As economic uncertainty and rising airfare reshape the travel landscape, Americans aren’t canceling their vacations — they’re getting savvier with them.
“We’re not seeing people give up on travel,” says Jesse Neugarten, founder and CEO of Dollar Flight Club, a subscription service that alerts members to cheap fares and flight deals from their home airports. “They’re just adjusting. Instead of spending $4,000 on a week in Italy, they’re finding comparable experiences in places where their dollar stretches further.”
What is trade-down travel?
While popular destinations like Paris, Rome, and Tokyo remain aspirational, travelers are increasingly embracing what travel industry pros call “trade-down travel” — swapping bucket-list destinations for more affordable, less hyped, but equally rewarding alternatives.
The trend isn’t about sacrificing quality, it’s about maximizing value. “It’s not that people don’t want to visit Europe anymore,” Neugarten says. “It’s just that Europe during the summer has become really expensive and crowded. So people are finding smarter swaps that offer the same vibe at half the cost.”
Destination swaps that’ll save you money
Airfare to destinations across Europe, especially during peak summer months, has risen sharply over the last year, explains Neugarten. A perfect storm of high jet fuel prices, pent-up demand following the pandemic, staffing shortages, and limited seat capacity has driven airfare in general to near-record highs.
At the same time, regions like Southeast Asia and Latin America are becoming increasingly accessible due to the expansion of flight routes and competitive pricing to attract more tourists. According to Dollar Flight Club data, Southeast Asia bookings are up 31 percent since last year, flights to Latin America (especially Mexico and Colombia) are up 22 percent, and summer trips to Europe are down 18 percent from last year.
Globetrotters are prioritizing places with strong cultural appeal, great food, and postcard-worthy backdrops, without the premium price tag. Here are some examples using prices provided by Dollar Flight Club:
- Instead of Paris, try Dublin (flights from $507) or Barcelona ($548) for similar European charm but with more availability and fewer crowds.
- Instead of Tokyo, go for Bangkok ($620) or Mexico City, where the street food, museums, and boutique hotels deliver huge value.
- Instead of Honolulu, book Cartagena or Belize City, which are both tropical and culturally rich, and now have under $400 fares and more direct routes than ever.
Travelers are also swapping out beachy hotspots like Mykonos for Tamarindo in Costa Rica, or the Amalfi Coast for laid-back coastal towns in Panama, where they can enjoy sun, surf, and culture without the luxury markup. “A lot of people went to Greece or Italy last year,” says Neugarten. “This year, they’re turning to places like Thailand or Vietnam instead, where your dollar goes a lot further than it would in Europe.”
Still dreaming of Paris?
If your heart’s set on strolling the Champs-Élysées or snapping that perfect Eiffel Tower selfie, don’t be discouraged. The key is to time your trip wisely. Travelers willing to be flexible with timing can still enjoy popular destinations without the sticker shock. “Shoulder seasons, like May or September, are the sweet spot for Europe,” says Neugarten. “The weather’s still great, and you’ll avoid the tourist rush — plus, you’ll save a ton.”
