Miguel Olave and his family, who live in Derby, Kansas, have decided to skip their annual summer vacation this year. Usually, they travel to popular destinations like Disney World or New York, but due to rising costs and uncertainty, they are staying home.
Olave explained that the family’s grocery expenses have skyrocketed. “Typically by the 15th of every month, we’re hitting around $350 to $400 in grocery expenses. This month, we’re nearing $600,” he shared. This increase in everyday costs has made it hard for them to justify spending money on travel.
According to the Bureau of Labor Statistics, grocery prices have slightly decreased but are still 2 percent higher than last year. With concerns about job stability, Olave feels it’s wiser to save money rather than spend it on vacations.
He is not alone in this sentiment. Consumer confidence is at its lowest in 13 years, and many families are hesitating to travel. A recent survey found that over half of travel planners reported a drop in business, with economic uncertainty being a major factor. Southwest Airlines CEO Robert Jordan noted that consumers are delaying their travel plans.
Travel bookings have also taken a hit. Flighthub reported a 10 percent decline in bookings compared to last year, while Expedia noted stalled growth in the US market. In fact, airline ticket prices have dropped significantly due to lower demand.
Even those who still plan to travel are looking for ways to cut costs. A survey indicated that many travelers are opting for cheaper transportation and shorter trips.
The decline in travel isn’t limited to domestic travelers. International tourism to the US has also decreased, influenced by government rhetoric and immigration policies. Adam Sacks, president of Tourism Economics, pointed out that negative perceptions of the US have affected its appeal to foreign visitors. In March alone, international travel to the US dropped by 14 percent, with a significant decline from Canada.
Travel warnings from traditional allies like the UK and Germany have added to the hesitancy. Reports of travelers facing difficulties with US immigration have only heightened fears. One Canadian actress was detained for 12 days, and other travelers have shared similar concerns about being wrongly questioned or detained.
Looking ahead, experts predict a continued decline in international visitors. Oxford Economics forecasts a 9.4 percent drop in international travel to the US this year, a stark contrast to earlier predictions of growth.
As families like the Olaves choose to stay home, the travel industry faces a challenging road ahead. With rising costs and growing fears, many are rethinking their vacation plans, leading to emptier flights and quieter tourist spots across the country.