Americans' top travel destinations and spending habits: 2024 insights

15-05-24

The American financial planning company Empower has released a detailed report on the travel habits and spending patterns of American tourists for 2024. The findings reveal a strong desire to travel, with over 90% of Americans planning domestic trips this year, spending an average of $1,163 per trip. The report provides insights into how Americans are managing their finances to accommodate their travel desires.

Key Findings

• Increased Travel Spending: Nearly half (47%) of Americans plan to spend more on travel this year compared to 2023.

• Preferred Travel Seasons: Summer is the most popular season for travel, chosen by 61% of travelers, with 35% planning trips during holiday weekends (Memorial Day, Labor Day), and 34% opting for off-season travel.

• Budget Preferences: Over half of Baby Boomers (52%) prefer budget-friendly travel options compared to younger generations.

• Funding Travel: 45% of Americans finance their travel with extra money from side jobs, 34% use tax refunds or bonuses, and 32% utilize travel rewards and loyalty programs.

• Travel Debt: Nearly 1 in 10 Americans (9%) have taken on debt to finance their travel, averaging $2,849.

Travel Trends and Preferences

Despite high inflation and rising costs, Americans remain committed to traveling. Many are planning at least two domestic trips this year, and nearly 2 in 5 (37%) are also planning international trips, averaging $2,904 per trip. Summer remains the most popular travel time, while a third of travelers choose off-season trips to save money.

Spending and Savings Strategies

• Advance Planning: Most Americans (35%) plan their trips 3 to 6 months in advance, while 17% plan spontaneously, booking within 4 weeks of departure.

• Cost-Cutting Measures: Many Americans cut back on dining out to save for travel. This trend is most prominent among Gen Xers (73%) and Millennials (69%). Additionally, one in five Millennials are postponing major purchases, such as buying a home, to fund their travels.

Financial Stress and Peer Pressure

• Debt for Travel: Spontaneous travelers are 71% more likely than meticulous planners to incur debt for travel, with 27% of these individuals needing over a year to repay their travel debt.

• Peer Pressure: A quarter of Gen Zers (24%) feel pressured by friends to take trips they cannot afford.

• Top Financial Stressors: These include eating out for every meal (51%), worrying about credit card bills upon returning home (29%), paying for special events and adventures (27%), and covering local transportation costs (24%).

Splurging Priorities

When it comes to discretionary spending, Americans prioritize dining (57%), experiences (47%), and lodging (41%). Gen Z is particularly inclined to splurge on experiences (52%), while other generations focus more on dining.

Travel Destinations

For domestic travel, the top destinations are New York City, Las Vegas, and Honolulu. Internationally, Tokyo, London, and Paris are the most sought-after locations. Tokyo is especially popular among Gen Z travelers, with nearly 3 in 10 expressing a strong interest in visiting.

Travel Priorities

American travelers have various priorities, including relaxation (57%), family time (51%), adventure (47%), enjoying nature and wildlife (36%), and culinary experiences (30%). Gen Z travelers are most likely to seek adventure (69%), while Baby Boomers prioritize relaxation (61%).

Conclusion

Amid economic challenges, Americans continue to prioritize travel, adjusting their budgets and spending patterns to focus on meaningful experiences. The survey, commissioned by Empower and conducted from March 14-18, 2024, provides valuable insights into the evolving travel habits of American consumers.

Empower is a leader in financial planning, investing, and advice, dedicated to creating financial freedom through innovative solutions. Connect with Empower on Empower.com and subscribe to The Currency™ for the latest insights on money, travel, and lifestyle trends.