The holiday season of 2025 will be leaner for U.S. shoppers, but not for travelers. According to a new PwC survey, overall holiday spending will fall by 5%, marking the first decline since 2020. Yet, there is one bright exception: travel and entertainment are holding steady, even showing a 1% uptick.
Travel Still Ranks Above Presents
While gift budgets are shrinking—down 11%—nearly half of Americans (44%) still plan to pack a bag this holiday season, a figure almost unchanged from 2024. Generational divides tell the real story:
- Millennials & Gen Z: 55% intend to travel
- Boomers: Only 26% plan trips
- Main reason: visiting friends and relatives (48%), reinforcing the enduring “VFR” trend
Those staying home often cite cost, with 43% of respondents (and half of Gen Z) calling it the main barrier.
Generational Wallet Wars
Spending patterns vary dramatically by age group:
- Gen Z: down 23% after last year’s +37% surge
- Millennials: essentially flat (-1%)
- Gen X: up 2%
- Boomers: up 5%
For the travel industry, that means premium opportunities with older travelers and value-for-money demands from younger ones.
AI Becomes the New Travel Agent
The survey reveals a striking shift: 76% of Millennials say they are likely to use AI to research trips. Companies that fail to make pricing and content “AI-readable” risk being invisible in this new assistant-first booking era.
Even in a season of cutbacks, Americans are channeling budgets into shared experiences. Transparent pricing, flexible fares, and tangible perks are no longer optional—they are the trust currency of travel.
Thanksgiving falls late this year (November 27), compressing the holiday calendar and pushing travelers toward shorter, last-minute bookings. Tour operators will need flexible cancellation policies and quick-fire promotions to capture the rush.
Survey Snapshot
PwC gathered responses from 4,000 U.S. consumers between June 26 and July 9, 2025. The sample was balanced by gender, region, and generation, with 1,000 participants from each: Gen Z, Millennials, Gen X, and Boomers.
Holiday 2025 may be leaner on wrapped gifts, but travel remains non-negotiable. For providers ready with clear value, AI-friendly platforms, and targeted offers, this could be the year where “less shopping” translates into “more flying.”