Despite economic headwinds and tighter household budgets, the American vacation is proving remarkably resilient. New data from the 2026 Portrait of American Travelers™ “Fall Edition,” released by MMGY Global, reveals that U.S. leisure travel is entering a period of significant growth, with consumers increasingly prioritizing getaways as a non-negotiable expense.
According to the comprehensive report, which surveyed 4,500 U.S. adults, travel demand has seen a notable rebound since the summer. Americans now expect to take an average of 3.9 vacations over the next 12 months, up from 3.5 in the previous quarter. Furthermore, planned leisure travel spending is projected to reach $5,655 per household annually.
However, the way Americans reach these figures is shifting. Rather than abandoning travel, consumers are becoming highly strategic, utilizing off-peak travel periods (35%) and cutting discretionary spending in other areas of their daily lives (32%) to protect their holiday funds.
“Americans continue to tell us that travel is something they’re willing to protect, even when household budgets are under pressure,” said Simon Moriarty, MMGY’s Vice President of Syndicated Research. “What’s changing is how they make those trips possible. Travelers are becoming more strategic about when they go, where they spend and what they consider worth paying.”
The report highlights a growing fragmentation in the market, driven by generational and income divides. A stark example of this disparity is seen in spending expectations: Boomers anticipate spending $8,796 on travel over the coming year, more than four times the $2,195 budget projected by Gen Z travelers. Consequently, the definition of “value” is no longer universal, with travelers prioritizing quality time with loved ones and meaningful experiences over simple price points.
Domestic travel remains the beneficiary of this budget-conscious environment, with 64% of respondents citing the lower cost of local trips as a primary motivation for staying within the U.S. Outdoor adventure remains a cornerstone of these plans, with national icons like Yellowstone and the Grand Canyon continuing to dominate destination wish lists.
Technological shifts are also leaving their mark on the industry. AI adoption for travel planning has surged to 51%—a year-over-year increase of 11 percentage points. Among Gen Z travelers and families, adoption is even higher, reaching 71% and 68%, respectively. Despite this, the human element remains vital; only 4% of travelers rank AI among their top three planning steps, indicating that while AI is excellent for inspiration and initial research, consumers are not yet ready to hand over the booking process to algorithms.
As the travel landscape grows more complex, MMGY suggests that industry brands must move beyond generalized marketing. To capture future demand, destinations and travel providers must develop a nuanced understanding of exactly what different demographics prioritize, ensuring that the services offered align with the evolving, highly specific needs of the modern American traveler.
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