Family Trips: How High Costs Are Changing the Way Leisure Is Planned as families increasingly prioritize value and experiences over luxury. Over half of travelers are staying home due to high expenses, and many are redirecting travel funds to debt or savings. Baby Boomers are also contributing to this shift, opting for “SKI” trips (Spending the Kids’ Inheritance) to create lasting memories with family instead of leaving an inheritance.
In this article, you will learn:
- Over half of travelers are staying home due to high expenses, with some redirecting travel funds to debt or savings.
- Baby Boomers are increasingly funding family vacations, choosing “SKI” trips (Spending the Kids’ Inheritance) to prioritize shared experiences.
- Families are opting for shorter, more frequent getaways to maximize vacation time without overspending.
- Many families are driving instead of flying to cut transportation costs, offering more flexibility and potential savings on baggage fees.
- Domestic travel is gaining popularity as international trips become more expensive, with families seeking savings closer to home.
- Families are prioritizing experiences like nature-based activities, cultural immersion, and educational opportunities over luxury accommodations.
How are high costs changing family trip planning?
Rising prices are reshaping how families approach vacation planning. With tighter budgets, many are rethinking their approach to leisure travel and finding new ways to make their money go further.
To stretch their dollars, families are adopting several strategies:
- shorter, more frequent getaways,
- prioritizing experiences,
- selecting budget-conscious destinations.
To keep costs down, many are choosing economical lodging options, such as budget hotels or staying with friends and family, leading to a decline in pricey resort stays.
A notable shift is also happening among older generations. Many Baby Boomers are stepping in to help fund family vacations, choosing to invest in shared experiences rather than saving for inheritance. These so-called “SKI” trips – Spending the Kids’ Inheritance – reflect a growing desire to create lasting memories with children and grandchildren now, rather than leaving money behind later. This trend highlights the increasing value placed on shared experiences and family bonding.
For over half of travelers, high expenses are the primary reason they’re staying home. Some are redirecting their travel funds toward paying off debt or setting aside money for future adventures, indicating a shift in financial priorities.
To adapt, families are changing how they travel in a variety of ways:
- taking more frequent but shorter trips to maximize their vacation time without overspending,
- driving instead of flying to cut transportation costs, allowing for more flexibility and potential savings on baggage fees,
- staying with relatives or friends to avoid hotel bills, fostering closer relationships and creating a more communal travel experience,
- swapping one large vacation for several smaller ones to explore different destinations without breaking the bank,
- choosing more affordable places to stay, such as vacation rentals or budget-friendly hotels, to allocate more funds to activities and experiences,
- hunting for better deals on airfare by being flexible with travel dates and utilizing flight comparison websites.
As flight and hotel prices continue to climb, travelers are getting creative, avoiding peak seasons and seeking out destinations that offer more value for their money. For example, families might consider visiting national parks during the shoulder season or exploring lesser-known destinations that offer similar attractions at a lower cost.
These evolving habits highlight a clear trend: families still cherish travel and the memories it brings, but they’re becoming more resourceful in how they make it happen. They are prioritizing experiences, seeking value, and adapting their travel plans to accommodate rising costs.
Why are families re-evaluating travel budgets and destinations?
As financial pressures mount and the economy continues to shift, families are taking a more thoughtful approach to planning their vacations. With travel becoming increasingly frequent, there’s a noticeable shift toward keeping costs in check. In response, the travel industry is adapting, placing a stronger focus on offering affordable options and better value for money.
Several major factors are influencing this change:
- economic uncertainty, with a weaker dollar and broader economic instability prompting many households to be more mindful of their spending,
- rising travel costs, including higher hotel rates and airfare, leading families to seek deals and utilize travel rewards programs,
- financial assistance from relatives, where older relatives are stepping in to help cover the cost of family trips, easing the financial strain for younger generations,
- prioritizing value and experiences, with travelers trimming non-essential expenses and focusing on creating meaningful experiences rather than indulging in luxury amenities.
This evolving mindset reflects a broader trend toward more intentional, value-driven travel. Families are becoming more selective, carefully considering whether each part of the trip is truly worth the expense. They are seeking authentic experiences and prioritizing quality time together over extravagant vacations.
Which types of family trips are becoming more popular due to cost considerations?
More and more families are turning to affordable travel options that still deliver memorable and enriching experiences. As people look for ways to cut costs without sacrificing quality time together, several types of trips have gained popularity.
- Staycations: Instead of venturing far, many families are discovering the joys of exploring their own cities or nearby towns. Visiting local landmarks, parks, or museums can reveal hidden treasures, support small businesses, and offer a relaxing break without the hassle or expense of long-distance travel. For example, a family in Chicago might explore Millennium Park or visit the Museum of Science and Industry.
- Camping and outdoor getaways: Spending time in nature is not only budget-friendly but also a great way to unplug and reconnect. Whether it’s pitching a tent in a national park or enjoying a cabin in the woods, families can hike, fish, and enjoy the outdoors together. Many parks offer low-cost accommodations, making this a healthy and bonding experience. Consider a camping trip to Yosemite National Park or a cabin stay in the Smoky Mountains.
- Road trips: Hitting the road gives families the freedom to travel at their own pace and stick to a budget. With the flexibility to choose routes and stops, road trips can be customized to suit different interests and timeframes. Plus, they offer the chance to explore multiple destinations in one journey. A classic example is a Pacific Coast Highway road trip, allowing stops at various beaches and attractions.
- Budget-friendly all-inclusive resorts: Some resorts offer packages that include lodging, meals, and entertainment for one set price, making it easier to plan and control spending. These options are especially appealing for families who want a stress-free vacation without constantly worrying about extra costs. Look for resorts in Mexico or the Caribbean that cater specifically to families.
- Vacation rentals: Booking a home or apartment through services like Airbnb or VRBO can be more economical than multiple hotel rooms, especially for larger groups. Having access to a kitchen also helps cut down on dining expenses, giving families more flexibility and comfort during their stay. Renting a condo in Orlando, Florida, near Disney World can be significantly cheaper than staying in a Disney resort.
- Traveling during the off-season: Planning trips during less busy times of the year can lead to significant savings on flights and accommodations. These periods often come with the added bonus of fewer crowds, allowing for a more peaceful and enjoyable experience. Consider visiting Europe in the spring or fall for lower prices and fewer tourists.
By choosing these types of travel, families can explore new places, prioritize well-being, and even find moments of personal growth – all while keeping their finances in check.
Is multigenerational travel still trending, and how does domestic travel compare to international?
Multigenerational travel remains relevant, though it’s not currently the dominant trend in leisure travel. Rising costs are driving a shift toward domestic destinations, as families find that exploring closer to home offers significant savings.
As international trips become more expensive, domestic travel is gaining popularity. This trend is particularly appealing to budget-conscious travelers and families looking to reduce expenses. Lower-income individuals are increasingly opting for nearby getaways to manage their travel budgets effectively.
While visits to the U.S. from abroad have decreased, the travel industry is still projected to grow, with domestic tourism as a key driver. This growth is supported by several factors:
- reduced travel time, allowing for shorter, more frequent trips,
- lower transportation costs, especially for families,
- increased opportunities to support local economies.
What economic concerns are influencing family vacation plans, and how is the travel industry responding?
Rising inflation, increasing credit card debt, and shifts in the Gross Domestic Product (GDP) are influencing how families approach vacation planning. With tighter budgets and economic uncertainty, many are reconsidering their travel habits, opting for more thoughtful and cost-effective options. In turn, the travel industry is responding by enhancing digital booking platforms, tailoring experiences to individual preferences, and embracing sustainable practices to attract eco-conscious travelers. These efforts aim to maintain strong interest in travel, even as financial pressures mount.
Families are seeking personal and immersive experiences that offer a deeper connection to local culture. Instead of typical tourist attractions, they’re exploring activities like food-focused tours, interactive cultural workshops, and outdoor excursions. These experiences deliver memorable moments and often offer better value. Travel providers are responding by focusing on customization and tech improvements to meet these changing tastes. The demand for authentic, meaningful travel is expected to continue growing.
What in-destination experiences are families now prioritizing?
More and more families are opting for meaningful, personalized adventures instead of high-end hotels, prioritizing experiences over luxury accommodations. They’re drawn to budget-friendly getaways that offer interactive experiences and create lasting memories. When money is tight, they tend to skip add-ons like guided tours, paid attractions, or intimate group workshops during their travels, seeking free or low-cost alternatives.
Families are now prioritizing experiences that foster connection and learning, such as:
- Nature-based activities: Hiking, camping, and exploring national parks offer affordable ways to bond and appreciate the outdoors,
- Cultural immersion: Visiting local markets, attending free festivals, and trying regional cuisine provide authentic cultural experiences without breaking the bank,
- Educational opportunities: Museums with free admission days, historical sites, and science centers offer enriching experiences for children and adults alike.
These in-destination experiences allow families to create lasting memories while staying within their budget, reflecting a shift towards valuing quality time and shared adventures over extravagant spending.
Are rising travel costs specifically impacting American family trip plans?
Yes, the rising cost of travel is significantly shaping how American families plan their vacations. Ongoing economic uncertainty and shifts in consumer behavior are putting pressure on the leisure travel sector, leading families to carefully consider their budgets and travel choices. Many are opting for destinations within driving distance to reduce expenses on flights and accommodations.
To make trips more affordable, families are rethinking their travel habits in several ways:
- shortening vacations: instead of week-long getaways, families are opting for long weekend trips to minimize accommodation and activity costs,
- driving instead of flying: the cost of airfare for a family can be prohibitive, making road trips a more budget-friendly alternative that also allows for greater flexibility in terms of destinations and packing,
- staying with friends or family: utilizing free lodging options like staying with relatives or friends helps families avoid expensive hotel stays,
- choosing budget-friendly lodging: when staying with friends or family isn’t an option, families are increasingly turning to vacation rentals, budget hotels, or camping to save on accommodation costs,
- scaling back on paid activities: families are prioritizing free or low-cost activities such as hiking, visiting parks, and exploring local attractions over expensive theme parks or guided tours.
This trend is particularly evident among lower-income households, who are more likely to stay closer to home. For those not planning to travel, over half cite high costs as the main deterrent, while about a third attribute it to reduced disposable income due to inflation.
Consequently, fewer Americans are traveling abroad, especially to Europe. Domestic travel is becoming more popular, with families choosing to explore destinations within the United States to save on airfare and international travel expenses.
