Rising flight and hotel prices are splitting the American summer travel market into wealthy vacationers and budget-conscious staycationers.
Affluent travelers continue to book luxury trips, while inflation forces lower-income households to delay or cancel their plans entirely.
A recent Deloitte survey reveals that only 45% of Americans plan to travel this summer, a six-year low.
Middle-income families showed the sharpest decline, with travel intent dropping from 45% last year to just 37%.
American Airlines CEO Robert Isom confirmed a K-shaped demand pattern, noting that high-income travelers significantly outpace others.
Skyrocketing fuel prices drove economy airfares up 20% in April, squeezing budget flyers who now choose cheaper domestic destinations.
In contrast, premium cabin fares rose just 7%, making first-class upgrades relatively manageable for wealthy consumers.
Budget-conscious vacationers are opting for driving trips or all-inclusive cruises to keep overall costs predictable and manageable.
Consequently, demand for economy hotels drops, while luxury resorts enjoy robust and steady growth this season.
