Despite rising airfares and travel costs, many Americans are cutting back on everyday expenses and picking up extra work to keep their vacation plans on track.
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Katie Nguyen and her fiancé are in the midst of wedding planning, but instead of having a “big, extravagant wedding,” they want to spend their hard-earned money traveling.
That’s because he lives in California and loves traveling, especially gourmet food. She takes small trips once a month and tries to go abroad at least twice a year. This year, Nguyen plans to visit San Diego, New York, Hawaii, and Vancouver, Canada. Her wish list includes Costa Rica and Vietnam.
As travel costs continue to rise, Nguyen is prioritizing travel in her budget and cutting back on other expenses. She recently debated a monthly membership to a fitness studio, but decided she could use weights at home and run outside to save a few hundred dollars a month. A communications expert, she also pays attention to “frivolous purchases,” like how long it takes to buy a new shower curtain for the guest bathroom.
“I just wonder, does it make sense to spend that money there and try to identify the things that are the most cost-effective and that really have value and impact on our lives,” Nguyen told USA TODAY. “I think it’s about how we want to allocate our funds as prices continue to rise.”
A new LendingTree survey of 2,000 Americans found that 75% of respondents say high gas and airfare prices are impacting their travel plans, and 84% are concerned about “financing their ideal trip.” Despite this, 40% are still planning to travel this year and are simply looking for other ways to make their trip economically viable.
This means prioritizing travel within your budget, even if it means changing plans or cutting back on other expenses. “I think at the end of the day, it’s also about understanding what your priorities are,” Nguyen added.
Take a look at how Americans are affording to travel this year.
Where travelers are cutting costs
In a May 2026 survey commissioned by PayPal in partnership with Edelman Data and Intelligence, nearly 78% of 2,001 American adults said they would still travel in 2026, even if prices were higher, and 66% said they would make a “sacrifice” to take their dream trip.
“Consumers increasingly view travel as an investment in experiences, well-being and connection,” Amy Bonitativas, PayPal’s senior vice president and chief communications and corporate affairs officer, told USA TODAY. “Instagram and TikTok are accelerating that change by putting aspirational destinations right at people’s doorsteps, and PayPal is making those experiences a reality by helping consumers pay instantly or over time through flexible payment options like buy now, pay later.”
To make room for bucket list trips, Americans are willing to cut back on other expenses. The survey found that 40% would eat out less, 36% would stop going out on nights out with friends, 35% would stop shopping, 31% would stop using data apps, and 30% would stop going to the gym.
“What’s interesting is that consumers aren’t necessarily spending more, they’re finding smarter ways to make travel work,” Bonitativas continued. “Many people are making small trade-offs in their daily spending, like limiting the number of times they eat out or shopping less, in order to experience that trip they saw on their Instagram feed.”
Some people just budget more carefully. They are starting side jobs to increase their travel funds. A PayPal study found that one in three Gen Z adults are taking on more jobs to fund their travels.
Although travel planning now requires more research and flexibility, Nguyen continues to keep travel at the forefront of her annual budget. “It’s all kind of a balancing act,” she said.
