Economic Pressures Shift Travel Behaviors -- But Most Americans Still Aren't Giving Up Their Vacations

ST. PETERSBURG, Fla., April 24, 2025 /PRNewswire/ -- Despite inflation and economic concerns, travelers are standing firm. A new survey by Squaremouth, the nation's top travel insurance comparison site, reveals that many travelers are still taking their vacations — though not without a few compromises.

In the survey of over 2,000 travelers, Squaremouth found that 65% said their travel spending for the rest of the year has not been impacted by current economic conditions. For the 35% who are tightening their budgets, many are adjusting how — not whether — they travel.

Travelers Are Adapting, Not Canceling

Rather than cancel trips outright, travelers are finding creative ways to stretch their travel budgets:

• 38% said they're exploring more affordable destinations, like Poland, Finland and Austria
   
• 26% have opted to stay closer to home, or within the US, rather than going overseas
   
• Only 17% have shortened their vacations due to budget constraints

"This data shows that people are still eager to travel," said Ned Tadic, Manager of Public Relations at Squaremouth. "While economic pressures are influencing how they plan, most travelers are simply tweaking or adjusting their approach—not canceling their trips."

Rising Costs, Shifting Habits

These findings echo Squaremouth's earlier report highlighting a 38% increase in summer travel costs year-over-year, with the average international trip now exceeding $10,000.

Despite these rising costs, travelers are still prioritizing vacation time — and protecting their investments. Squaremouth found that 77% of travelers were more or equally concerned with protecting their trip investment compared to previous years, suggesting financial awareness is at an all-time high.

Key Travel Tips for 2025 Travel

1. Buy Travel Insurance Early: The earlier you purchase your travel insurance policy, the longer you'll be protected against unexpected cancellations. Consider securing coverage as soon as you make your first trip payment.
2. Choose the Most Affordable Policy: More expensive doesn't always mean better when it comes to travel insurance. If you find a policy that offers the same coverage at a lower cost, it's likely because it aligns with your specific needs, not because the coverage is inferior.
3. Avoid Overinsuring Your Trip: Only insure the trip expenses you'd lose if you had to cancel. For instance, if you're only subject to a 50% cancellation fee for a hotel, insure that amount rather than the full hotel cost.

Methodology: Squaremouth polled more than 2,000 customers regarding 2025 travel to determine whether or not recent economic conditions have impacted their plans among those buying travel insurance. The survey was sent to all Squaremouth customers between 4/14/2025 and 4/23/2025.

About Squaremouth
Squaremouth is a trusted name in the travel insurance industry offering comprehensive, transparent, and competitive coverage to travelers for 20 years through its digital platform. With the largest portfolio of travel insurance carriers and products in the U.S., Squaremouth has insured over 4 million clients.

Media Contact
Ned Tadic
[email protected] 

SOURCE Squaremouth