Budget Travel Insights: Top Destinations and Trends for 2025

Is budget travel the secret to seeing more of the world without sacrificing quality? For millions of travelers, the answer is yes. Throughout the year, budget-conscious explorers are refining how they spend, save, and plan their trips. From top destinations to travel priorities and booking habits, our latest findings reveal how these savvy travelers stretch their dollars for unforgettable experiences.

In this article, we’ll uncover the destinations they love, the tools they use to save, and the sacrifices they’re willing to make to keep travel affordable. Whether you’re looking for inspiration or tips to boost your own travel game, these insights shed light on how budget travelers are winning in 2025.

Key Takeaways

• In the US, New York City, Las Vegas, and Orlando top the list of budget-friendly travel destinations.
• London, UK; Rome, Italy; and Paris, France are budget-conscious travelers’ top international destinations.
• 51% of budget-conscious travelers budget less than $1,000 per trip; overall, budget-conscious travelers take 3 trips per year.
• Millennials budget the least per trip ($1,666), while Gen X spends the most ($2,089) and is most likely to pick up side gigs to afford travel (34%).
• Gen Z travelers allocate the highest percentage of their income (11.5%) to travel, prioritizing experiences and group trips to save costs.
• Travelers booking last minute budget less per trip ($1,545) and take more trips per year (3) compared to those who book well in advance ($2,072 per trip and 2 trips per year), yet those booking well in advance report 66% higher satisfaction compared to last-minute planners.
• 40% of budget travelers plan to increase their travel budgets in 2025, with an average boost of $1,027.
• Gen Z’s preferred international destinations include London, UK; Rome, Italy; and Tokyo, Japan.

How Budget Travelers Plan, Save, and Prioritize in 2025

Budget-conscious travelers are experts at making their money go further. From prioritizing key expenses to leveraging rewards and savvy booking strategies, they know how to get the most bang for their buck. This section includes the tools and techniques that keep their travel dreams alive without overspending.

On average, these savvy adventurers take three trips per year, with 12% managing to squeeze in five or more getaways annually. Keeping costs in check is key: 51% spend less than $1,000 per trip, with Gen Z travelers leading this group at 58%. However, their total travel budget tells a different story. The average budget per trip was $1,802, though millennials set aside the least ($1,666), while Gen X spends the most generously at $2,089.

When it comes to allocating income, travelers have committed an average of 8.6% of their annual earnings to vacations, with Gen Z again taking the top spot by dedicating 11.5%. Travel companions also shape the experience — 37% said they prefer exploring with a partner or spouse, followed closely by 33% who opted more for family trips. Smaller shares favor friends (16%) or solo adventures (13%).

Interestingly, 37% reported their travel budget has grown in recent years by an average of $941, suggesting optimism and greater financial flexibility. Meanwhile, 16% experienced travel budget cuts, seeing an average decrease of $1,143, underscoring the uneven financial pressures many travelers still face.

Accommodations topped the list for 39% of travelers when budgeting for a trip, followed by experiences and activities at 32%. Transportation came in third, with 15% prioritizing it. Generational preferences stood out — Gen Z focused heavily on experiences (35%), while Gen X was the most likely to prioritize transportation (17%). Millennials, meanwhile, carved out room in their budget for food and dining, with 14% making it a top priority.

When searching for deals, accommodation booking platforms emerged as the favorite, used by 69% of budget-conscious travelers. Comparison sites for package deals came next at 42%, with Gen X leading the way (49%).

Cashback and rewards programs followed at 37%, while flight deal websites (24%) and discounted tour and activity sites (18%) also played a role in cost-saving strategies. Millennials relied on accommodation booking platforms the most, with 73% leveraging them to stretch their budgets further.

Booking flights and hotels well in advance, traveling during non-peak seasons, and using travel reward points topped the list of ways budget travelers save money. Millennials were particularly adept at leveraging reward points, with 42% relying on them to cut costs. Gen Z, on the other hand, leaned on group travel, with 22% using it to share expenses. Gen X showed their hustle, with 34% taking on side gigs to afford their adventures.

Cutting back on everyday expenses was also common. Nearly half of all budget travelers (48%) reduced dining out, while 42% scaled back on entertainment costs. Alcohol and nightlife were also trimmed, with 40% choosing to skip the tabs to save for travel. These sacrifices reflect a clear commitment to prioritizing travel without overextending their wallets.

Top Travel Destinations for Budget Travelers

Here’s a breakdown of the most popular hotspots, with generational and gender-based trends adding an extra layer of insight.

New York City claimed the top spot across all groups, cementing its status as a must-visit destination for budget-conscious travelers. Las Vegas, Nevada, and Orlando, Florida, rounded out the top three overall, offering a mix of entertainment and family-friendly options.

Gen Z favored New York, Los Angeles, and Las Vegas, reflecting their interest in urban vibrancy and nightlife. Millennials also picked New York and Los Angeles but included Orlando, suggesting a blend of cultural appeal and theme-park adventures. Gen X stuck with New York, Las Vegas, and Orlando.

Men gravitated toward Las Vegas, New York, and Los Angeles, emphasizing entertainment-heavy destinations. Women, on the other hand, leaned toward New York, Orlando, and Los Angeles, balancing iconic cityscapes with family-friendly attractions.

London, UK; Rome, Italy; and Paris, France, emerged as the top international destinations for budget travelers overall. Gen Z prioritized Rome, London, and Tokyo, while millennials stuck to a European trifecta of London, Rome, and Paris. Gen X chose these as well, leaning toward London, Paris, and Rome as their top spots (in that order). Men favored London, Tokyo, and Rome, and women leaned into London, Paris, and Rome.

Budget Travel Reflections and 2025 Changes

Budget-friendly travel has transformed how millions explore the world. This section reveals why budget travelers love their approach and how planning and spending could shift in 2025.

Budget-conscious travelers felt overwhelmingly positive about their experiences, with 93% saying they’d take another budget-friendly trip. It’s not just personal preference, either — 80% said they’d recommend this travel style to others, showing just how rewarding it can be.

Despite the common assumption that budget travel is stressful, 44% disagreed. Smart travel planning can eliminate many pain points. Satisfaction levels were high, too, with over half (52%) reporting they were extremely satisfied with their last trip. 

In 2025, 40% of budget travelers said they plan to increase their travel budgets by an average of $1,027, signaling growing confidence in affordable travel. On the flip side, 9% expected to decrease their budgets, trimming an average of $950.

Timing plays a major role in budget travel booking. Last-minute bookers — those finalizing plans within two months of travel — have taken an average of three trips per year and allocated $1,545 per trip. Travelers with budgets under $1,000 were 53% more likely to book last-minute, highlighting a connection between tighter budgets and spontaneous plans.

In contrast, those booking at least six months in advance planned fewer trips (two per year) but budgeted significantly more per trip, averaging $2,072. These early planners also reported higher satisfaction levels, being 66% more likely to be very satisfied with their trips compared to last-minute bookers. So, while spontaneity has its perks, planning ahead can lead to a more fulfilling travel experience.

More Adventures, Fewer Compromises in 2025

Budget travel is a lifestyle that offers satisfaction, freedom, and adventure. As we’ve seen, budget-conscious travelers are strategic in how they prioritize spending, make sacrifices, and embrace tools to save big. Whether it’s planning months in advance, leveraging rewards programs, or cutting back on dining out, their methods ensure more opportunities to explore the world.

With 93% of budget travelers eager to do it all over again, it’s clear this style of travel can be immensely rewarding. Whether you’re a last-minute adventurer or a meticulous planner, 2025 is sure to be an exciting year for seeing the world without breaking the bank.

Methodology

For this study, we surveyed 1,010 Americans who consider themselves budget-conscious travelers about their favorite destinations, spending, and strategies to afford travel. Among the respondents, 7% were baby boomers, 24% were Gen X, 52% were millennials, and 18% were Gen Z. In addition, 53% identified as women, 45% identified as men, and 2% identified as non-binary. Percentages may not total 100 exactly due to rounding.

About Vio.com

Vio.com is trusted by 100 million users each year to find better value, every stay with savings of up to 45%. We discover exclusive accommodation deals and compare prices across all the top travel sites, so you can book the best option with ease. Our exceptional customer support team is available 24/7, which is reflected in our ‘Excellent’ rating on Trustpilot and rapid growth.

Fair Use Statement

You are welcome to share this content about budget travel trends for noncommercial uses; please attribute Vio.com by linking back to our original article.