The American Dream may be facing challenges, yet the allure of the Euro summer dream remains vibrant for many. Jimin Shim, a millennial copywriter from Denver, expresses her concerns about the economy, citing stock market volatility and a tough job market as significant issues. Despite these worries, Shim is set to vacation in Portugal later this month, treating her mother to this special trip. "Traveling is very important to me. I try to do at least one international trip a year and a couple of domestic trips," she shared with Business Insider. Understanding that travel is a priority, Shim diligently budgets and saves throughout the year to make her trips happen.
While there has been a slight softening in leisure travel demand this year, various data and surveys indicate that Shim is not alone. Many Americans are weighing their international travel plans against economic concerns, yet they are still deciding to book those trips. An analysis by Cirium, an aviation analytics company, revealed that summer bookings from the US to Europe fell nearly 10% from January to May compared to the previous year. Conversely, a summer travel survey from Deloitte, released in May, reported that more Americans were traveling internationally this summer than in 2024, with a majority heading to Europe. Additionally, a data analysis by Allianz Partners projected a 10% increase in summer travel from the US to Europe in 2025.
The economy is not the sole factor influencing Americans' travel decisions this summer. The weakening US dollar has reduced purchasing power abroad, prompting some travelers to reconsider their plans. Additionally, concerns about safety and feelings of not being welcomed due to the current administration's foreign policy have surfaced. Americans are also delaying booking their trips, complicating the travel landscape. Nevertheless, many still prioritize travel, viewing it as essential rather than optional. Amir Eylon, president and CEO of Longwoods International, noted, "I still believe a majority of American travelers who were planning to go abroad are still going to go abroad."
Despite indications of a potential slowdown in travel, Eylon believes it is not a game-changing shift. His firm’s consumer sentiment survey indicated that the percentage of American travelers highly likely to take an international trip in the next 12 months dropped from 25% in January to 19% in May. Eylon remarked that travelers seem to be in a "wait and see" mode, often booking closer to their departure dates in search of the best deals. While there may be a decline in American visitors to Europe this year, he anticipates that those canceling plans will be in the minority. Many American travelers perceive travel as a necessity, or even a right.
Meredith Pierce, a travel content creator based in Atlanta, echoes this sentiment, stating that many millennials and Gen Zers view travel, particularly to Europe, as a fundamental aspect of life. "Everyone loves the idea of sipping an Aperol spritz and looking at the Mediterranean," Pierce remarked, highlighting the escapism travel offers amidst daily stresses related to politics and the economy. This sense of escapism may also contribute to more affordable travel options this summer, as a decline in leisure travel has led to reduced airfare prices, enticing hesitant travelers to take the leap.
With the economic climate shifting, some travelers are exploring budget-friendly destinations like Albania or Poland. These locations provide stunning scenery at lower costs compared to traditional hotspots like Italy or Paris. Deloitte's summer travel survey noted that many Americans had their summer trips partially or fully booked by April, despite rising concerns over tariffs and the economy. Interestingly, while financial well-being has declined year-over-year, more Americans are planning leisure vacations this summer compared to 2024.
Deloitte's survey found that travelers are adopting frugal spending habits, limiting in-destination expenses and opting for budget-friendly lodging and flights. Still, many prioritize bucket list trips and special international travel experiences. Notably, 42% of air travelers reported flying internationally on their longest summer trip, a rise from 38% in 2024, with many also increasing their travel budgets compared to the previous year.
For Jimin Shim, her trip to Portugal holds significant personal meaning. After her grandfather's passing last year, the vacation represents an opportunity to bond with her mother, who has never visited Europe before. "I think traveling and spending time with family during uncertain times is essential for mental and emotional health," Shim emphasized. This perspective resonates with many travelers who see value in creating lasting memories, even amidst economic challenges.
