Many Americans are putting travel plans on hold as economic uncertainty and a volatile stock market shake consumer confidence.
Kimberly Hilliard, co-founder of Front Porch Travel Co. in Maryland, says her phone lines have gone unusually quiet this spring. Normally, she receives up to 10 vacation inquiries a week at this time of year. But after U.S. stock prices dropped sharply in early April, her business slowed dramatically.
“People just stopped calling,” Hilliard said. Even long-time clients, who had spent months planning their trips, have paused their bookings.
She believes the market’s recent instability is making people nervous about committing to expensive travel. “What’s going on with the economy right now is likely influencing their decision to book or not,” she said.
In early April, major U.S. stock indexes saw their worst decline since 2020. The drop followed renewed fears over former President Donald Trump’s trade tariffs and rising tensions with China. Although the markets have made a partial recovery, many Americans remain cautious.
Economists have warned that the tariffs could slow economic growth and push inflation higher. With retirement accounts like 401(k)s taking a hit, some people are cutting back on non-essential spending—especially travel.
According to Bank of America data, consumer spending on hotels and travel activities was down 2.5% in March compared to the previous year. Consumer sentiment also reached its lowest point in nearly three years in April.
Uncertainty is making it harder for airlines to predict demand. Carriers like Delta Air Lines and Frontier Group have even withdrawn their full-year financial forecasts.
For individuals like Tiara Moore, 36, the market decline is personal. While on vacation in Belize, she watched her investments drop by $20,000. Moore, a marine ecologist and founder of the non-profit Black in Marine Science, said the loss changed her priorities.
“I travel because I have financial security,” she said. “But when I see losses like that, I feel I need to save more in my emergency fund instead of spending on trips.” She now plans to cancel all non-essential travel this year—except her upcoming wedding in Las Vegas.
Travelers Stay Closer to Home, Seek Refundable Options
Travel agents say some travelers are still planning trips but are staying closer to home. Others are asking more questions about cancellation policies and leaning toward refundable options.
“They want flexible booking and more travel insurance,” said Jennifer DiDonna, owner of Amazing Journeys & More in New Jersey. “I’m selling more ‘Cancel for Any Reason’ policies than before.”
Travel insurance company InsureMyTrip reports a 30% increase in sales of such policies in March compared to the same time last year. Overall insurance sales from December 2024 to March 2025 rose by 23%.
Meanwhile, international travel interest is falling. According to tourism data firm Data Appeal Company, U.S. flight searches to Italy and France dropped about 12% in March. Searches to the United Kingdom fell by 23%.
For some travelers, even domestic trips are being reconsidered. Herman Sims, 66, from Dallas, Texas, had planned to visit friends in New Jersey for the July 4th weekend. But after learning the two-day trip would cost about $2,000, he and his wife decided to stay closer to home in Tennessee.
Sims, a night operations manager at a trucking company, said his 401(k) took a hit after Trump’s tariff announcement. Although it has recovered somewhat, the couple is playing it safe.
“I’m mostly concerned about the economy for my children and grandchildren,” he said. “I just hope we don’t fall into a recession that affects them down the line.”
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