Katie Nguyen and her fiancé are in the midst of wedding planning, but they’d rather spend their hard-earned money on a trip instead of “a big fancy wedding.”
That’s because the California resident loves to travel, especially as a foodie. She takes small trips as often as once a month and tries to go abroad at least a couple times a year. This year, Nguyen has plans to visit San Diego, New York, Hawaii and Vancouver, Canada. On her wish list are Costa Rica and Vietnam.
Amid rising travel costs, Nguyen prioritizes travel in her budget and cuts expenses elsewhere. She recently debated a monthly membership to a fitness studio, but decided she could use weights at home and run outside to save those couple hundred dollars a month. The communications professional is also mindful about “frivolous shopping,” like how buying a new shower curtain for her guest bathroom can wait.
“It’s like, does it make sense to spend that money there and trying to identify the things that give us the most bang for our buck and really add value and impact to our life,” Nguyen told USA TODAY. “I think it’s just how we want to allocate money as prices continue to go up.”
A new study by LendingTree of 2,000 Americans found that 75% of respondents say high gas prices and airfare are impacting their travel plans, with 84% concerned about “affording their ideal trip.” Despite this, 40% are still planning to travel this year — they’re just finding other ways to make travel work for their finances.
This means prioritizing travel in their budgets, even if it’s altering plans or cutting back on other expenses. “At the end of the day, I do think it’s also figuring out what your priorities are,” Nguyen added.
Where Travelers Are Cutting Costs
A study commissioned by PayPal in partnership with Edelman Data & Intelligence in May 2026 found that nearly 78% of 2,001 American adult respondents will still travel in 2026 despite higher prices, and 66% said they’d make a “sacrifice” to attend their dream trip.
“Consumers are increasingly viewing travel as an investment in experiences, well-being, and connection,” Amy Bonitatibus, SVP, Chief Communications & Corporate Affairs Officer at PayPal, told USA TODAY. “Instagram and TikTok have fueled that shift by putting aspirational destinations right at people’s fingertips.”
To afford their bucket-list trips, Americans are willing to slash other expenses. In the survey, 40% said they’d cut dining out, 36% said they’d forgo nights out with friends, 35% said they’d stop shopping, 31% would no longer use data apps and 30% would quit the gym.
“What’s interesting is that consumers aren’t necessarily spending more, they’re finding smarter ways to make travel work,” Bonitatibus continued. “Many are making small tradeoffs in everyday spending like limiting the number of dinners out and going on fewer shopping sprees so they can experience that trip they’ve been staring at in their Instagram feed.”
Some aren’t just budgeting more carefully — they’re starting a side hustle to boost their travel funds. The PayPal survey found that one in three Gen Z adults is taking on more work to afford their trips.
Although planning her trips now requires more research and flexibility, Nguyen continues to keep travel at the forefront when figuring out her annual budget. “It’s all kind of a balancing act,” she said.
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