2025 Summer Travel Report
Many Americans have summer travel plans in 2025, but some of last year’s travelers are still in debt from their summer fun, according to an annual NerdWallet survey.
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Summer is coming, and millions of Americans have plans to get out of town in the coming months. More than 2 in 5 Americans (44%) plan to take a vacation in summer 2025 that requires a flight or hotel stay, according to NerdWallet’s annual summer travel survey. These travelers anticipate spending $3,861, on average, for trip expenses. That’s over 117 million Americans, spending an estimated total of more than $452 billion on flights and hotel stays this summer.
The survey, commissioned by NerdWallet and conducted online by The Harris Poll, asked over 2,000 Americans about their summer travel plans. We then asked summer travelers — defined as Americans who plan to take a vacation that requires a flight or hotel stay between June and August 2025 — how they’re saving money on their trips and what they’re willing to splurge on.
Key findings
Most summer travelers are using credit cards to pay for trip expenses, but some of last year’s travelers are still in credit card debt. Nearly 9 in 10 summer travelers (85%) plan to use a credit card to cover some travel expenses. But 30% of 2024 summer travelers who used credit cards to pay for related expenses still haven’t paid them off.
A majority of summer travelers are taking steps to save. Most summer travelers (91%) say they’ll take action to save money on their travel expenses, including choosing a hotel based on price instead of amenities (40%), and using credit card points/miles to cover expenses (39%).
Plenty of Americans are getting out of town this summer, even if they’re not flying or staying in hotels. A majority of Americans (87%) say they’ll travel at least one night away from home this summer, with nearly half (47%) visiting friends or family, and 39% taking a trip with their family members.
“Americans are determined to travel this summer, but they’re getting creative to make it affordable,” says Sally French, a NerdWallet travel expert and spokesperson. “Think road trips, credit card points and choosing budget-friendly stays over fancy resorts. Some travelers are still paying off debt from last year, serving as a cautionary tale about the true price of a vacation."
Most travelers will pay with credit cards
Most 2025 summer travelers (85%) say they’ll use credit cards to cover some of their travel expenses. Of them, three-quarters (75%) say they’ll pay off all the expenses with the first billing statement, which means they shouldn’t have to pay any interest charges. But the remaining quarter (25%) say they won’t pay off the expenses in full within the first billing period, so they could end up incurring interest. And if last year’s summer travelers are any indication, they could be paying interest into next year.
Of Americans who put 2024 summer travel expenses on a credit card, 30% still haven’t paid off their balances. This is especially high for the youngest adults — 45% of 2024 Gen Z (ages 18-28) summer travelers who paid with credit cards still have debt from last year’s summer travel, compared to 26% of their older counterparts (ages 29-79).
As of November 2024, the average credit card interest rate (for cards that assess interest) is 22.8%, according to the Federal Reserve Bank of St. Louis. That means that over the course of a year, a cardholder carrying a balance would incur $228 in interest for every $1,000 in credit card debt they have.
Although credit cards are the most popular payment method for 2025 summer travel, many will use cash on hand (64%), savings (49%) and even buy now, pay later services (18%).
Like any form of debt, buy now, pay later loans can be a slippery slope. A recent report from the Consumer Finance Protection Bureau found that 63% of BNPL borrowers originated multiple loans simultaneously at some point during 2022. While some consumers may take out these loans strategically, it’s important for BNPL users to stay on top of payments and make sure they aren’t borrowing more than they can afford to pay back. Small purchases can add up quickly, resulting in monthly payments the borrower can’t reasonably keep up with, or even fees in the case of missed payments. The same goes for credit cards.
Pay down last year’s debt, avoid debt on this year’s summer travel
Interest charges from carrying credit card debt can significantly increase your summer vacation expenses. This is particularly true if you’re still in debt from last year when planning this year’s trip. Before booking anything, make a plan to pay off last year’s credit card debt and consider setting limits on future spending.
“A solid chunk of Americans are still paying off last year’s vacations, which likely means paying interest,” French says. “Those extra interest payments can negate any value of rewards earned on a card. If you’re putting your summer vacation on plastic, make sure you’ve got a game plan to pay off your card before your next trip rolls around.”
Summer travelers are taking steps to save, but willing to splurge sometimes
An overwhelming majority of 2025 summer travelers (91%) say they’re taking action to save on travel expenses. Some of the top ways they plan to do this are choosing a hotel based on price instead of amenities (40%) and using credit card points to cover expenses (39%).
Still, plenty of summer travelers are also willing to splurge. According to the survey, 91% of 2025 summer travelers are willing to pay extra for certain travel expenses, like a hotel with a complimentary breakfast (41%) or a more conveniently located hotel (37%).
Everyone likely has their preferences. Maybe you’re fine with taking a red-eye flight, but absolutely don’t want a hotel outside of the city center. It’s a good idea to evaluate what matters to you when traveling and spend accordingly.
Decide which travel expenses are most important
Most of us are constrained by some sort of budget when traveling and therefore, probably have to accept some trade-offs. Think about what you’re willing to spend more on — perhaps a more convenient flight time for a family trip, so your kids aren’t completely exhausted — and where you can save to make up for it, like opting for a hotel with a good price but fewer amenities. Splurge where it matters, save where it doesn’t.
“You can still travel and minimize — or completely avoid — credit card debt by finding ways to cut costs on your next vacation,” French says. Some options she recommends: “Pick a budget-friendly hotel over a fancy one, especially if you’re heading to a destination where you want to be exploring the area rather than holing up in your hotel.
“Don’t assume you have to visit fancy restaurants. Sometimes even a grocery store deli can make for the most memorable meal.
“And be flexible with your transportation. When deciding whether to drive or fly, consider all the costs, including how many people can fit in the car versus how many seats on an airplane, plus account for extra fees like parking, tolls and gas, or checked bag fees and airport transportation. If you opt to fly, compare airfares by day. Sometimes adjusting your trip date by a single day can result in hundreds of dollars of savings.”
Most Americans are spending time away from home this summer
The majority of Americans are getting out of town this summer, even if they aren’t buying plane tickets or booking a hotel room. According to the survey, 87% of Americans say they’ll travel at least one night away from home this summer, with nearly half of Americans visiting friends or family this summer (47%) and 39% vacationing with family members.
No matter your reason for traveling for this summer, credit card points and miles could help cut costs.
Use credit card points or miles
If you have a pile of points or miles you’re saving up, reconsider your strategy. Over time, travel rewards can lose value, so points might not be worth as much next summer as they are now. Unless you’re planning on redeeming those points for a specific trip in the near future, French recommends using rewards sooner rather than later.
“Travel rewards aren’t fine wine — they don’t get better with age. In fact, with airlines and hotels constantly tweaking their loyalty programs to a level that’s usually not in your favor, your points could be worth less next summer than they are right now,” French says. “The best redemption? The one that makes your next trip a little bit cheaper. That may very well be this summer vacation.”
Methodology
This survey was conducted online within the United States by The Harris Poll on behalf of NerdWallet from Feb. 5-7, 2025, among 2,091 U.S. adults ages 18 and older, among whom 864 are planning to take a trip that requires a flight or hotel stay this summer. The sampling precision of Harris online polls is measured by using a Bayesian credible interval. For this study, the sample data is accurate to within +/- 2.5 percentage points using a 95% confidence level. This credible interval will be wider among subsets of the surveyed population of interest. For complete survey methodology, including weighting variables and subgroup sample sizes, please contact [email protected].
Summer travel is defined as June, July and August 2025, for the purposes of this survey.
Disclaimer
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