Study Finds 65% of Americans Think Any Travel is a Luxury in 2024

Americans love to travel. Whether exploring within our borders or going abroad to sample different cultures and experiences, we are a nation of wanderlust. As influencers document truly luxurious travel experiences around the globe, we want to know what Americans consider luxury travel—and whether the cost of living is making any travel at all an indulgence in 2024.

We surveyed more than 900 Americans about how much they travel, where and how they splurge, and what they consider luxury in 2024. 

With the post-pandemic “revenge travel” boom, many Americans took planes, trains, and automobiles to explore the world after staying home for public safety. As the cost of living continues to raise prices for daily basics, how are Americans adjusting their travel budgets? 

The current cost of living is pushing Americans to redefine luxury: 65% think any travel will be a luxury in 2024. That won’t stop them, though — 36% say they prioritize experiences over financial stability. 

For the 37% who are cutting back on jet setting, those hardest hit are unsurprisingly in the lowest household income brackets, with more than half traveling less in 2024. Then again, even the richest among us, those who make more than $200,000 a year, are still cutting back: 1 in 4 are traveling less in 2024. 

The overwhelming cause of this is the cost of travel; 88% blame cost for their decrease in travel. Nearly half (44%) aren’t traveling in 2024, and 13% canceled a trip they already booked due to cost. Another third have postponed their trips for at least six months. 

Those finding ways to travel more are cutting corners on their trips: 23% say they lowered their travel budget per trip to make it work.

While 70% of Americans are planning a vacation sometime in the rest of 2024, not everyone can afford it: 17% said they can’t afford it but are planning a vacation anyway. Not only that, but 15% are taking on debt to the tune of an average of $2,300.

Some are mitigating going in the red by saving in advance, with 37% saving 2 to 6 months before their vacation. Others, about 18%, are using credit card points toward their flight. 

About half are planning to splurge on their vacation, with a nonstop flight being the top transit splurge. Most are springing for a hotel room as the top amenity splurge. 

If any kind of travel is a luxury for most Americans, how else are they changing the definition of luxury travel? More than half (57%) believe luxury travel now costs more than it used to, and 20% think once-standard travel amenities – carry-on luggage, a private room, etc. – are now considered luxury. 

Americans in 2024 prioritize their experiences over everything else, with 54% spending most of their travel money on experiences, 37% on lodging, and 9% prioritizing transit as their most significant expense. In fact, 81% would fly on a budget airline if it meant they could stay in a nicer hotel, and only 17% would sleep in a hostel to afford first-class airfare: clearly, the goal is having a pleasant stay, not necessarily getting there in style. 

What do Americans consider luxury travel to be in 2024? We divided items into three categories: transportation, lodging, and experiences. Top transportation luxuries in 2024 include first-class airfare, private transit to/from the airport, a nonstop flight, flying on a non-budget airline, and renting a car. 

For lodging, Americans consider a suite cabin on a cruise to be a luxury, followed by a four-star hotel, an ocean view room, renting an Airbnb home, and any kind of hotel room. Nearly 1 in 10 consider a private room in a hostel to be luxury! 

As for experiences, many feel a private tour is a luxury, followed by a trip to the spa, using an airline lounge, going to a concert, shopping, and eating at restaurants. 

“Travel may be a luxury for a large percentage of Americans, but clearly it’s a category that many are eager to splurge on. And for a good reason: people work very hard for their money and enjoying it is essential,” said CardRates Finance Expert Erica Sandberg. “If you are among them, make room in your budget for the expense or add to your income with side work and save assertively for the trip of your dreams.”

“As you do, prepare your credit cards. A great travel card will get you far,” Sandberg continued. “If you open one in advance, you can often score a high welcome bonus that puts you ahead of the game. You might also get free bag check at the airport, and a whole host of other conveniences that can make travel not just more enjoyable but also less expensive.”

A travel credit card is one way to pay for all these luxuries. Travel cards typically have rewards points that can be redeemed as airline miles or used to book travel at a discount. Nearly half (43%) of Americans have a travel card, but are they worth it? 83% think so. More than 1 in 3 have even paid for an entire vacation using points in the last five years, and 59% spend on their travel cards specifically to earn those points. 

Travel is a fundamental part of the American lifestyle; lately, it has come at quite a cost. That doesn’t mean it’s impossible, though—it just means that the experiences must be worth it. 

In July 2024, we surveyed 905 Americans nationwide on their opinions on travel, luxury travel, and the cost of living. Of those surveyed, 49% were women, 49% were men, and their ages ranged from 18 to 75, with an average age of 42.