Takeaways for tourism from PwC’s 2025 Holiday Outlook

Even as US shoppers sign the primary notable 5% decline in general vacation spending since 2020, journey demand seems to be surprisingly resilient. PwC’s latest Holiday Outlook suggests journey and leisure will likely be “holding steady,” ticking up by about 1% 12 months over 12 months — a vivid spot in an in any other case tighter season.

“Travel and entertainment are holding steady, with modest 1% gains YoY.”

Who is travelling — and why it issues

Forty-four p.c of shoppers plan to journey across the holidays, basically unchanged from final 12 months’s 46%. Millennials and Gen Z lead intent (each at 55%), whereas Boomers path at 26% and Gen X sits close to 39%.

Among these not travelling, the stay-home impulse is robust and sensible: roughly half say they like to have a good time at house, and 43% cite value considerations (rising to 50% for Gen Z non-travellers). Expect a continued tilt towards visiting-friends-and-relatives (VFR): about 48% of these planning journeys say household and mates are the first motive.

Generational cash temper: divergent paths

The generational image is stark. Gen Z plans a 23% pullback in vacation spend after final 12 months’s 37% surge, whereas Boomers anticipate to spend 5% extra. Millennials are basically flat (down 1%) and Gen X edges up 2%. For journey sellers, that blend implies stronger conversion potential in older cohorts with extra buoyant budgets, and a necessity for sharper worth propositions for youthful travellers.

AI enters the itinerary

Discovery is altering quick. A hanging 76% of Millennials say they’re possible to make use of an AI agent for journey suggestions — a transparent sign that journey planning will likely be formed by conversational instruments that compress analysis, evaluate choices, and nudge towards reserving. Brands that aren’t but feeding clear content material, stock, and coverage information into AI-readable codecs danger invisibility on this new “assistant-first” funnel.

Value is the brand new luxurious

Consumers are buying and selling down in a number of classes, however journey budgets are proving sticky. With general vacation spend down 5% and present spend down 11%, households are prioritising experiences and togetherness over “things.” Positioning versatile fares, clear charges, and significant perks will resonate. Keep a watch on tariffs and value headlines: value nervousness correlates with decrease discretionary outlay elsewhere, even when journey holds up.

Operational timing: later Thanksgiving, tighter window

This 12 months’s late Thanksgiving (27 November) compresses the promotional calendar and will bunch bookings, particularly for shorter-haul VFR journeys. Ensure stock is properly surfaced early, cancellation guidelines are easy, and last-minute availability is correct throughout metasearch and AI surfaces alike. (PwC notes the retail calendar squeeze; the identical behavioural strain typically echoes in journey.)

What journey & hospitality ought to do now

• Win Millennials within the AI period. Publish structured content material that LLMs can parse: clear route maps, inclusions/exclusions, youngster insurance policies, resort charges, and loyalty phrases. Provide API entry the place attainable so assistants can quote and evaluate precisely.
• Merchandise “value clarity.” Bundle high-salience advantages (Wi-Fi, breakfast, late checkout) and highlight total-trip value. Gen Z’s pullback makes price-to-experience ratios decisive.
• Target Boomers and Gen X with confidence. These cohorts present steadier or rising spend; emphasise consolation, reliability, and seamless service — and make it straightforward to ebook multi-generational stays.
• Lean into VFR. Create “home for the holidays” packages close to residential hubs: versatile date adjustments, companion floor transport, and easy add-a-night extensions.
• Protect late demand. Expect a condensed reserving curve. Hold again a small quota for close-in stock, streamline cellular checkout, and hold cancellation insurance policies humane to unlock last-minute conversions.

Bottom line

The 2025 vacation season could also be leaner on the until, however journey stays emotionally and socially important — and that resilience exhibits within the information. Operators that meet the second with worth readability, AI-ready content material, and segment-savvy affords is not going to simply climate the season; they may win it.

About the survey: PwC surveyed 4,000 US shoppers from June 26 to July 9, 2025. Respondents have been balanced throughout gender, area and era — together with 1,000 every from Gen Z, Millennials, Gen X and Baby Boomers.

Read the full article at PwC