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Economic Concerns Aren't Grounding Summer 2025 Travel Intentions

Allianz Partners Logo (PRNewsfoto/Allianz Partners)

News provided by

Allianz Partners

Aug 19, 2025, 08:00 ET

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Allianz Partner USA's 17th Annual Vacation Confidence Index reports Americans are keeping vacation plans intact amid financial pressures.

RICHMOND, Va., Aug. 19, 2025 /PRNewswire/ -- Despite ongoing economic pressures, Americans remain determined to travel. However, the economic climate is reshaping how and who takes vacations in 2025. According to Allianz Partners USA's annual Vacation Confidence Index* three out of four Americans (75%) say taking an annual vacation is important, yet financial constraints remain the number one barrier for many.

The increase of "justi-vacationers" is a defining theme of 2025 travel. A "justi-vacationer" refers to Americans who take a vacation despite not being able to afford the expenses that come with traveling. This year, 51% of Americans admit they can't afford a vacation, yet 39% say they're likely to travel anyway, signaling a powerful emotional drive to get away. With 72% reporting they're in desperate need of a vacation, many are choosing to prioritize rest and escape, even if it means stretching their budgets.

This determination to travel comes as Americans are projected to spend a record-breaking $226.6 billion on summer vacations, with the average household expected to spend $2,867—a slight increase from $2,843 in 2024. The data paints a clear picture: for many Americans, the need for meaningful time off is worth the financial trade-offs, leading to shorter, more intentional trips or creative ways to cut costs without skipping the getaway altogether.

"Americans haven't lost their passion for travel, but for many it now comes with tough trade-offs. This is why it's so critical to have travel insurance," said Emily Hartman, General Manager at Allianz Partners USA. "So much time goes into planning and budgeting for vacations, especially when there is increased uncertainty in the economic landscape. Travel insurance can be your stability through uncertain times by protecting your hard-earned travel investment from covered losses and situations before your trip begins and while you're traveling."

Older Americans (aged 55+) appear to be less impacted by immediate financial constraints. According to the survey, only 33% of this group cited cost as their reason for skipping vacation, with many instead pointing to "other reasons," such as health concerns or lack of interest. This reflects a generational divide not just in travel behavior, but in economic resilience. Many older adults benefit from fixed incomes, paid-off mortgages, or more stable financial footing, making them less susceptible to current economic volatility.

Rising costs and tighter budgets may be reshaping how people travel, but not if they travel. For many, time away offers more than just leisure; it's a necessary reset, a chance to reconnect with loved ones, and an investment in mental health. Whether it's by shortening trip lengths, finding deals, or carefully budgeting, Americans are finding ways to make travel happen, even when finances are stretched. In a time of uncertainty, the value of a vacation remains constant: it's one of the few experiences that still feels truly worth it.

The Vacation Confidence Index has been conducted each summer since 2009 by national polling firm Ipsos Public Affairs on behalf of Allianz Partners USA. A vacation is defined as a leisure trip of at least one week to a place that is 100 miles or more from home.

Allianz Partners offers travel insurance through most major U.S. airlines, leading travel agents, online travel agencies, hotel companies, cruise lines and directly to consumers. For more information on Allianz Partners and available travel policies, please visit http://www.allianztravelinsurance.com/.

* *Methodology: These are the findings of an Ipsos poll conducted on behalf of Allianz Partners. For this survey, a sample of 2,005 Americans aged 18+ was interviewed from April 14 to 15, 2025 via the Ipsos Online Omnibus. The precision of Ipsos online polls is measured using a credibility interval. In this case, the results are accurate to within +/- 2.7 percentage points, 19 times out of 20, of what the results would have been had all American adults been polled. Quota sampling and weighting were employed in order to balance demographics and ensure that the sample's composition reflects that of the actual U.S. population, according to data from the U.S. Census Bureau. Credibility intervals are wider among subsets of the population.

About Allianz Partners
In the United States, Allianz Partners USA (AGA Service Company) offers Allianz Travel-branded travel protection plans and serves millions of customers each year. In addition to travel protection, the company offers event ticket protection, registration protection for endurance events and unique travel assistance services such as international medical assistance and concierge services. AGA Service Company is doing business as Allianz Global Assistance Insurance Agency in California (License # 0B01400) and Massachusetts. Allianz Partners USA is part of the Allianz Partners group. Allianz Partners is a world leader in B2B2C insurance and assistance, offering global solutions that span international health and life, travel insurance, mobility and assistance. Customer driven, our innovative experts are redefining insurance services by delivering future-ready, high-tech, high-touch products and solutions that go beyond traditional insurance. Present in over 75 countries, our 19,400 employees speak 70 languages, handle over 58 million cases each year, and are motivated to go the extra mile to offer peace of mind to our customers around the world.

For Allianz Partners USA products offered and sold in the U.S.: Terms, conditions, and exclusions apply to all plans. Plans are available only to U.S. residents. Not all plans are available in all jurisdictions. Availability of coverage, including the epidemic-related benefits and covered reasons described here, varies by product and by state. Products may not include all benefits or covered reasons described here. All benefits are subject to maximum limits of liability, which may in some cases be subject to sublimits and daily maximums. Benefits and limits vary by plan. For a complete description of the coverage and benefit limits offered under your specific plan, carefully review your plan's Letter of Confirmation/Declarations and Certificate of Insurance/Policy. Insurance coverage is underwritten by BCS Insurance Company (OH, Administrative Office: Oakbrook Terrace, IL), rated "A" (Excellent) by A.M. Best Co., under BCS Form No. 52.201 series or 52.401 series, or Jefferson Insurance Company (NY, Administrative Office: Richmond, VA), rated "A+" (Superior) by A.M. Best Co., under Jefferson Form No. 101‐C series or 101‐P series, depending on state of residence. A+ (Superior) and A (Excellent) are the 2nd and 3rd highest, respectively, of A.M. Best's 13 Financial Strength Ratings. Except as otherwise specified, AGA Service Company d/b/a Allianz Global Assistance is the licensed producer and administrator of Allianz Travel-branded travel protection plans in the U.S. and an affiliate of Jefferson Insurance Company. Allianz Global Assistance is a mark of AGA Service Company or its affiliates. The insured shall not receive any special benefit or advantage due to the affiliation between Allianz Global Assistance and Jefferson Insurance Company. Plans include insurance and assistance services. Noninsurance benefits/products are provided and serviced by Allianz Global Assistance.

SOURCE Allianz Partners

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