by Mia Taylor
Last updated: 5:40 PM ET, Tue June 23, 2026
Fourth of July weekend has historically been a major travel weekend for Americans. And this year, despite the soaring cost of living amid record inflation in the United States, that pattern appears set to continue.
Rather than giving up on travel entirely for the popular holiday, Americans are making more deliberate, budget-focused decisions about how and what they book, according to new data from travel giants Expedia and VRBO.
In fact, money is such a pressing issue that searches on the Expedia booking platform using budget filters have surged 1,265% year-over-year.
At the same time, interest in economy fares has spiked more than 120%, according to Expedia and searches for more budget-friendly, all-inclusive stays have shot upward by 50%. Americans have also increasingly turned to using rewards programs to cover travel expenses. On Expedia, redemptions being made via its OneKeyCash program are up 35% as travelers actively use rewards to offset costs.
Meanwhile, on VRBO, the home rental platform, 37% of summer vacation rental bookings are for discounted properties. Also noteworthy, bookings made within 14 days of check-in are up 16%, suggesting more travelers are waiting for deals. Travelers are also leaning into group trips as a way to split costs and get more value from rental stays.
"This summer, travel isn't slowing down — it's being reshaped,” Expedia travel expert Melanie Fish told TravelPulse.
A separate report from Priceline reveals a similar narrative, pointing out that while costs are higher this year, Americans are not giving up on travel. Instead, they're looking for alternative ways to make it happen, including opting to cut back on non-travel spending. While 44% of Americans say a summer vacation feels out of reach for them
this year, 73% report planning to do whatever it takes to travel.
All of these moves come at a time when costs for the
American household are skyrocketing. In 2025, inflation under the Trump
Administration,increased costs for families across the board, including
$320 more for housing and $240 more for transportation, according to a congressional report from the Joint Economic Committee. Overall, families spent $1,625 more on average due to inflation during Trump's first year in office.
During 2026, inflation has continued to soar. The Consumer Price Index increased 4.2%
in the 12 months through May 2026, which was the largest gain since April
2023. Prices have risen faster than wages for several months
running.
Value-driven destinations dominate
Part of the “reshaping” of travel that Fish is referring to has included Americans making different destination choices. Both Expedia and VRBO data reveals increasing demand for destinations that are considered to be "value driven."
“As major global events and rising costs influence decisions, travelers are either staying closer to home or seeking out destinations where they can get more for their money. Travelers are less 'where do I want to go?' and more 'how do I make this trip work?,” Fish added.
Expedia's trending Fourth of July “value destinations” include Moab, Utah; Gatlinburg, Tennessee; Flagstaff, Arizona and Bozeman, Montana.
Similar data from VRBO shows a preference among American travelers for destinations like Cherokee, North Carolina; Melbourne, Florida; Phoenix, Arizona; Fort Myers, Florida and Rochester, New. York where travelers can still find vacation rentals under $250 per night.
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