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Travelers are increasingly searching for deals or opting to travel by bus.


Consumers are looking for ways to travel on tighter budgets, with many opting for cheaper options like long-haul bus rides or staying home altogether. Travel demand has decreased, as even high-income households are spending less on hotel rooms. Some consumers are making changes to their travel plans based on pricing and timing, such as opting for lower star-rated hotels or seeking out Airbnbs. Middle-income travelers are more likely to stretch their budgets to stick with their plans, while those with lower incomes are pulling back. Affluent consumers are dominating the holiday travel season and plan to continue leisure travel this year. On the budget end of the market, consumers are facing trade-offs like thinner amenities at economy-level hotels. Hotel room rates have fallen slightly year over year, but operators are trimming costs to keep prices steady. Some travelers are opting for day trips to avoid paying for lodging, while domestic airfares are currently 12% higher than in January 2024. Prices are expected to continue to rise in the coming months, with the late spring and summer projected to have airfares above 2024 levels by double digits.

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