Dive Brief:
- Some 122.4 million Americans will travel at least 50 miles from home between Dec. 20, 2025, and Jan. 1, 2026, according to new findings from AAA.
- That number projected of travelers is up 2.2% from 2024’s year-end holiday period, suggesting a continued desire to travel, Stacey Barber, vice president of AAA Travel, said in a release. This comes after broader economic uncertainty roiled the U.S. travel landscape throughout 2025.
- Despite a greater number of Americans traveling this holiday season, hospitality experts have forecast that trip budgets are down compared to last year and fewer travelers are planning to stay at hotels.
Dive Insight:
AAA projects 109.5 million Americans will travel by car during 2025’s year-end holiday period, a 2% increase over last year. According to AAA, driving is the overwhelming favorite mode of transportation among travelers this year because of its convenience and low cost.
This holiday season, travelers have significantly lower budgets than last year, Deloitte found in its 2025 Holiday Travel Survey, published last month. Average planned travel budgets are down 18% year over year to $2,334, per the report. Meanwhile, the percentage of U.S. holiday travelers who planned to stay at a hotel between Thanksgiving and early January this year is down to 59%, compared to 62% in 2024, according to Deloitte.
Hotels, though, remain the top lodging choice for both leisure and business travelers this holiday season, the American Hotel & Lodging Association reported this fall. An AHLA survey conducted by Morning Consult in September found that travelers going on romantic getaways and solo trips were especially likely to choose hotels, while those visiting family were more likely to stay with relatives.
“Americans want to travel, and they overwhelmingly trust and depend on hotels when they do,” AHLA President and CEO Rosanna Maietta said in a release. However, she added, “it’s clear that rising costs and economic uncertainty are having a lingering effect on travel plans.”
According to the AHLA survey, travel intention was down slightly from last fall and winter, with 45% of respondents citing rising costs across the economy as the top reason for scaling back plans.
This holiday season, a roundtrip domestic flight is 7% more expensive than last year, averaging nearly $900 a ticket, according to AAA. Flights on the days leading up to Christmas Day are the most expensive.
Despite the price hike, a record 8.03 million travelers will take domestic flights this holiday season, up 2.3% year over year, per AAA.
