Amid economic pressures and budget constraints, Americans' confidence that they will take a summer vacation is at an all-time high, according to Allianz Partners USA's annual Vacation Confidence Index*. This year, six in ten (63%) Americans are confident they will take a summer vacation.  

Record highs in confidence are matched by record highs in vacation spend with Americans projected to spend $226.6 billion on summer vacations this year. The travel insurance and assistance provider found this year's anticipated spend is up 2.26% from 2024 - signaling a form of vacation resilience where Americans are prioritizing time away.

This year's spending record continues a six-year climb, with annual estimates more than doubling since 2019's $101.7 billion – indicating a post-pandemic shift in travel behavior. The upward trend in average anticipated spending per household remains robust. In 2025, this amount is expected to reach $2,867, marking a modest rise from $2,843 in 2024. 

"Despite increased pressure on wallets and ongoing travel cost inflation, we are still seeing Americans prioritize vacations this year," says Emily Hartman, General Manager at Allianz Partners USA. "The ongoing increase in spending signals that Americans view travel as a primary goal when setting up budgets and financial plans. As travelers plan their next vacation, one item that's important not to forget is travel insurance. After months, maybe even years of planning, it makes sense to have a safety net to protect your investment."

2025 Key Trends

The 2025 Vacation Confidence Index highlighted the following emerging behaviors from U.S. travelers:

• Gen Z and Millennials are leading summer travel: Younger Americans (under the age of 35) are 70% confident they will take a summer vacation this year. These younger groups are also significantly more likely to have vacationed in the last 3 months, especially those aged 18-34 (29%), as are those with kids living at home (31%).

• "Micro-cations" are back: Americans are moving away from longer trips and increasingly likely to take one- or two-night trips (31%, +3). As a result, the average number of nights per trip is decreasing, heading back towards 4 nights.

• Travelers are splurging on their shorter trips: Travelers are looking to make the most of their "micro-cations" as the amount spent on one- and two-night trips has grown significantly this year. The average spend on a one-night trip jumped from $594 in 2024 to $700 in 2025. Based on average spend analysis, one-night splurges are the costliest while the best value is found at the 1-week mark.

• "Bleisure" is trending: Significantly more Americans are adding leisure time to a business trip or life event (or vice versa) compared to last year (33%, +9). During leisure travel, more Americans are investing in luxury travel experiences (31%, +4), with Gen Z and Millennials most likely to invest in luxury experiences.

• Affordability plays key role in budget decisions: Even as spending reaches all-time highs, an increasing number of Americans who lack the confidence to take a vacation say its due to financial constraints. Nearly 70% stating their lack of confidence is because they don't want to or can't afford the expense, a significant increase from 62% in 2024.

• Ticketed events continue to drive travel: As we have seen with major concert series, like Taylor Swift's Eras tour, Americans are traveling both domestically and internationally to attend events (29%). Over half (63%) of travelers are expected to attend at least one ticketed concert or event this year, and the proportion of individuals attending three or more concerts, festivals or events has risen by five points this year.