Bank of America just released its 2025 Summer Travel & Entertainment Outlook—and it’s packed with insights for STR demand heading into peak travel season.
Unlike most reports, this one combines real credit card spending data with a national survey of 2,000+ Americans, giving us a clear look at how travelers are planning their summer vacations.
American Road Trip Revival
The top destination for U.S. travelers this summer? Right here in the United States.
Roughly 70% plan to stay domestic, a 3% increase from last year.
Interestingly, consumer credit card spending on airfare dropped by 3% year-over-year through April. Bank of America noted the demand started cooling in February – likely tied to market volatility, tariff talk, and federal job cuts.
But with less people flying, the highways are heating up. This summer, 63% of travelers say they’d rather drive than fly, whether in their own car or a rental. That’s an 18% edge over air travel.
And where are they going? Not the usual suspects. 92% of respondents say they are open to “destination dupes,” choosing lesser-known, budget-friendly alternatives.
Millennials lead this trend, with 62% saying they prefer budget-friendly alternatives over the big-name, big-price locations. That’s the highest of any generation.
"Experiences" are Driving Travel Decisions
American travelers aren't just picking road trips to save money. Turns out they believe it will lead to a better overall experience:
- 41% say they enjoy the road trip experience itself
- 40% say say their choosing to drive instead of fly for the opportunity to explore destinations on their own terms
This shift is especially strong among Gen Z and Millennials, who are actively skipping the tourist traps for nature escapes, wellness retreats, and under-the-radar gems.
Here’s what travelers are saying they really want:
- Relaxed, low-stress vacations: 53%
- Authentic, local experiences: 49%
- Hidden gems off the beaten path: 48%
- An escape from crowds: 48%
- To skip the tourist traps: 38%
Income Still Shapes Travel Choices
Digging deeper into income demographics, Bank of America’s data shows significant differences based on income:
- Over 60% of lower- and middle-income households are choosing road trips over flights.
- In contrast, over 60% of high-income travelers still plan to fly.
What This Means for Hosts
For hosts, it’s worth planning for a shift in where your guests are coming from. The overwhelming majority of U.S. bookings are domestic:
- Airbnb reports that international inbound travel accounts for only 2–3% of total U.S. stays.
- The Vrbo (Expedia) Q1 2025 update echoed the same trend, with two-thirds of all bookings coming from U.S. customers.
If you’re targeting budget-conscious guests (lower- to mid-income), it may be time to adjust your messaging. Focusing more on regional visitors within driving distance – people looking for a quick, affordable escape should lead to more bookings based on this data.
On the other hand, luxury listings catering to higher-income guests are less likely to feel a shift, as those travelers continue to book flights and plan destination stays.
Across the board, though, one thing is becoming increasingly clear: guests are booking based on experiences. No matter your target demographic, your marketing should lean hard into what your location has to offer. Highlight hidden gems, local experiences, and anything that sets your stay apart from the standard listing. That’s what’s moving the needle.
