How Americans Save on Travel and Maximize Vacation Time

Stats Show 89% of U.S. Travelers Use Travel Hacks for Savings

With limited vacation allowances and rising travel costs, finding the time and money for a getaway can feel like an uphill battle.

In response, people are embracing new ways to take vacations, such as workations, bleisure trips, or high impact mini-breaks, to make the most of their limited free time.

To make vacations more affordable, many travelers are also turning to money-saving hacks, like bundling flight and accommodation bookings for better prices, or using credit card points to maximize their budgets.

This report offers a comprehensive look at how U.S. travelers are overcoming the barriers to travel and finding ways to make their vacations a reality.

The U.S. Vacation Gap

The United States is the only country among advanced economies that doesn’t guarantee paid vacation days⁵. In contrast, workers in the UK, New Zealand, and Germany benefit from at least 20 protected paid vacation days per year, not including national holidays.

In fact, 75% of nations in the Organization for Economic Co-operation and Development mandate at least 20 days of paid vacation per year⁵ — a standard the average American worker only reaches after 20 years of service⁶.

With no federal regulations, American employers are only required to provide paid leave on 10 federal holidays annually. This means conditions for workers vary greatly between different places of employment.

Most U.S. private-sector employees with under a year of service receive just 5–9 paid vacation days per year⁶.

Unused vacation days stack up

Even when vacation days are offered, more than half of U.S. workers don’t use them. In 2018, 52% of employees ended the year with unused vacation days, totaling 705 million forfeited days².

If every American used those days for a one-week vacation, it would result in 100 million trips — enough for every U.S. family to take 3 vacations — and an additional $555 billion for the travel sector⁷.

A Gallup study⁸ reports that only 49% of Americans prioritize vacations with family and friends, highlighting a cultural hesitation to take time off.

The key factors behind this relate to workplace pressures. 61% of surveyed workers in the United States admitted that they do not use allotted paid time off (PTO) because they fear it will make them appear replaceable².

Additionally, 56% pointed to a lack of coverage at work, or an overwhelming workload². Non-job related factors like travel safety and cost were cited as less prevalent reasons for avoiding vacations.

Forfeited PTO across the U.S.: State-by-state analysis

West Coast states like California and Oregon lead the nation in neglecting vacation time, with 59% of paid leave going unused. New England (56%) and West North Central states (56%) like Minnesota, Iowa, and Missouri trail closely behind⁹.

High-pressure industries like tech and entertainment on the West Coast, combined with a significant gig economy, likely discourage workers from taking time off. In New England, the prevalence of small businesses with limited flexibility may contribute to high rates of unused leave.

States where workers maximize allotted vacation time

Workers in Ohio, Michigan, and Illinois are the most proactive in taking paid leave, with 52% using their full vacation allowance⁹. This may reflect stronger union influence in the Midwest, which historically promotes workers' rights, including PTO.

Alabama, Kentucky, and Tennessee follow closely at 51%, with workers likely influenced by strong family-oriented values and a “work hard, play hard” way of life common in rural areas⁹.

New York, Pennsylvania, and New Jersey take third place at 50% of fully used vacation time⁹. While these states have finance-heavy industries, they’re perhaps more likely to be open to modern work-life balance policies, including encouraging employees to make use of vacation time.

The personal costs of America’s vacation deficit

Experts warn of the toll of avoiding vacations on mental health. Dr. Catherine Sykes, a chartered psychologist who specializes in the psychology of high-achieving professionals, explains:


“Not taking enough vacation time can significantly impact an employee's mental health and personal relationships due to increased stress, reduced resilience, and limited time for meaningful social interactions,” she says.

With stress reported as a common problem among U.S. workers, prioritizing vacation time is particularly important. 83% of American employees experience daily job-related stress, with 76% admitting it strains their personal relationships¹⁰.

Studies reveal a vacation guilt paradox among many Americans. 54% of U.S. employees work while on vacation, and 47% feel guilty if they don’t work at all¹¹, highlighting the challenges of achieving a true work-life balance.

“The reality of being human is that we are very good at doing acute short-term stress but not long-term chronic stress,” Dr Sykes explains. “Taking regular vacation time allows employees to rest, recharge, and return to work with greater focus and energy.”

Changing Vacation Culture in the United States

Vacations aren’t just good fun — the positive effects of a break from work are felt long after the trip itself is over. Even with limited time off, setting aside time to travel can help improve mental health, strengthen relationships, and stave off burnout.

There’s a clear positive for employers, too — A study by Ernst & Young revealed that employees who took an additional 10 hours of vacation saw an 8% improvement in their year-end performance¹².

Workers who prioritize taking vacations report significant benefits, including a 17-point increase in overall happiness, especially in their sense of purpose and relationship satisfaction⁸.

Frequent travelers also show a 22 percentage point increase in terms of satisfaction with their physical health and wellbeing compared to homebodies².

Rethinking the power of vacation time

With evidence showing that the U.S. vacation status quo needs a shake-up, experts believe that this revolution requires a redefined mindset from the top down.

Dr. Sykes, whose therapy and coaching services are designed for professionals experiencing burnout, explains:

“Changing the mindset that taking time off makes employees potentially replaceable requires a cultural shift within the organization to where taking breaks is valued as a part of good performance.”

“When employees skip vacations and don’t take enough time off,” Dr Sykes adds, “the negative impacts can extend to their employers too, from reduced productivity and increased absenteeism to decreased employee morale.”

She concludes, “Encouraging regular vacations benefits both employees and employers by fostering a healthier, more engaged, and sustainable workforce.”

How paid time off is being redefined in the workplace

Remote work flexibility has become a key factor in job satisfaction for U.S. employees. 60% of remote workers and 30% of hybrid workers say they would consider changing jobs if this option were removed¹³.

With flexible work arrangements more mainstream than ever, attitudes toward how we work and take time to travel are changing. Increased adaptability has enabled employees to gain more control over how and when they vacation.

The future of vacations for U.S. workers

In a move to improve retention and employee wellbeing, some companies are leading the charge of narrowing the United States vacation gap, as compared to the rest of the world.

A recent study¹⁴ found that more companies are moving toward unlimited paid time off programs. Currently, 12% offer unlimited PTO for some employees, up from 9% two years ago, with 16% planning to adopt the policy in the next two years.

High-profile companies like Netflix, LinkedIn, and HubSpot are among those setting the trend with more generous vacation offerings, with no formal cap on paid time off per year.

Not all businesses plan to go unlimited, however. International firm Deloitte now grants its U.S. employees 25 days of paid vacation leave annually, with the explicit aim of reducing burnout and promoting better work-life balance¹⁵.

Nearly half of businesses surveyed are increasing the number of vacation days their employees receive — 23% have adjusted the number of days provided, and 22% are planning or considering similar changes¹⁴.

These shifts reflect a growing recognition among employers that redefining paid time off is essential in today’s evolving workplace.

Travel Trends Shaped by Vacation Challenges

Flexible work arrangements, coupled with limited paid time off and a reluctance to take vacation time, have given rise to several notable changes in the way Americans are traveling.

Traditional two-week vacations are increasingly giving way to shorter, more time-efficient trips. Flexible work arrangements are also opening the door to combined work and travel options for time-poor U.S. workers.

Flexible work arrangements mean more time to travel

For workers who receive fewer paid vacation days than their counterparts, remote work offers a valuable alternative — workations, allowing employees to clock in and work remotely from a destination of their choice.

50% of remote-capable U.S. workers now have hybrid roles, splitting their time between home and the office. 30% work exclusively from home¹³.

Though only 29% of the overall U.S. workforce says they find the concept appealing, interest in workations rises to almost 40% among employees who currently use few or no vacation days².

37% of workers who are interested in taking a remote work break say that it would help them overcome the fear of looking replaceable. 34% report that a workation would help them manage their workload, compared to a regular vacation².

Combining business and leisure in one trip

It’s now estimated that of the 405 million long-distance business trips made by American employees every year, 60% are extended to incorporate leisure time³, in a practice known as bleisure travel.

The average bleisure trip for U.S. workers lasts 6.3 days and is made up of 59% business, and 41% leisure time³, allowing time for rest and relaxation, or sightseeing and tourism.

Nearly half of business travelers (48%) say a city with great entertainment or activities influences their decision to extend their trip for leisure time. For 37%, a reduction of the cost of the trip, thanks to some expenses being covered by their company, is the key draw³.

Younger workers lead the shift in travel trends

Working vacations are of particular appeal to younger workers. 39% of Millennials are in favor of mixing work and travel, dropping to 28% among Gen X employees, and just 18% of Baby Boomers².

This preference likely stems from younger employees facing stricter limits on PTO due to fewer years of service, making workations a practical solution to the vacation problem.

Gen X employees average 23.4% more vacation time than Millennials, while Baby Boomers enjoy 36.5% more².

A majority of younger workers are also scheduling trips around business travel to counter vacation inequality. 78% of Millennials aim to include personal time off in business trips, using paid vacation days to extend work getaways¹⁶.

Mini trips help maximize PTO

The pressure to make the most of limited paid leave is also driving a rise in fully-loaded mini vacations, with lengthy trips becoming a thing of the past.

Typically lasting 2 to 5 days, these shorter getaways allow travelers to recharge or explore a new destination without needing extensive time off. U.S. travelers are increasingly embracing this trend, with the average trip now lasting just 4.6 nights¹⁷.

The game plan is to pack as much as possible into your short break — 58% of Millennials and Gen X plan to visit multiple countries in a single trip, compared to 53% of Gen X and 48% of Baby Boomers¹.

Rising Costs Contribute to Barriers to Travel for Americans

Rising inflation²⁴ in recent years has led to a steady upward trend in many of the costs involved in taking a vacation. Travel costs have risen by 18% globally from 2019 to 2023⁴.

Erratic shifts in jet fuel prices, now up 18% from 2019, have resulted in uncertainty and a knock-on effect on airfares¹⁸. To attempt to rebalance supply and demand, all 3 major U.S. airlines (American, Delta, and United) reduced their capacity for Q3 and Q4 of 2024¹⁸.

Even dining out, a staple of any vacation, has become more expensive, with restaurant checks rising 26% between 2020 and 2024, according to the U.S. Consumer Price Index²³.

Travel Costs on the Rise

A snapshot of price changes in travel expenses based on the Consumer Price Index from 2020 to 2024.

Source: U.S. Bureau of Labor Statistics

The U.S. Bureau of Labor Statistics analyzed Consumer Price Index data from 2020 to 2024, tracking price changes for dining out, airline fares, car rentals, and hotels. The data reflects trends across urban consumers in the U.S.

Our charts are interactive. Hover over each data point to see detailed information on how travel costs have changed from 2020 to 2024. Data from the Consumer Price Index.

Against the tide of overall vacation costs increasing, rental car prices are staying affordable, with a national average of $38 per day in late 2024 — 4% lower than in the Fall of 2023¹⁸.

Popular destinations like New York ($57/day) and Chicago ($47/day)¹⁹ buck the trend with significantly higher average rates, reflecting the demand and limited vehicle availability in major cities.

However, many top rental car destinations are seeing reduced prices, making it possible to secure budget-friendly deals in some locations. Miami’s daily rental rates are as low as $26, followed by Orlando at $30 and Las Vegas at $31¹⁹. Orlando remains the most popular pick-up destination for car rental in the United States from 2023 to 2024, maintaining low prices in spite of high demand¹⁹.

Holiday travel hit by price hikes across the United States

According to a Hopper report published in the 3rd quarter of 2024, more than half of Americans (55%) say they’re spending more on travel this Fall than in 2023, while 31% say they’re spending the same¹⁸.

Increasing prices are stretching travelers throughout the 2024 holiday season. Hopper's Good Flight Deal data shows that domestic Christmas flight fares are up 4% from 2023²⁰.

In contrast to domestic flight price increases, there has been a downturn in costs for international travel in the festive season from 2023 to 2024.

Airfares for flights departing the U.S. for Europe are down 11%, the Caribbean 8%, and Oceania 21%, marking the largest decrease. Routes to Canada and South America have also seen a reduction in costs, though smaller at just 2%²⁰.

Industry response to the changing travel landscape

Airlines are responding to the trend of shorter trips and jet fuel price instability by focusing more heavily on add-on fees, increasing costs for travelers regardless of ticket prices.

Data from the U.S. Department of Transportation shows that revenue from extra baggage fees alone grew by almost a third between 2018 and 2022. This far outpaced growth in overall operating revenue, which increased at less than half this rate over the same period²¹.

This shift reflects a broader industry strategy, often referred to as skimpflation, where travelers pay the same base fare but receive fewer included services.

Standard features like seat selection and checked baggage have increasingly been unbundled from ticket prices and are now offered as optional add-ons, generating significant additional revenue for airlines.

Add-Ons in Air Travel: Who's Willing to Pay?

A look at the percentage of travelers by nationality willing to pay for air travel extras.

Source: 2023 YouGov survey on flight add-on payments

YouGov Surveys gathered responses from adults of different nationalities, to gain insights on the percentage of travelers willing to pay for add-on services on flights.

Our charts are interactive. Hover over each section to see what percentage of travelers are willing to pay extra for add-on flight services, by nationality.

Americans are selective with add-on airline extras

Data on add-on fees reflects that U.S. travelers are less willing to pay for extras compared to their international counterparts. Only 16% would pay additional baggage fees, compared to 27% of all respondents²².

In fact, 21% of Americans wouldn’t pay for any add-on services at all, compared to just 12% globally²².

When Americans do spend on extras, seat selection (34%) and extra legroom (28%) top the list, consistent with the preferences of travelers worldwide²².

Only 15% of Americans would pay more for better food and drinks, in contrast to 46% of Indian travelers and 38% of passengers from the United Arab Emirates²².

Overall, the data shows that Americans remain more resistant to additional costs than travelers from other nations, likely as a means to better manage vacation budgets.

How Americans Are Budgeting for Travel

Half of U.S. travelers report cutting back on other expenses to manage the rising costs of holiday travel, with 49% actively seeking discounts and deals. 22% plan to travel on off-peak days, and a fifth will rely on credit card points or miles to offset travel costs²⁰.

These patterns reflect broader spending habits throughout the year. The American Express 2024 Global Travel Trends Report found that 72% of travelers would rather save money for a major trip than spend it on socializing with friends.

A majority of Millennials and Gen Z (77%) report economizing on day-to-day extras like coffee orders, or food delivery, to pay for a vacation, with Gen X (64%), and Baby Boomers (56%) trailing behind¹.

Younger generations are also the most deal-savvy, with 85% prioritizing flight deals to allocate more of their budget toward upgraded accommodations or experiences¹.

The rise of travel hacks for U.S. vacationers

With rising hotel room rates — projected to increase by 2.6% globally in 2025²⁵, Americans are actively seeking ways to save on their next trip.

A Google Trends analysis of the search term ‘Hotel deals’ over the last 12 months shows peak interest from trip planners in New York, followed by Hawaii (66), Nevada (57), and California.

To beat the price crunch, travelers are also turning to insider tips²⁶ — from the best days to book for the cheapest fares, to the best days to take off around federal holidays to maximize paid time off in 2025.

Booking flights on a Sunday can reportedly help U.S. travelers make significant savings. Domestic economy flights are up to 5% cheaper when booked on Sundays compared to Fridays, while business class is up to 7% cheaper²⁶.

Experts report that the cheapest domestic flights are scheduled on Saturdays, offering a potential saving of up to 13% compared to Sunday airfares²⁶.

Avoiding elevated airfares

“US travelers are unaware that everything they do online is used against them in revenue management algorithms by the travel industry,” argues Michel Grebnikof, a travel hack expert and CEO and co-founder of new travel app Twistr.

“This is why different people pay different prices for the exact same flight ticket — it’s called ‘personalized pricing’. It means that people pay higher prices if the algorithms can find and take advantage of certain differentiation parameters between users buying the same ticket.”

This practice extends beyond flights to hotels, rideshare apps, and event tickets. Hotels adjust rates based on browsing habits, rideshare apps vary fares by demand, and ticket prices surge as interest grows.

Mr. Grebnikof continues, “For example, if you are booking from a mobile app versus a desktop browser you might pay a higher price because the algorithm believes you are locked in one application, or that you are in a hurry.”

He also highlights the language used in the search process and the location of the user amongst dozens of other parameters that can push up costs without the customer's knowledge.

To avoid this, many are turning to apps like Twistr, which automatically applies multiple travel hacks to secure the lowest prices. Others are getting savvy on the best ways to search to limit the amount of your personal information on offer.

Top tips for avoiding biased pricing when making travel bookings

Following these recommendations can help to ensure you’re paying a fair price for your next trip:

Key Takeaways on U.S. Travel Habits and Vacation Trends