The Summer of Experiences

Resilient consumers are managing uncertainty by adjusting budgets and choices to maintain their travel plans in 2026.

Our annual summer 2026 consumer survey seeks to accurately represent US demographics with a sample of 1,544 respondents. The survey was fielded between February 27 and March 18, 2026.

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KPMG consumer pulse summer 2026 infographic

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KPMG consumer pulse summer 2026 data

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Cautious, but not canceling: Consumers are making the shift

Consumers are approaching the summer with familiar concerns and caution, but also a growing sense of resilience. Everyday economic pressures remain high, with 93 percent of respondents to a new KPMG LLP consumer survey reporting an increased cost of living over the past year. 63 percent expect a recession, down from 70% last year, as shoppers fine-tune their buying decisions rather than retreating entirely.

Household incomes are showing signs of stabilizing, but the relief is uneven. Higher-income earners are driving an outsized share of the economy and absorbing price hikes, while middle- and lower-income households are making more trade-offs to stretch their dollars. Planned discretionary spending is on track for continued year-over-year declines amid the rising cost of essentials.

Despite these pressures, consumers are staking a claim to travel and experiences as an essential part of life—and adjusting their budgets to make it happen. Sixty percent plan to travel this summer, even if that means booking shorter trips, trading down, and finding new ways (including AI tools) to optimize travel costs.

Travel and experiences remain a priority

Despite a planned 7 percent reduction in overall travel spending, most consumers view summer experiences as nearly essential. Sixty percent of respondents plan to take a trip this summer, demonstrating that demand remains resilient year-over-year. High-income households anchor this trend, with more than 70 percent of those earning over $100,000 planning to pack their bags.

To make the math work, travel shoppers are adjusting how they get away. Thirty-eight percent are switching to more affordable alternatives, with a notable effect on lodging: While hotels remain the top choice for 55 percent of travelers, their dominance slipped for a fourth straight year. Meanwhile, 34 percent of travelers are saving money by staying with family and friends, growing for the fourth straight year. Wealthier consumers show a stronger preference for vacation rentals and luxury resorts compared to households below $100,000.

An “experience economy” is taking hold. Among those more likely to travel, 54 percent are seeking a specific experience or event. To optimize these trips, they’re embracing new tools, including Generative AI for trip planning—with usage nearly doubling in two years (from 14 percent to 27 percent).

Overall, 93 percent of consumers report rising costs, consistent with last year’s survey. But the magnitude of that increase has shifted: More than 7 in 10 say their costs jumped by over 10 percent, compared to 3 in 10 last year. Expectations for relief are also moderating this year, with fewer respondents (29 percent vs. 33 percent) believing inflation will taper off soon.

Household finances look stronger this year. While 40 percent of consumers report an income increase (on par with last year’s 42 percent), the share of those reporting an income decrease this year was just 20 percent—a strong improvement over last year’s 39 percent decrease. Still, signs of concern remain as consumers adjust to financial uncertainty: More than half (52 percent) are tracking expenses more carefully, 6 in 10 have a recession plan, and 31 percent have reduced spending on food or struggled to cover groceries.

Essentials climb as discretionary and dining take a hit

Sustained cost pressures directly impact how budgets are allocated. Consumers expect to spend more on essential categories, driven primarily by groceries (54 percent of respondents) and automotive needs (44 percent). To offset these rising costs, planned discretionary spending is on track to continue its two-year decline, with reductions forecast across almost every non-essential category.

This trade-off extends to the dinner table. Sixty-seven percent of consumers are eating at home more often than dining out. For those cooking at home more frequently, 76 percent cite budget constraints as the primary reason. When consumers do choose to dine out, they are prioritizing value: 25 percent say they are visiting quick-service or fast-food restaurants more often, shifting away from casual and fine dining options.

Shifting consumption to prioritize wellness

Consumers are changing how they approach their health and well-being, most notably in the beverage aisle, with 37 percent of respondents actively reducing their alcohol intake for health reasons. Younger cohorts are driving this trend, with roughly half of Gen Z (54 percent) and Millennials (49 percent) cutting back.

Broader lifestyle goals are also a core focus. When asked to identify their top wellness priorities, half of consumers point to physical fitness, followed by mental health (39 percent) and a healthy diet (37 percent). To support these routines, shoppers are also boosting their purchases of supplements and vitamins, which jumped 25 percent over the past six months.

The “value” strategy

The consumer story heading into summer 2026 is one of calculated compromise. Shoppers refuse to sideline their travel plans, funding them instead through relentless discipline. By carefully managing their everyday needs, consumers can go big on the unforgettable—whether that means taking a long-awaited family vacation or securing tickets for the World Cup matches across North America.

For retailers and brands, the mandate is clear: Broad strokes won’t work in an uncertain economy. Winning this season requires offering undeniable value on the essentials while delivering memorable moments for the experiences consumers refuse to skip.

KPMG helps Consumer, Retail & Hospitality organizations respond to shifting market dynamics with speed, clarity, and confidence. With deep sector expertise, KPMG brings connected capabilities across strategy, operations, and technology to help clients:

Drive top-line growth in a fast-changing market through targeted customer engagement and dynamic pricing strategies

Protect margins through smarter sourcing and supply chain strategies

Navigate an increasingly complex global tax and tariff landscape

Manage risk, ensure compliance, and build stakeholder trust

Across business functions, KPMG delivers insights and outcomes that move with the market—and make the difference.

We offer short- and long-term strategies to help minimize the impact of common challenges facing today’s consumer products, retail and hospitality businesses. These include a constantly changing environment in consumer purchasing behavior, digital disruption, rising costs, increased speed to market, and emerging competition.

Duleep Rodrigo

US & Americas Sector Leader, Consumer, Retail & Hospitality, KPMG LLP

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Julia Wilson

Principal, Advisory Strategy, KPMG LLP

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Braden Mark

Partner, US Deal Advisory & Strategy, Travel, Leisure, & Hospitality Leader, KPMG US

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Duleep Rodrigo

US & Americas Sector Leader, Consumer, Retail & Hospitality, KPMG LLP

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Julia Wilson

Principal, Advisory Strategy, KPMG LLP

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Braden Mark

Partner, US Deal Advisory & Strategy, Travel, Leisure, & Hospitality Leader, KPMG US

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The Summer of Experiences

About the survey

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Cautious, but not canceling: Consumers are making the shift

Travel and experiences remain a priority

Stabilizing incomes collide with higher costs

Essentials climb as discretionary and dining take a hit

The “value” strategy

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