Despite ongoing economic pressures, Americans remain determined to travel. However, the economic climate is reshaping how and who takes vacations in 2025. According to Allianz Partners USA’s annual “Vacation Confidence Index,” three out of four Americans (75 percent) say taking an annual vacation is important, yet financial constraints remain the number one barrier for many. For this survey, a sample of 2,005 Americans aged 18+ was interviewed from April 14–15, 2025 via the Ipsos Online Omnibus.
The increase of “justi-vacationers” is a defining theme of 2025 travel. A “justi-vacationer” refers to Americans who take a vacation despite not being able to afford the expenses that come with traveling. This year, 51 percent of Americans admit they can’t afford a vacation, yet 39 percent say they’re likely to travel anyway, signaling a powerful emotional drive to get away. With 72 percent reporting they’re in desperate need of a vacation, many are choosing to prioritize rest and escape, even if it means stretching their budgets.
This determination to travel comes as Americans are projected to spend a record-breaking $226.6 billion on summer vacations, with the average household expected to spend $2,867—a slight increase from $2,843 in 2024. The data paints a clear picture: for many Americans, the need for meaningful time off is worth the financial trade-offs, leading to shorter, more intentional trips or creative ways to cut costs without skipping the getaway altogether.
“Americans haven’t lost their passion for travel, but for many it now comes with tough trade-offs. This is why it’s so critical to have travel insurance,” said Emily Hartman, general manager at Allianz Partners USA. “So much time goes into planning and budgeting for vacations, especially when there is increased uncertainty in the economic landscape. Travel insurance can be your stability through uncertain times by protecting your hard-earned travel investment from covered losses and situations before your trip begins and while you’re traveling.”
Older Americans (aged 55+) appear to be less impacted by immediate financial constraints. According to the survey, only 33 percent of this group cited cost as their reason for skipping vacation, with many instead pointing to “other reasons,” such as health concerns or lack of interest. This reflects a generational divide not just in travel behavior, but in economic resilience. Many older adults benefit from fixed incomes, paid-off mortgages, or more stable financial footing, making them less susceptible to current economic volatility.
Rising costs and tighter budgets may be reshaping how people travel, but not if they travel. For many, time away offers more than just leisure; it’s a necessary reset, a chance to reconnect with loved ones and an investment in mental health. Whether it’s by shortening trip lengths, finding deals or carefully budgeting, Americans are finding ways to make travel happen, even when finances are stretched. In a time of uncertainty, the value of a vacation remains constant: it’s one of the few experiences that still feels truly worth it.
The “Vacation Confidence Index” has been conducted each summer since 2009 by national polling firm Ipsos Public Affairs on behalf of Allianz Partners USA. A vacation is defined as a leisure trip of at least one week to a place that is 100 miles or more from home.
For more information, visit www.allianztravelinsurance.com.
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