NEW YORK — The summer travel season is revealing one of the clearest signs yet that America’s economy is increasingly splitting into two very different experiences.
For higher-income households, summer 2026 looks much like previous years: vacations are booked, flights are full, hotels are busy, and travel spending remains strong.
For many lower-income families, however, summer travel is simply not happening.
A new analysis from the Bank of America Institute shows that nearly four in ten households earning $66,000 or less annually expect to have no summer travel plans at all this year. At the same time, spending among middle- and higher-income households continues to increase.
The contrast highlights what economists often describe as a K-shaped economy—one in which different groups experience the same economic conditions in dramatically different ways.
For lower-income households, the explanation is straightforward.
Rising costs for necessities are crowding out discretionary spending.
According to Bank of America data, travel-related spending among lower-income consumers has declined year over year as families redirect money toward groceries, gasoline, housing, utilities, and other essential expenses.
Vacation budgets are often the first casualty.
When food, transportation, and household costs consume a larger share of income, optional purchases become increasingly difficult to justify. A flight, hotel stay, or family getaway may simply no longer fit within the budget.
The decline in savings is making matters worse.
The U.S. personal savings rate has fallen to approximately 3.6%, one of the lowest levels in recent years. Many households are using savings or credit cards to bridge the gap between income and expenses, leaving little available for travel.
For higher-income households, the picture is entirely different.
Families earning more than approximately $66,000 annually, and particularly those above $130,000, continue spending aggressively on vacations despite higher airfare, hotel rates, and travel costs.
The same economic pressures affecting lower-income families exist, but they represent a smaller share of overall household income.
A more expensive airline ticket may be frustrating.
It is not necessarily a barrier.
That difference is reshaping the travel industry itself.
Airlines, hotels, resorts, cruise operators, and travel companies are increasingly targeting premium travelers who remain willing to spend despite higher prices. Loyalty programs, premium seating options, upgraded experiences, and luxury offerings continue expanding as companies pursue higher-margin customers.
Meanwhile, many budget-conscious travelers are being priced out.
Over time, that shift could fundamentally alter how travel companies design products, set prices, and market services.
The implications extend beyond tourism.
Vacations have traditionally represented more than leisure spending. They have been one of the ways middle-class families enjoy the benefits of economic growth, spend time together, and invest in experiences beyond basic necessities.
When a growing segment of the population can no longer afford even a modest trip, it raises broader questions about how widely economic gains are being shared.
National averages often obscure the divide.
Travel surveys may show overall spending increasing, but those figures frequently reflect stronger spending among higher-income households rather than broad participation across the population.
The result is an economy where two realities coexist.
One group is booking vacations.
The other is staying home.
Both experiences are real. Both are happening simultaneously.
And together they offer one of the clearest illustrations of how uneven the economic recovery has become.
For millions of Americans, the summer of 2026 will not be defined by where they traveled.
It will be defined by the trip they could no longer afford to take.
Wall Street — JBizNews Desk
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