Are North American consumers changing how they travel?

Amid an uncertain economy, new data from Lighthouse reveals that consumers are simply adopting a more strategic, cautious, and spontaneous approach to travel.

This shift has led to clear trends: travelers are booking later and for shorter periods.

This fundamental change is reshaping the industry, forcing a re-evaluation of long-held revenue management strategies as travelers prioritize value and flexibility above all else.

Key takeaways

• Shorter stays are the new normal: Searches for stays of three nights or less are at a three-year high.

• Booking windows are shrinking: Searches made within 28 days of a stay have risen consistently since 2023.

• The hunt for deals: Fueled by a desire for value, travelers are increasingly seeking last-minute discounts, a trend confirmed by news reports and industry analysis.

• Economic drivers: Economic uncertainty and a weaker job market are the primary causes of this behavioral shift, leading to a more cautious consumer.

• Travel desire remains: Despite economic concerns, the desire to travel remains strong; consumers are simply being more conscientious, opting for shorter, more flexible trips.

The new North American traveler: A pivot to last-minute, short-stay vacations

A fundamental shift is underway in the North American travel market. Our proprietary data, compiled from millions of daily searches on major online travel agencies, reveals that searches for stays of three nights or less and those made within 28 days of travel have both reached a three-year high.

This 5% year-to-date increase points to a new consumer mindset – one that favors last-minute planning and shorter trips, driven by a desire for flexibility and value in an uncertain economy.

Economic uncertainty and the hunt for value

This shift in travel behavior is a direct response to a more cautious economic outlook.

Travelers are increasingly holding out for last-minute deals, and in response, airlines and hotels are offering more discounts.

A June report from Reuters noted that summer travel demand had softened compared to 2024 due to uncertain macroeconomic conditions. This sentiment was echoed by CEOs from major firms like Southwest and Hyatt, who stated that consumers were holding out for better value.

Similarly KAYAK data cited by the New York Times in August 2025, shows airlines responding with plenty of last minute discounts. US domestic flights were down 3% Year-on-Year (YoY) over the summer, while international outbound flights from the US fell by a much steeper 11%.

This dynamic is a direct reflection of consumer apprehension fueled by a cautious economic outlook. Official confidence measures in both the US and Canada show that consumers feel less secure about their economic prospects than they did last year, particularly concerning the jobs market.

A clear shift in hotel length-of-stay pattern for 2025

Travelers are now favoring shorter getaways. The most striking evidence is the dramatic and sustained increase in searches for single-night stays, which now account for over 40% of searches, up from roughly 33% in January 2023.

This significant change, along with a three-year high in searches for stays of three nights or less, points to a new travel paradigm where brief, frequent trips are becoming the norm.

A year-to-date comparison shows that while searches for all other lengths of stay have consistently declined, searches for one-night stays are up by a significant 8% over the averages of 2023 and 2024. This deliberate shift by consumers points to short trips and stopovers becoming a key part of their vacation plans.

The data also demonstrates that while travelers are not necessarily taking fewer trips, they are breaking down longer vacations into multiple, shorter ones. This could be a way to manage costs, as shorter trips often involve lower overall expenses for accommodation, dining, and activities.

It also provides a sense of control and flexibility, allowing travelers to take more frequent breaks without the commitment and planning required for a lengthy getaway.

For the hospitality sector, this trend means a greater focus on attracting and catering to a high volume of guests for brief periods. It's a significant shift away from the post-pandemic revenge travel era, where travelers splurged on long, expensive trips to make up for lost time.

The shrinking booking window

Our data shows travelers are making plans much closer to their arrival date, with the share of searches made within 28 days of a stay rising from 35% in early 2023 to nearly 50% by mid-August 2025.

Unlike previous years, this trend has not followed the typical seasonal decline, signaling a persistent shift in consumer behavior.

By mid-August of 2025, the share of searches made within 28 days of a stay had climbed to 57%, a significant jump from 50% in 2024 and 46% in 2023.

The trend of shorter booking windows has continued to move upward throughout summer 2025 and has not yet started to decline. This is a significant break from the seasonal patterns of 2023 and 2024, when last-minute searches would typically tail off after the summer peak.

This persistent shift is a clear indication of consumer apprehension, as travelers are less willing to commit to long-term plans in an uncertain environment and are instead holding out for last-minute deals.

The trend is unmistakable when we look at the year-to-date data. From January to August 2025, the share of searches made within four weeks of a stay averaged 45% of all searches in North America – an 8% increase compared to 2023 and a three-year high that continues to rise each year.

Consumers are aware that hotels are looking to fill rooms and are holding out to see if prices drop. This creates a volatile and unpredictable market for hoteliers, who must now become masters of dynamic pricing to attract these last-minute bookers without giving away too much margin.

The traditional booking curves are no longer reliable, making real-time, forward-looking data more crucial than ever.

Implications for North American hoteliers

The primary driver behind these trends is a less assured economic outlook for North American consumers. This apprehension is a result of several factors, including volatile policy like new tariffs, persistently high interest rates, and a weaker job market outlook, all of which have lowered consumer confidence, particularly regarding job security.

Despite a reduction in overall confidence, consumer spending has remained robust. According to Deloitte's Consumer Signals research, while financial well-being ratings have declined, the intent to spend on travel has reached a four-year high. This paradox highlights that despite economic concerns, the desire to travel remains strong.

This apparent contradiction highlights a newfound focus on value among North American consumers. They are not abandoning travel, but are instead approaching it with a new mindset.

Travelers are not giving up on vacations; they are simply being more conscientious about how they spend. They are choosing to take more frequent, shorter vacations that offer better value for their money and are gravitating toward last-minute planning to find good deals.

This shift presents both a new challenge and a significant opportunity for the North American travel and hospitality industry. To succeed, businesses must adapt to a compressed and volatile booking curve. This requires moving beyond historical data and adopting a proactive, data-driven approach to revenue management that relies on forward-looking indicators.

Use forward-looking search data to fully understand and act demand in your market

By leveraging forward-looking search data, you can gain an early warning of any behavioral shifts, anticipate demand and adjust your pricing and marketing strategies in real time, before competitors can even see the trend on the books.

To adapt, you must rethink your last-minute offer strategies. Consider creating length-of-stay deals to entice longer visits, designing new packages for single-night or weekend stays, or launching targeted marketing campaigns to attract last-minute searchers from specific geographic regions.

In a tourism market where traditional patterns are being rewritten, access to real-time, quality data is the ultimate competitive advantage.

Get in touch today to see how forward-looking data could be the difference between reacting to a downturn and proactively adjusting your strategy to thrive in a dynamic environment.