Americans are cutting travel costs with micro-vacations, travel stacking and rewards as rising gas prices push travelers to spend smarter.
Americans continued to prioritize travel this summer, but many travelers found new ways to stretch their budgets as higher gas, airfare and lodging costs put pressure on household spending.
New Bank of America data shows consumers were not necessarily giving up vacations. Instead, they were becoming more strategic about where they spent their money, choosing shorter getaways, combining trips and using financial rewards to reduce costs.
The shift comes as Labor Day marks the unofficial end of the summer travel season, with Americans balancing the desire for memorable experiences against rising travel expenses.
Micro-vacations gain popularity
One of the biggest trends identified in the Bank of America survey was the growing popularity of shorter trips, or “micro-vacations.”
These brief getaways allow travelers to take a break without paying for an extended hotel stay, long-distance airfare or other costs associated with a traditional vacation.
About one in five Gen Z travelers said they planned to take shorter trips this year compared with previous years, according to the bank’s findings.
More than half of Americans surveyed also planned to stay closer to home, including by traveling across state lines instead of taking more expensive long-haul flights.
The trend suggests travelers are increasingly looking for experiences that deliver the feeling of a vacation without the full price tag.
‘Travel stacking’ helps Americans save
Another strategy gaining traction is known as “travel stacking.”
Rather than booking a separate vacation, travelers are extending trips they already planned around weddings, concerts, sporting events or other live entertainment.
Bank of America found that nearly one-third of people traveling to live events chose to extend their trip to explore the destination rather than return home immediately.
That approach allows travelers to spread transportation costs across multiple purposes while getting more value from a trip they were already planning to take.
Higher gas prices change travel budgets
Fuel costs have also influenced how Americans allocate their travel budgets.
Bank of America found that 23% of survey respondents planned to reduce the number of trips they take because of rising fuel costs. However, 31% said gas prices had not affected their travel plans.
Among those who were traveling, about 22% said they planned to reduce spending on accommodations and food to offset higher fuel costs.
The findings show that higher expenses do not always result in travelers abandoning their plans. Instead, some consumers are shifting spending from one part of a trip to another.
Travelers turn to credit card rewards
Financial rewards are another tool Americans are using to make travel more affordable.
About 46% of consumers said they planned to redeem financial rewards during the summer, including credit card points, banking loyalty benefits and similar offers.
Gen Z consumers were particularly likely to use rewards, with 80% planning to redeem them, compared with 60% of millennials, 35% of Gen X and 19% of baby boomers.
Travelers are also paying attention to additional benefits offered by financial institutions. Bank of America found that consumers considered enhanced credit card rewards, personalized cash-back offers, travel fraud protection and exclusive travel experiences when planning their trips.
Americans still want memorable experiences
Despite the pressure on household budgets, the data suggests Americans have not abandoned their desire to travel or spend on experiences.
Instead, consumers appear to be making deliberate trade-offs.
Some are choosing a cheaper flight but spending more on a memorable meal or well-located hotel. Others are shortening vacations, staying closer to home or combining multiple reasons for a single trip.
“People aren’t cutting travel out. Instead, they’re being intentional about where the money goes,” Mary Hines Droesch, Bank of America’s head of consumer and small business products and analytics, told FOX Business.
That approach could continue beyond the summer as travelers face higher transportation and accommodation costs.
For many Americans, the new vacation strategy is not about spending less on travel altogether. It is about making each dollar go further—and getting more experiences out of every trip.
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