Accounting and consulting firm PwC surveyed 4,000 U.S. consumers (in June) for its Holiday Outlook 2025 and recorded an interesting shift for the upcoming holiday season: For the first time in five years, seasonal spending is expected to soften.
Based on the report, PwC expects a 5% drop in overall average consumer spend and an 11% drop in spending on gifts, likely in response to rising prices, economic uncertainty and the broader cost of living, paired with an increasing consumer preference for “value, connection and brands that ‘get’ them.”
That said, travel and entertainment spending is holding steady, with an expected increase of 1%. The survey shows that 44% of consumers are still planning to travel over the holiday season, primarily motivated to hit the road to visit friends and family (48%). But with 84% of respondents planning to cut back on their overall spending over the next six months, it’s likely that they will be more selective about their travels and on the hunt for good value or ways to cut costs.
Among the generations, Gen Z is pulling back on travel more than other age groups: 55% plan to travel for the holidays this year, down from 61% in 2024. Half of Gen Z respondents who are not planning to travel say that it’s because of cost concerns, compared to 43% overall.
AI is also coming into play as travelers hunt for value. Sixty-eight percent of respondents say they are likely to use AI to compare flights. However, fewer consumers — 57% — indicate that they would use it to actually book travel.
