According to PwC’s 2025 Holiday Outlook survey, consumers expect their seasonal spending to decline 5 percent on average from 2024—the first notable drop since 2020. More broadly, 84 percent of consumers expect to cut back on their spending over the next six months. Survey respondents cited rising prices, new tariffs and the higher cost of living as key reasons.
PwC surveyed 4,000 US consumers from June 26 to July 9. Respondents were balanced across gender, region and generation, including 1,000 each from Gen Z, Millennials, Gen X and Baby Boomers.
Travel Plans
When it comes to travel, 56 percent of respondents said they either are not planning to travel for the holidays or don’t know if they are yet. And while overall holiday spending is poised to decline, travel plans seem to be largely on par with last year at 54 percent.
The following percent of each generation is either not planning to travel or doesn’t know yet:
- Gen Z: 45 percent
- Millennials: 45 percent
- Gen X: 61 percent
- Baby Boomers: 75 percent
Of those not planning to travel in 2025, about half (49 percent) said they prefer to celebrate at home and 43 percent cite cost concerns. Cost concerns rise to 50 percent for Gen Z respondents who say they are not traveling.
Meanwhile, 44 percent of respondents said that they are planning to travel around the holidays, similar to last year (46 percent). The following percent of each generation is planning to travel:
- Gen Z: 55 percent (down from 61 percent in 2024)
- Millennials: 55 percent (similar to 54 percent in 2024)
- Gen X: 39 percent (similar to 40 percent in 2024)
- Baby Boomers: 26 percent (down slightly from 29 percent in 2024)
About half (48 percent) of those planning to travel in 2025 say they are planning to visit family and friends.
Generations and Nuances
“When I first looked at the travel numbers, I was sort of surprised that they weren't dramatically different from the prior year,” Jonathan Kletzel, principal, transportation and logistics leader at PwC U.S. told Hotel Management. While the overall outlook suggests that consumers are pulling back on spending over the holiday season, “travel is holding steady,” he said.
At the same time, Kletzel acknowledged “generational nuances” around Gen Z and Baby Boomers pulling back on their travel plans. “The hypothesis is that the younger generation either hasn't been in the workforce very long, or is feeling some anxiety around, potentially, what's happening with AI and entry-level work,” Kletzel said. Many boomers, meanwhile, are leaving the workforce and are on fixed incomes. “They're probably looking at potential economic indicators that might be reducing the size of their retirement portfolio. So they're probably just being cautious from that perspective.”
The middle two generations, meanwhile, are still in the workforce, and for now, “wages are holding or holding steady or growing,” Kletzel said. “So I think they're still feeling pretty good about spending money—or at least shifting their spend to travel.”
Kletzel also acknowledged the 48 percent of respondents who said they would travel to visit family and friends, and noted that these travelers may save money by staying with those family members and friends rather than in hotels.
To encourage travelers to stay in hotels over the holidays, Kletzel said that hoteliers should pay attention to available data and trends about booking patterns. “I'm not going to say [hoteliers should] start discounting,” he said, but encouraged hoteliers to “get ahead” with promotions and marketing to their target demographics sooner rather than later.
“The big message is people still want to move,” Kletzel said. “They still want to travel. They want to go see people—to the extent that they can afford it. They're going to travel this holiday season, and they may travel differently, they may look for deals, but they're not staying home just because they can't afford it.” Moreover, he said, when people spend money on goods and services, “they continue to choose travel as one of the top areas to spend on, above the others.” To that end, he advised hoteliers to “invest in unique experiences” that can keep their customers coming back. “This trend isn't going away.”