Consumers aren't ready to ditch their travel plans despite growing economic gloom. But they arehunting for bargains— and hoping to find them on the open road. Some 53% of U.S. consumers are planning vacations this season, up from 48% a year ago,Deloitte researchers reportedTuesday. There's especially strong interest in brief but more frequent trips closer to home, including by car, as travelers take a "more frugal approach" this year, the analysts said. Chris Narvaez, 45, had planned to visit London and Rome this summer.Airfares to Europe are down 8%, according to travel booking platform Hopper, but the New York City-based human resources director said he's "hitting the pause button" on overseas travel. "Between new requirements for visas, the current administration, challenges with air traffic control andnear misses at local airports, I don't feel as comfortable as I would getting on a plane," he said, referring toupdated IDandentry rulesalong withincreased customs stops. Instead, he'll stick to the East Coast — with jaunts to Woodstock, New York; Washington, D.C.; and Martha's Vineyard, Massachusetts — piling into the car with friends and his 15-year-old shepherd mix, Eli. Alexisa Humphrey, owner of Sugar and Spice Travels in Lebanon, Tennessee, said her customers are still venturing out. But like Narvaez, "they are doing shorter, more budget-friendly trips," she said, citing some of the same travel concerns. "I have had clients cancel flights and drive or book a train instead." Highway drivingremains far more dangerousthan commercial air travel or passenger rail, federal data shows. But recentair traffic control issuesat Newark Liberty International Airport have spooked many travelers, Humphrey said. Travel volumes at the busy New Jersey airport aredown 20% from this time last year, NBC News reported Tuesday. Cost is also a factor. While round-trip domestic flights arehitting three-year lows, according to Hopper, driving typically remains much more affordable. Gas isabout 40 cents cheaperheading into Memorial Day than a year ago, according to AAA, whichexpects a record 45.1 million peopleto travel at least 50 miles from home over the long holiday weekend. That would mark a more than 3% jump since 2024, the highest level in 20 years. U.S. consumers have been trimming their vacation budgets asprice-hike headlines proliferateandeconomic sentiment tumblesto historic lows. Travelers told Deloitte in March that they were planning to spend an average of $3,987 on their main summertime trips, about 13% more than a year earlier. Just two weeks later, though — asfrenzied tariff news rattled stock markets— that estimate shrunk to $3,471, less than 1% more than in 2024. Latisha Hunt, a real estate agent and Air Force veteran in Biloxi, Mississippi, is one of Humphrey's clients who recently adjusted her summer plans. She shortened a trip to Panama in early July from seven days to three and will drive 5½ hours to Atlanta's airport rather than fly out of a smaller one closer to home. "It's more affordable and allows me to better manage my overall experience," said Hunt, 39, who's also planning car trips in coming months to Alabama, Tennessee, Ohio and Michigan. "I'll be staying with family and friends along the way, which helps keep costs low and adds a more personal, meaningful touch to each visit." Hunt will have plenty of company on the roads. Among drivers surveyed at the pump by gas station video network GSTV this winter,56% said they planned to drive moreon their summer vacations than they did last year; 54% reported choosing driving over flying to save money. Many summer road trippers are on tighter budgets. Bank of America researchers found drivingthe top mode of transportfor lower- and middle-income vacationers this summer — preferred by at least 64% of each group, compared with less than 55% of high-earners. The good news is thatrental car costswere down about 2.1% in April from the year before, according to federal data, and Hopper expects them to stay roughly flat with 2024 levels throughout the summer. But as major rental car operators have adjusted to slower demand, some — includingAvis Budget GroupandHertz— are slashing their fleets, which could reduce vehicle selection. Car travelers may also need to budget extra for parking at airports and hotels, many of which tack on fees that can range from just a few dollars to$80 a day. Driver-friendly hotels along major highways and outside of urban areas frequently offer free daily parking, but overnight ratescan still top $100 per nightat high-demand lots. In fact, road trippers are a fast-growing slice of accommodation operators' business. Hotel parking revenues surged 18% between 2019 and 2024, according to real estate and investment firm CBRE. Hotel revenue overall grew less than 7% over the same period. "This should not be interpreted as more people driving to hotels," said Robert Mandelbaum, hotel research director at CBRE. "It is a combination of hotels charging more for parking and more hotels charging for parking that did not before Covid."
