Financial Confidence Declines Modestly
Financial sentiment among American travelers declined in August after improving sharply in the previous month, according to Future Partners’ latest State of the American Traveler study. The share of travelers who said their households were better off financially than a year earlier fell to 34.0%, down from 35.6% in July. Meanwhile, 25.2% said they were worse off financially, up from 23.7% a month earlier.
Younger travelers and parents remained more positive about their finances than other groups. About half of Gen Z travelers (50.8%) said they were better off than a year ago, as did 48.5% of parents with school-aged children. Gen X and Baby Boomer travelers were more cautious, with 27.3% and 24.3%, respectively, reporting that they were financially better off.
Expectations for the next year were largely unchanged. About 46.1% of travelers expected their financial position to improve over the coming year, compared with 46.4% in July. At the same time, concern about a possible recession continued to ease. The share expecting a U.S. recession within six months fell to 43.8%, down from 45.0% in the prior month.
However, more travelers said they were being careful with money because of recession concerns. Just over half, 50.6%, reported taking a cautious approach to spending. The difference was pronounced by income. Nearly 60% of travelers earning less than $49,000 annually said they were watching their spending, compared with 37.8% of those earning $200,000 or more.
Travel Budgets and Spending Priorities Pull Back
Travel spending confidence also softened in August. The share of travelers who said it was a good time to spend on leisure travel fell to 34.3%, from 37.7% in July. In addition, 56.9% said leisure travel was a high spending priority over the next three months, down from 61.2% a month earlier.
Average annual leisure travel budgets declined to $5,340, compared with $6,022 in June and $5,840 at the same point in 2025. The survey found wide differences between income groups. Travelers earning at least $200,000 reported average leisure travel budgets of $12,263, while those earning less than $49,000 reported budgets averaging $1,940.
Despite lower spending confidence, many travelers continued to view trips as worthwhile. A total of 56.6% agreed that travel is a worthwhile investment even during a recession. Parents of school-aged children and Millennials were particularly likely to prioritize leisure travel spending, while Boomers and Gen X travelers expressed lower levels of commitment.
The outlook for travel spending over the next 12 months also weakened. About 31.4% expected to spend more on leisure travel, down from 33.3% in the prior survey. The share expecting to spend less increased to 19.3%, from 16.8%.
Recent Travel Activity Remains Stable
Although sentiment and budgets declined, recent travel behavior remained relatively steady. More than half of American travelers (56.2%) said they had taken an overnight leisure trip in the past month. That was unchanged from July and above the 54.1% recorded a year earlier.
Trips to visit friends and relatives also increased slightly, with 52.0% reporting an overnight visit, compared with 50.6% in the previous month. Leisure day trips rose to 57.8%, from 57.0%.
Gen Z travelers and parents of school-aged children reported the highest rates of overnight leisure travel, at 68.2% and 67.0%, respectively. Boomers had the lowest rate, with 45.4% reporting an overnight leisure trip.
The survey indicated that travelers may not be abandoning plans but are committing to them later. The share of respondents with no trips planned through 2027 rose to 16.2%, from 12.2% in July. Travelers with lower incomes were much more likely to have no trips planned: 26.0% among those earning under $49,000, compared with 8.0% among those earning at least $200,000.
Planning Windows Continue to Shorten
Travelers are increasingly waiting until close to departure to plan domestic trips. Nearly one-quarter (24.6%) said they typically begin planning a week-long domestic leisure trip 1 to 4 weeks before leaving. That was up from 22.7% in July, 21.6% a year ago and 17.6% in February.
Only 7.6% said they usually plan trips 25 weeks or more in advance. The average planning period was 10.2 weeks, a decline of more than half a week compared with July 2025.
This trend was also reflected in the number of travelers reporting near-term plans. In June, 33.9% said they intended to travel in August. By August, only 29.5% reported plans for that month. Plans for September and October were relatively unchanged, suggesting that some travelers may be delaying decisions rather than canceling trips entirely.
Road Trips Gain Ground Over Air Travel
The survey found a significant shift in transportation preferences. Air travel was preferred by 39.0% of travelers, down from 42.8% in July and 47.7% in April. By contrast, the share preferring road trips reached 35.1%, up from 26.3% in April.
The preference for driving was strongest among lower-income and rural travelers. Nearly half (49.9%) of travelers earning under $49,000 preferred road trips, compared with 12.2% of those earning $200,000 or more. Among rural travelers, 53.7% said they preferred driving.
Higher fuel costs may complicate that shift. While more travelers are choosing to travel by car, gasoline prices were also among the most frequently cited barriers to taking trips.
AI and YouTube Play Larger Roles in Travel Research
Digital research habits are changing alongside travel planning patterns. About 30.6% of travelers said they had used AI tools to plan or prepare for a trip during the past 12 months. That was up from 23.9% a year earlier.
YouTube was the most-used social platform for travel planning, cited by 34.9% of travelers. Facebook followed at 31.5%, while Instagram was used by 27.8% and TikTok by 19.9%.
Official destination websites remained part of the research process for 23.6% of travelers. However, the share relying on websites found through search engines declined to 32.7%, compared with 34.8% a year ago.
Costs Remain the Main Barrier to More Travel
Travel costs were the main reason Americans said they had not traveled as much as they wanted during the previous six months. About 36.1% cited travel being too expensive, up from 30.4% a year earlier.
Gasoline prices were a growing concern. A total of 32.0% cited expensive gas as a barrier, nearly double the 17.0% who cited it a year ago. Airfare was cited by 27.3% of travelers, also increasing from the prior year.
Work-related barriers declined. The share citing work obligations fell to 19.8%, while 13.9% cited insufficient paid time off. The findings suggest that affordability has become a more significant restraint on travel than scheduling or workplace limitations.
America 250 Generates Overnight Travel
The United States’ 250th anniversary celebrations have prompted travel for a portion of the population. About 22.2% of travelers said they had taken at least one trip specifically connected to America 250 in 2026.
Participation was highest among Gen Z travelers and parents of school-aged children. Nearly 38% of Gen Z respondents and 34.3% of parents reported taking an America 250 trip.
Most of those trips included overnight stays. Among America 250 travelers, 79.2% reported at least one overnight trip, with average spending of $1,865. Urban destinations were the most common places visited, followed by national parks and beach destinations.
