U.S. Travelers Aren’t Pulling Back – They’re Planning Smarter and Spending More, According to Latest MMGY Research

Economic headwinds are reshaping how Americans plan, budget and prioritize leisure travel

Kansas City, MO (Jan. 8, 2026) – Annual vacation budgets among U.S. leisure travelers are projected to rise by nearly $700 over the next year, even as economic pressures persist, according to MMGY’s newly released Portrait of American Travelers™ “Winter Edition.”

Based on a survey of 4,500 U.S. adults, Portrait of American Travelers™ is the travel industry’s longest-running and most-trusted examination of leisure travel behavior in America. The “Winter Edition” finds that rather than canceling trips outright, travelers are fundamentally rethinking how they plan, book and experience vacations. From using AI tools and social media for inspiration to leaning on flexible payment options, travelers are adapting their approach to make travel happen.

“Travelers aren’t pulling back. They’re recalibrating,” said Simon Moriarty, Vice President of Syndicated Research at MMGY Travel Intelligence. “Consumers are being more deliberate, leaning on technology and flexibility to ensure travel remains a priority even as costs rise.”

While inflationary pressure on household budgets remains the biggest factor affecting leisure travel over the next six months, that concern has eased slightly since last quarter. At the same time, anxiety around potential airport disruptions has grown, contributing to near-term hesitation for some travelers.

Other key takeaways from the report include: 

• Flexibility Is the New Currency of Travel – As travelers adapt, flexibility and value are playing a larger role in booking decisions. One in 5 travelers has used “book now, pay later” services to help finance trips, with younger generations and families leading adoption. Meanwhile, 81% of travelers visit at least one online travel agency website or app when researching travel, mainly to compare prices and availability.
  
  Brand loyalty is also strengthening as travelers look to stretch their budgets. Membership in frequent flyer programs has climbed 10 percentage points over the past two years to 57%, reflecting increased focus on perks, rewards and value.
  
  
• AI and Social: From Nice to Have to Must-Have – Technology continues to transform travel planning as yesterday’s emerging platforms become today’s mainstream. Nearly half of travelers now use AI tools for trip research, a significant increase from last year, with ChatGPT leading usage. Still, trust remains essential: A majority of travelers say they place greater confidence in recommendations from human experts than in AI alone.
  
  Social media’s influence has grown as well, with 55% of travelers reporting that platforms such as Instagram and YouTube influenced their vacation choices. More than 6 in 10 active leisure travelers (61%) said that influencers have at least some impact on their travel decisions, while about 48% said the same about celebrities.
  
  
• Boomers Spend, Younger Travelers Experiment – Boomers are projected to spend significantly more on leisure travel over the next 12 months than other generations, while taking only marginally more trips, underscoring their resilience despite economic pressures. Younger travelers and families, meanwhile, are more likely to adopt AI tools, flexible payment options and social media as part of their planning process.

“What this means for the industry is that demand isn’t disappearing. It’s evolving,” Moriarty said. “Travelers are still willing to spend, but they expect smarter tools and experiences that clearly justify the investment. Brands that make planning easier and deliver clear value will be best positioned to win.”

Featuring these findings and more, the “Winter Edition” of Portrait of American Travelers™ is now available for purchase or as part of an all-access subscription to EurekA!, MMGY’s searchable research platform. To explore additional insights, visit mmgyintel.com. 

About Portrait of American Travelers^™
MMGY’s Portrait of American Travelers^™ is the travel industry’s longest-running and most-trusted examination of U.S. leisure travel behavior. Released quarterly, it provides a comprehensive analysis of the impact of current economic conditions, social values, and emerging travel habits and intentions. The “Winter Edition” is based on interviews with 4,500 U.S. adults conducted in October 2025, with generational insights from Gen Zers (18–28), Millennials (29–44), Gen Xers (45–60) and Boomers (61–79). Results from the Silent Generation (80+) are included in totals but not reported separately due to small sample size. 

About MMGY
As MMGY Global’s flagship integrated marketing and communications agency specializing in travel, tourism and hospitality – MMGY knows travel. Drawing upon our own research and insights from over four decades of working with clients around the world, we bring a new perspective to connecting travel brands with today’s traveler. Offering services from integrated marketing and creative to destination representation and PR, we provide our clients with unrivaled expertise. For more information, visit mmgy.com. 

Media Contact
Derek Klaus
MMGY Global
dklaus@mmgyglobal.com