendly accommodations, while 1 in 4 prefer a shorter stay at a luxury resort, and nearly a quarter (23%) plan to skip beach trips altogether. And despite economic uncertainty, nearly half (44%) of travelers don’t plan to purchase travel insurance, though more than 3 in 10 are considering “cancel-for-any-reason” coverage to play it safe. More than 1 in 10 will buy insurance that covers job loss or layoffs, while nearly 1 in 5 will purchase standard trip cancellation insurance.

Ultimately, travelers are adapting their vacation strategies to stay flexible and keep trips within reach, no matter what the economy brings.

Enjoying the Beach on a Budget in 2025

As Americans navigate economic uncertainties in planning their 2025 vacations, beach getaways remain a beloved escape—even if travelers are adjusting how they enjoy them. From budget-friendly stays and local beach trips to road adventures and staycations, vacationers are determined to experience the relaxation and joy of the coast without overspending.

At Beach.com, we’re committed to making your beach dreams possible, no matter the budget. Our expert guides provide inspiration and tips for affordable beach vacations, and we encourage our community to participate in beach cleanups to preserve these stunning shores.

Methodology

In March 2025, we surveyed 1,001 Americans nationwide for their feedback on planning vacations and travel plans despite the potential recession and current economy. Respondents were 49% female, 49% male and 2% nonbinary, with an age range of 18 to 78 and an average age of 42.

Fair Use

When using this data and research, please attribute by linking to this study and citing Beach.com

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