As the holiday travel season approaches, a growing number of American families are choosing to stay home instead of taking a vacation. New data suggests that for many households, travel has become an unaffordable luxury amid ongoing financial pressures.

Travel industry professionals say consumers are paying closer attention to costs.

“We’re seeing people being a lot more cost conscious and paying a lot more attention to the price,” said Matthew Kondrup of Matty K Travel Group. “We’re also seeing people maybe not booking as many vacations per year.”

According to the Federal Reserve’s report on American family finances, 39% of families reported spending nothing on vacations during a 12-month period. Those most likely to forgo travel include younger households, lower-income families and individuals dealing with health-related challenges.

Economist Martin Cantor says rising prices for basic necessities are forcing many Americans to make difficult financial decisions.

“People are deciding, ‘I can’t afford a nice vacation,’” Cantor said.

He described the situation as a form of “economic triage,” where families prioritize essential expenses such as housing, food and other necessities before considering discretionary spending like travel.

“I’ve got to pay for food, I’ve got to pay rent, I’ve got to pay the necessities in life,” Cantor said. “They run out of money and so that’s why they’re saying, ‘I’m not going to go on vacation.’”

Financial strain is also showing up in other areas. Federal Reserve data indicates that 20% of American families were behind on loan payments in 2025, underscoring the challenges many households continue to face.