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Travel Is Pricier Than Ever, But People Are Still Booking Smart

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Travelbinger

June 4, 2025 · 3 min read

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Travel Is Pricier Than Ever, But People Are Still Booking Smart
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If your summer plans include packing up the grandkids or maybe finally booking that trip to Scotland you’ve talked about for years, you’re in good company.

A new report from Squaremouth, a trusted travel insurance marketplace, reveals how Americans are traveling this summer, and the trends are spot-on for anyone looking to make the most of their vacation days. Overall, it appears that Americans are planning to spend more, travel smarter, and bring loved ones along for the ride.

Family Trips Are the New Hot Ticket

It seems like the days of solo getaways might be on hold for a little bit. In 2025, nearly half of travelers (47%) are planning multigenerational or family vacations: think grandparents, kids, and grandkids all together under one roof (or stuffed into one cruise cabin). That’s a 17% jump from last year, according to Squaremouth’s latest data.

Maybe you’ve got a bucket list tacked to your fridge or floating around in your mind; you’re not alone. Forty percent of travelers aim to check off big-ticket destinations this year. With prices rising, more folks are choosing “one great trip” over a handful of smaller ones and making that big trip count.

Skipping the Heat for “Coolcations”

Raise your hand if sweltering August temps don’t sound appealing.

Turns out a lot of people aren’t raising their hands. Travel to chillier spots like Iceland (up 30%), Norway, Canada, and Ireland is way up this summer. These “coolcations” still offer stunning scenery, mild weather, and a break from the sweat-drenched crowds of typical summer hot spots. Perfect for those who’d rather swap flip-flops for a light jacket and a fjord cruise.

Travel’s Getting Pricier, But People Are Still Going

The average trip is now ringing up at over $7,200, according to Squaremouth, which might make you gasp — but it hasn’t stopped people from booking, apparently.

Instead, 72% are planning one or two bigger trips this year rather than spreading themselves thin. The message? If you’re spending the money, make it meaningful. That might mean finally getting to Greece or just picking a place you’ve never been.

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More Folks Are Insuring Their Trips

When trips cost this much, travel insurance isn’t optional; it’s peace of mind, especially if you’re planning on spending a lot of your hard-earned money on a once-in-a-lifetime trip.

Squaremouth reports more travelers are choosing policies that cover cancellations, medical emergencies, and delays. Interest in Cancel For Any Reason coverage has doubled. After years of uncertainty, people want options. Plus, a backup plan never hurts.

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