As Summer Trip Costs Reach Record High, Travelers Get Creative to Manage Spending

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ST. PETERSBURG, Fla., July 14, 2026 /PRNewswire/ — Summer trip costs have climbed to an all-time high of $9,032, a 17% increase over last year, according to new data from Squaremouth, the nation’s largest travel insurance marketplace.

Squaremouth is an online company that compares travel insurance products from every major provider in the United States. Travelers are able to quote, compare and purchase travel insurance plans using Squaremouth's comparison engine and over 30,000 customer reviews. All policies purchased through Squaremouth also come with a Zero Complaint Guarantee.

Despite this increase, Squaremouth’s data shows Americans aren’t cutting summer travel from their plans. Rather, they’re getting creative to make it work.

Here are the three creative strategies travelers are using:

Making Budget Tradeoffs to Fund Travel

In a survey of more than 3,000 Squaremouth customers, more than half (54%) said they plan to cut spending on other areas of their lives to prioritize travel in 2026. Specifically, retail shopping (19%) and dining out (12%) are the most common tradeoffs travelers are willing to make.

Choosing Closer-to-Home Destinations

Travelers are adjusting where they go this summer, swapping expensive destinations for cheaper alternatives where their dollar goes further. Squaremouth’s data shows a rise in popularity for closer-to-home destinations, such as Canada and the Caribbean, where shorter flight times and lower accommodation costs make for more budget-friendly trips.

Planning Shorter Trips to Offset Costs

Gen Z travelers, who have less disposable income, are also taking a different approach to keeping costs down. This group is reducing their trip lengths by 2 to 5 days to account for the recent price increases. As a result, this is the only generation of travelers who has been able to keep spending flat year over year.

“We’re seeing from our data that travelers are clearly determined to move forward with their trips this summer, even as costs continue to climb,” says Jackie Mondelli, Chief Marketing Officer at Squaremouth. “They aren’t willing to sacrifice their vacations, and they are thinking outside the box to make it work.”

Squaremouth’s Q2 2026 Travel Insurance Trends Report offers an in-depth analysis of these trends. The full report is available here.

About Squaremouth 
For over 20 years, Squaremouth has helped more than 4.6 million travelers quote, compare, and purchase travel insurance online. Renowned for its award-winning customer service, commitment to transparency, and unbiased approach, Squaremouth has been a leader in travel insurance comparison since 2003. As America’s largest travel insurance marketplace, Squaremouth.com features more providers and plans than any other platform.

Contact
Steven Benna
Senior Manager, Marketing
[email protected]

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SOURCE Squaremouth