The 23 percent cut nobody is calling a cancellation

The 23 percent cut nobody is calling a cancellation

American travel budgets are down about a quarter this year, but people are shrinking their trips instead of skipping them, and the cuts follow a clear order.

Marieke van der Velde

An overhead view of hands packing folded clothes into an open suitcase on a plain surface, no identifiable people and no readable brands or logos, for the piece on travelers trimming their budgets rather than cancelling trips

Photo Surface / Unsplash

American travel budgets are down 23 percent, but people are shrinking the trip, not skipping it. A CheapCaribbean survey found 58 percent planning to spend less. The line that broke ranks is airfare, up 26.5 percent year on year against 3.4 for eating out, which is why 35 percent are driving instead of flying.

The cuts land in a clear order:

Dining out first (42 percent), then shopping and souvenirs (40).
Trip length next (33), but a shorter trip is still the trip.
Only then the upgrades, the premium seat and nicer room (32).

The top of the market, though, spends more: Deloitte calls it a bifurcation of premium and luxury. And 72 percent will move their dates, the lever that pays best, because a Tuesday costs less than a Saturday for an identical sight. The best part of a trip, 66 percent say, costs nothing.