Despite inflation and cost pressures, U.S. consumers are cutting back on some areas to prioritize meaningful experiences.
Sixty percent of Americans plans to travel this summer, with nearly four in 10 building their plans around a specific experience, according to the Consumer Pulse 2026 Survey released by KPMG LLP, the U.S. audit, tax and advisory firm, and incorporating additional data from consumer intelligence firm CivicScience.
“We’re seeing a consumer who has done their homework. They know exactly what they want, whether that is a sporting event, concert or vacation, and they’re making trade-offs in their daily lives to make that a reality,” said Duleep Rodrigo, KPMG U.S. sector leader, consumer, retail and hospitality. “Even with rising gas prices, consumers are determined to keep their travel plans intact while demanding more value for every dollar they spend. When consumers are this deliberate, brands have less room to be vague. They must be explicit about what experience they’re offering and why it’s worth choosing.”
Asked how this impacts retail spending on apparel, Rodrigo told WWD, “When consumers commit to a specific experience, apparel spending becomes more intentional rather than discretionary. That said, we could see a modest lift in apparel spend as consumers refresh outfits tied to summer travel and other experiences this summer. What is different this summer is how targeted spending is. Instead of broad seasonal shopping, consumers are filling specific gaps in their wardrobe to support a trip, an event or a planned experience, while remaining highly focused on value.”
He said that value expectations remain high, which is why demand at off-price, discount and resale channels is likely to stay strong. “Consumers are willing to spend, but they expect a clear return on every dollar, whether that comes through price, quality or versatility,” Rodrigo said.
Simultaneously, apparel brands are working harder to stay culturally relevant, he said. “Partnerships with celebrities and influencers are playing a bigger role in driving brand momentum and helping consumers justify a purchase as part of a moment that feels current and meaningful,” Rodrigo said. “The brands that perform best will be the ones that balance value with relevance, making it easy for consumers to see how a product fits into a real-world experience rather than treating apparel as an impulse add-on,” Rodrigo said.
Rodrigo noted that a major driver this summer is large-scale sporting events. “We are also seeing strong pull around concerts and festivals, in addition to more traditional summer travel like beach vacations,” he said.
Of those consumers planning to travel, 38 percent are seeking out cheaper alternatives where possible. To save money, consumers are favoring shorter trips (one to three days) over weeklong stays. The most preferred travel mode — consumers chose their top two preferred travel modes for their next trip — is car (62 percent), followed by plane (51 percent), train (7 percent), boat (7 percent) and bus (4 percent). Consumers are also pulling back on spend by staying in the country — 69 percent plan to stay within the U.S., while 21 percent are planning international trips, down from 28 percent in 2025.
Meanwhile, some 27 percent of consumers use AI tools when planning trips, up from 14 percent two years ago. Hotels remain the most popular accommodation overall (55 percent), though higher-income households show greater preference for vacation rentals (32 percent), while lower-income travelers prioritize staying with friends or family (38 percent).
“When every dollar has to work harder, consumers are turning to AI to make sense of their options — and by the time they reach hotel or airline, the shortlist is already set,” said Braden Mark, KPMG U.S. partner, travel, leisure and hospitality. “The brands that recognize that are showing up earlier, shaping discovery rather than just competing at the moment of conversion.”
To accommodate summer plans, consumers are cutting back on food and beverage spending. Seventy-six percent of consumers consider eating at home more often to save money due to budget constraints. Thirty-one percent of consumers rarely or never go out to eat dinner or order take out. When consumers dine out, they’re prioritizing quick service restaurants (25 percent), rather than casual or fine dining. Fifty-four percent of consumers expect to spend more on groceries than they did last year.
The survey showed that wellness remains important to consumers, but spending in this category reflects the same selective mindset, with a heavy focus on everyday essentials.
Over the last six months, supplements and vitamins (25 percent) saw the largest increase in purchases, followed by skin care (16 percent) and oral care (15 percent).
Consumers are prioritizing free, self-guided workouts, with 92 percent of respondents saying they do not pay for workout classes. One the past three months, at-home consumption of alcohol has decreased by 36 percent, with the reduction being more pronounced among Gen X (41 percent) and Baby Boomers-plus (42 percent).
Respondents say they plan to drink more water (49 percent) and eat healthier (46 percent), compared to last year.
While physical fitness (58 percent) and preventive care (51 percent) are top priorities for Baby Boomers plus, one in two Gen Z and Millennial respondents say mental health is a top health and wellness priority.
“Wellness spending is stratified, with younger generations prioritizing mental health and older generations doubling down on physical fitness,” said Julia Wilson, KPMG U.S. principal, consumer and retail strategy. “What cuts across every age group is a shift toward everyday essentials that feel affordable and impactful. Brands that understand where they fit in that priority set will be better positioned to hold their place in the basket.”
The report integrates two survey periods: a KPMG survey of 1,544 consumers across the U.S. from Feb. 21 to March 18 and a CivicScience survey of 868 to 3,432 respondents from March 1 through March 23.
