Revenge Travel Hangover 2025: Why Travelers Are Scaling Back
The Revenge Travel Peak: 2022-2023
Revenge travel wasn't subtle. US outbound travelers rebounded to 80.7 million in 2022 (+64% vs 2021). European airports saw 250% increases in passenger volumes in H1 2022. Some travel companies recorded 50% growth in flight revenues.
January 2023 hit peak frenzy: 85% year-over-year increase and 140% vs 2021. Surveys showed 77% of travelers planned to spend the same or more than 2022, with 41% planning to spend MORE. U.S. outbound air travelers to overseas countries were up 8.9% vs Q2 2019—surpassing pre-pandemic levels.
The end came quietly. By October 2023, industry reports noted the end of "unabated revenge travel." Oxford Economics declared: "The tourism boost to Asia has passed its peak." Pent-up demand in Asia-Pacific peaked in H1 2023, then reversed.
The Debt Bill: $1.21 Trillion and Climbing
Credit cards fueled the boom. Now the bills are due.
Total Debt Explosion
- Q2 2025: $1.209 trillion total credit card balance
- Q3 2024: $1.16 trillion (+8.6% in one quarter)
- End of 2022: First time surpassing $1 trillion
- Growth 2022-2023: 17.3% increase in one year
Average Balances Soaring
- Q1 2025: $7,321 average card debt (+5.8% from $6,921 in Q1 2024)
- Q3 2024: $6,730 among those carrying debt (+3.5%)
- 2025: 60% of debtors carried balance for at least a year
Interest Rates at Record Highs
- Q3 2024 APR: 23.37% (highest ever recorded)
- 2022 fees and interest: $105 billion in interest + $25 billion in fees = $130 billion total
Delinquencies Hit 2008 Crisis Levels
Spending Trends: How Much Travelers Overspent
Metric | 2022 | 2023 | 2024 | 2025 | Total Change |
|---|---|---|---|---|---|
| Average Travel Budget | $4,000 | $4,532 | $5,300 | $10,244 | +156% vs 2022 |
| Credit Card Debt | $1.0T | $1.17T | $1.16T | $1.21T | +21% vs 2022 |
| Planning Summer Vacation | N/A | N/A | 53% | 46% | -7 points |
| International Visitors to US | N/A | N/A | 72.4M | 67.9M (proj) | -6.3% |
2022: The Overspending Peak
- 33.75% of Americans went over budget on vacation (2022)
- 11.38% paid significantly more than budgeted
- 44% willing to take on debt to "treat themselves" (creditcard.com survey)
Budget Inflation 2023-2025
- 2024 average budget: $5,300
- 2025 average budget: $10,244 (nearly double)
- Another survey: $5,915 average spending 2025 (31% increase from $4,532 in 2024)
- International trips: Average $9,922 in 2025 (up ~$1,000 from 2024, up $4,000 from 2022)
Note: These increases reflect inflation and higher costs, not necessarily increased splurging. But combined with credit card debt data, clear overspending occurred in 2022-2023.
The Pullback: 2025 Booking Declines
Hotel Bookings Dropping
- Q1 2025: U.S. hotel bookings dropped 8% vs Q1 2024 (HotelHub data)
- CoStar & Tourism Economics downgraded 2025 room revenue growth to 1.8% (from 2.6% forecast)
International Travel Declines
- June 2025: International visitor arrivals to US fell 6.6%
- 2025 projection: Inbound travel to decrease 6.3% from 72.4M (2024) to 67.9M (2025)
- First decline since 2020 (COVID onset year)
- 2025 travel to US: Projected to fall to 85% of 2019 levels
- International spending: $181B (2024) → $169B (2025 forecast), down $12.5B
Vacation Plans at Multi-Year Low
- 2024: 53% planning summer vacation
- 2025: 46% planning summer vacation (7-percentage-point drop = 13% decrease)
- 2025 "not sure": 23% (up from 18% in 2024)
Total US Travel Spending Barely Growing
The Shift: Trading Down, Not Cutting Out
Staycations Surge
- 54% of Americans planning staycations in 2025
- More searches for trips within 300 miles of home
- 39% traveling domestically instead of internationally to save money
- 66% planning trips within U.S. for summer travel
- Nearly 90% of holiday travelers choosing to drive vs fly
Micro-cations: Shorter, More Frequent Trips
- 2024: Average 2.3 summer trips planned
- 2025: Average 3.1 trips planned (more trips, shorter duration)
- 41% planning trips of 3 nights or fewer
- 43% taking shorter trips specifically to reduce spending
- 56% of solo travelers prefer weekend getaways vs long-haul trips
Budget Hotels & Cost-Cutting
- 33% staying at budget hotels to cut costs
- Cost became #1 factor: 52% in 2025 vs 48% in 2024 (destination dropped to 49% from 53%)
- 44% skipping vacations citing price (23% jump since 2022)
- 22% canceled/postponed trips due to finances
Who's Still Spending vs. Who's Scaling Back
Generational Divide
Gen Z & Millennials: Still Going (On Debt)
- Gen Z: 42% using debt for summer travel
- Millennials: 47% using debt for summer travel
- Compare: Gen X 31%, Boomers 22%
- Credit card increases: Gen Z +62%, Millennials +50% balances (March 2022-Feb 2024)
- Gen Z average personal debt: $94,101
- Social pressure: 24% of Gen Z felt pressured by friends to take unaffordable trips
Gen X & Boomers: Pulling Back
- Lower debt willingness for travel
- Boomers: Over 60% cite fair/reasonable price as top restaurant selection factor
- More likely to skip vacations due to cost
The BNPL (Buy Now, Pay Later) Explosion
- 2024 global market: $492.8 billion
- 2025: $560.1 billion (+13.7%)
- 2030 projection: $911.8 billion (10.2% CAGR)
- Current users: 360 million worldwide
- 2027 projection: 900 million users (+157%)
- Klarna 2024: $105 billion volume (+9.3% YoY)
- Affirm 2024: 46% YoY revenue growth to $2.32 billion
Reality: BNPL enables continued travel spending despite financial stress—kicking the debt can down the road rather than addressing affordability.
Airlines & Hotels: Industry Data
Airlines: Strong Load Factors, Lower Yields
- 2024 load factor: 83.5% (record for full-year traffic)
- 2025 projection: 84.0% (all-time high)
- But passenger yields down 4.0% vs 2024 due to competition and lower oil prices
- August 2025 airfares: Up 3.3% vs August 2024, up 12% vs August 2019
Hotels: Occupancy Short of 2019
- 2024 forecast: 63.6% occupancy (3.4 percentage points short of 2019)
- 2025 expected: 63.38% occupancy
- ADR 2024: $160.16 (+3% vs 2023)
- ADR 2025: $162.16 (new high but slower growth)
- August 2025 hotel rates: Down 3.7% vs August 2024
Economic Context: Inflation, Jobs, Recession Fears
Travel Price Inflation
- August 2025 vs August 2024: Travel prices flat (0% change)
- August 2025 vs August 2019: Travel costs up 12%
- Breakdown (Aug 2025 vs Aug 2024):
- Airfares: +3.3%
- Hotel rooms: -3.7%
- Car rentals: -4.8%
Job Market Cooling
- August 2025: 4.3% unemployment rate
- August 2025: Only 22,000 jobs added (below expectations)
- May-June 2025: Previous estimates revised down 258,000 jobs
- 2025 trend: Noticeable deterioration, mounting difficulty finding jobs
Consumer Confidence
- September 2025: Consumer confidence at lowest level since April 2025
- Expectations below 80 threshold (typically signals recession) since February 2025
- Service spending intentions: Decline across almost all categories in September 2025
- Travel services: Especially affected by declining buying intentions
The Paradox: Luxury Still Growing
While mass-market travel faces headwinds, luxury remains resilient:
- 2024 global luxury travel: $1,529 billion
- 2025 projection: $1,679 billion (continued growth)
- Luxury hotels and international premium air remain strong
- Wealth inequality effect: High-end travelers unaffected by inflation/debt
The divide: Budget and mid-market travelers scaling back, luxury segment maintaining momentum. Economic stress hits middle-income travelers hardest.
What This Means for 2025-2026
Expect Continued Pullback
- Bookings likely to remain flat or decline through 2025
- More substantial slowdown projected for 2026
- Micro-cations and staycations to dominate mid-market
- Budget accommodations gaining market share
Credit Card Debt Will Keep Growing
- Q2 2025 already hit $1.21T
- Delinquency rates unlikely to improve soon
- Defaults may accelerate if recession hits
- Interest rates at 23.37% compounding problems
Travel Industry Adjustments
- Airlines maintaining high load factors through capacity discipline
- Hotels offering more promotions, discounts
- Budget brands expanding to capture trading-down travelers
- BNPL partnerships to maintain bookings despite affordability issues
Silver Lining: Deals Are Back
Frequently Asked Questions
What was revenge travel and when did it peak?
Revenge travel peaked in 2022-early 2023 as pent-up pandemic demand exploded. US outbound travelers hit 80.7 million in 2022 (+64% vs 2021). January 2023 saw 85% year-over-year growth. By October 2023, industry reports noted the end of "unabated revenge travel." The tourism boost passed its peak by H1 2023.
How much credit card debt did Americans accumulate from travel?
Total US credit card debt reached $1.21 trillion in Q2 2025, up from $1.0 trillion at the end of 2022 (+21%). Average balance hit $7,321 in Q1 2025 (+5.8% from $6,921 in Q1 2024). In 2024 alone, Americans defaulted on $59 billion in credit card debt (34% jump from 2023). Delinquency rates reached 2008 financial crisis levels at 9.1%.
Are travel bookings actually declining in 2025?
Yes. Q1 2025 US hotel bookings dropped 8% vs Q1 2024. International visitor arrivals to the US fell 6.6% in June 2025. Total inbound travel projected to decrease 6.3% from 72.4M (2024) to 67.9M (2025)—the first decline since 2020. Summer vacation planning dropped from 53% (2024) to 46% (2025), a 7-percentage-point decrease.
Why are travelers cutting back now?
Post-pandemic debt is catching up. Credit card debt surpassed $1 trillion for the first time in 2022, with interest rates hitting 23.37% (highest ever). Delinquencies reached 2008 crisis levels. 44% skipping vacations cite price (23% jump since 2022). Cost became the #1 decision factor (52%) over destination (49%) in 2025. Economic uncertainty and inflation fatigue are driving the pullback.
What is replacing traditional vacations in 2025?
Staycations (54% of Americans planning them), micro-cations (41% taking ≤3 night trips), and domestic travel (66% traveling within US vs internationally). Nearly 90% choosing to drive vs fly. Average trip count increased to 3.1 trips vs 2.3 in 2024—more frequent but shorter trips. Budget hotels seeing 33% of travelers trading down from mid-range.