Americans are cutting back on travel due to its high cost.

Travelers may have finally had enough.

This summer, travelers are planning fewer trips or skipping their vacations due to the end of revenge travel and depleted pandemic savings.

According to a summer travel report from Deloitte Insights, the number of Americans planning to take leisure trips is decreasing after two consecutive years of growth.

Major companies such as Marriott, Hyatt, Wyndham, and others anticipate a decline in travel demand this year, as indicated by the close of the second-quarter earnings season.

'Too expensive' to travel now

According to Deloitte's survey of over 4,000 individuals, Americans are planning fewer trips this summer, with an average of 2.3 trips compared to 3.1 trips in the summer of 2023.

The percentage of people who are avoiding summer travel altogether increased from 37% to 42%, according to a report. When asked why they're staying home, nearly a third of respondents said "travel is too expensive right now," which is an eight percentage point increase from 2023, as per Deloitte.

A majority of travelers plan to spend less on their trips, with shorter excursions being the most popular choice.

While 19% of respondents plan to spend more in 2023 (down from 25% in 2023), this may not be due to personal preference but rather a sense of obligation.

According to the report, the primary reason for increased spending is due to rising prices, rather than more ambitious travel plans.

Younger people pull back on 'fun'

This summer, there was a decrease in average spending on discretionary goods and services, including travel, clothes, and home furnishings, according to economist Sofia Baig of the data intelligence company Morning Consult.

According to a July report by Morning Consult, the largest reductions in spending are among Gen Zs and millennials, specifically in the category of concerts and sports events.

Baig suggested that a decrease in airfare and hotel expenses could indicate a normalization of the market after the conclusion of revenge travel.

According to the report, younger adults are still spending money on personal care products, restaurant food, and alcohol, despite reducing their budget for "fun."

As Covid-related travel restrictions began to ease, the oldest members of Gen Z entered adulthood and made their mark on the travel scene.

Despite a lack of funds, older travelers were able to pursue their travel ambitions thanks to social media and travel influencers.

Younger travelers see traveling as a crucial aspect of their mental well-being rather than a luxury expense.

In their 20s, while their parents were saving for wedding rings, homes, and a nest egg to cover six months of expenses, the Gen Z mindset is focused on seizing the day rather than preparing for unexpected events.

But there is a limit to this mentality, said Baig.

She stated that while travel is "vital to their well-being," it is not as crucial as fulfilling basic needs such as paying rent or purchasing groceries.

She said that they are "putting their money where their mouth is" by "allocating a larger share of their budget to travel than older generations."

According to a report from travel company Hopper, Gen Zs who earn less than $50,000 annually spend up to 49% more on travel than older people who earn the same amount.