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Memorial Day ushers in the traditional start of the U.S. summer travel season, but many Americans are reworking plans as fuel prices and other travel costs rise. Higher gasoline and jet-fuel costs tied to the Iran war and other inflationary pressures are pushing households to make tradeoffs—switching long trips for long weekends, choosing closer destinations, and finding ways to reduce daily expenses once they arrive.
For Stephanie Bernaba, a mother of three living in coastal Rhode Island, the shift has meant trading pricier summer travel for more local time outdoors. She said she’s been doing more “quality time” and getting “fresh air,” while also trying to keep the family from “spending an arm and a leg.” As a result, she has moved away from longer stays in Florida and an annual Disney World visit around her birthday toward beaches, bike rides and hiking trails nearer home.
Analysts say those kinds of adjustments are affecting the broader season. The U.S. Travel Association expects annual travel spending to rise by a modest 1% this year, fueled largely by domestic leisure travel, even as airfares have climbed alongside jet fuel costs as global supply constraints persist. While people may still want to get away, forecasts point to changes in timing and destination selection rather than a full retreat from travel—an approach that some industry groups describe as demand reshuffling.
Gas prices have been a visible driver. The latest figures cited by AP show the average price for a gallon of regular gas at $4.56 on Thursday, compared with $3.18 a year earlier, according to motor club AAA. The Institute on Taxation and Economic Policy estimated Americans would collectively spend an extra $3.5 billion on gasoline over the holiday weekend, underscoring how higher costs can ripple across the trip-planning process.
Other components of travel costs have also moved higher. The consumer price index report AP referenced showed airfares were up 20.7% in April from a year earlier, and prices for lodging increased 4.3%. It also reported that intracity transit such as buses and subways rose 5.6%, and that eating out was 3.6% pricier, contributing to an overall higher baseline for family vacations.
Industry outlooks still project travel demand at Memorial Day levels. AAA predicted that 45 million U.S. residents would travel at least 50 miles from home between Thursday and Monday, and the Transportation Security Administration said it expects to screen 18.3 million passengers from Thursday to next Wednesday. Bank of America said consumers are increasingly focused on value, with some adjusting destinations and timing rather than eliminating travel, and Mastercard similarly reported that consumers appear to be shifting their plans.
Some households are describing the experience less as a straightforward budget math problem and more as a planning challenge with multiple stressors. Beyond costs, the AP report said airlines worldwide have canceled flights and trimmed routes to save on fuel and operating costs, leaving passengers with fewer options. The conflict in the Middle East has also complicated travel for some routes, with rerouted flights into and out of Asia adding uncertainty for travelers considering trips abroad; U.S. government shutdowns have also left passengers with fresh memories of disruptions and longer security lines.
The travel calculations are showing up in polling and in the way families talk about their choices. A Quinnipiac University poll of registered U.S. voters, cited by AP, found that 48% have cut back on vacation spending, 54% reduced what they spend on dining out, and 36% curbed their driving. The report also described analysts’ characterization of travel spending as “K-shaped,” with higher-income households still going while lower-income families pull back or opt out entirely, and Bank of America said lower-income households were significantly more likely to report having no summer travel plans.
Even when a trip still happens, families are often downsizing and narrowing the scope of travel. Jim Wang, a personal finance blogger in Maryland, said his original plan to travel to Spain in August to see a full solar eclipse unraveled after he considered airfare and the logistics of connecting flights and a rental car. He said his family instead plans to go this summer to the Lake Tahoe area, stay at a relative’s cabin for free, and hike with a slower pace and limited cellphone service, with his wife’s parents and sister expected to join.
University research and consumer experts also point to a shift in what people are trying to preserve. Marta Soligo, a tourism sociologist at the University of Nevada, Las Vegas, said the key word is “unpredictability,” adding that “Tourists don’t like unpredictability.” Nancy McGehee, a Virginia Tech hospitality professor who studies consumer behavior, said people are increasingly focusing on “the why than the where,” describing “more quality over quantity” as travelers look for ways to keep vacations meaningful even when they cannot make them as grand.
Back in Rhode Island, Bernaba said she expects the nature of family travel to keep changing for a while. She said her mind has gone to “doing more nature-y things,” and that learning how to use the earth to enjoy themselves may cost less, with that change becoming part of how the family adapts as summer approaches.