Japan Records Highest Summer Travel Budgets In History Reflecting Uneven Recovery With Increased Spending By Some And Cautious Saving By Others

Wednesday, July 16, 2025

Japan’s highest-ever summer travel budgets Japan posted record-high summer travel budgets this year, signaling an uneven rebound in consumer confidence. As some people open their wallets wider — earning higher wages and traveling after the pandemic — others are holding back, their spending habits changing given inflation that’s far from over. This sharp difference in outlooks reveals the paradoxical way the country is trying to rebound from previous economic upheavals.

Japanese travelers plan to open their wallets wider than they have in the past for their summer vacations, with the average budget for summer spending eclipsing the 100,000 yen line for the first time. A new survey reveals that travelers intend to spend an average of 104,901 yen (about \$670) on vacations for 2025, pointing to higher pay at major companies and a ravenous hunger to travel. This is the fourth continuous year of increased spending for the summer holiday.

It illuminates a stark divide in post-pandemic consumer behavior and underscores a large trend that could shape a future where the rich can afford to not show up as everyone else is required to. Though many people expect to spend more because of raises and the desire to travel, about as many said they planned to spend less as a result of higher prices and financial instability.

More than 1,100 respondents ages 20 to 50 took the nationwide survey, which was conducted online in June. – 18.5% are planning to spend more on the summer break, mostly because of travel plans. – The majority of people will be on vacation during the summer school break. By contrast, 18.3 percent said they planned to cut back their spending this year, citing higher inflation and worrying about their financial future.

The average holiday budget is now higher than the previous peak set in 2015, when holiday makers planned to spend a smidgen less than 90,000 yen. The surge in 2025 spending reflects the aftereffects of rising wages at giant corporations, the rebound of domestic travel and renewed interest in leisure experiences.

Journeys are still the main driver of more expensive gifts. Of those planning to spend more, almost three-fourths said they planned to travel. More than u one-quarter of these respondents said they have more money to spend as a result of wage increases, especially among large corporates’ staff. There are almost twice as many people who cite higher income as a reason, as there were the year before, reflecting the influence of pay raises across entire companies.

Even so, people are still struggling financially. Among those cutting back on spending this holiday, 62% said the higher cost of living was a factor, the respondents said. With inflation, spurred by higher energy, food, and home prices, eroding household buying power. But an additional 24.9 percent said they intend to save more money this summer out of uncertainty about the future, reflecting increasing financial caution among middle-income households.

Domestic travel is rebounding robustly. The average budget among travelers aiming to take domestic trips including those who will travel within Japan came to 151,938 yen, higher by 10.6% compared to the previous year. The soaring numbers are not just the result of booming demand, but of soaring hotel and accommodation prices. With more foreign tourists visiting Japan, the prices of accommodations in big cities and scenic areas have risen, making domestic trips increasingly expensive for residents.

International travel is a different story. The average budget for those traveling overseas was down 13.3 percent to 380,051 yen. Under the shadow of a weak yen, foreign visitors have changed the way they spend money. Some 40 percent of the travelers who answered who are planning trips abroad said they would pack their own food and drinks to save money. Increased prices for food, services and entertainment in overseas destinations has meant people are finding more creative ways to save money while still having an enjoyable trip.

The findings also underscore widening differences in opinions toward the economy. Workers at top companies are enjoying big pay raises and therefore are more open to spending on dining out and traveling. On the other hand, employees at small and mid-size companies where no such pay gains have been made are likely to be holding on to purse strings and cutting back on non-essentials.

While the average vacation budget is at a record, the picture as a whole is more mixed. Some Japanese are thrilled to be spending more, and going farther, than at any time in living memory; others are making hard financial decisions. Inflation remains a major deterrent to spending, even for people who would want to travel otherwise.

The survey also indicated changes in consumer habits. These days, lots of people care more about getting a bargain than a luxury vacation. Even big spenders are taking shorter trips, staying at more affordable accommodations, and booking early to lock in lower prices. For domestic travelers, this means shifting travel plans to avoid high peak-season rates, while for international travelers, it might mean altering itineraries, as well as packing light to reduce costs overseas.

Tourism in Japan is poised for a summer of uneven momentum. Higher wages at big companies, which resume the recovery of leisure travel, and input new demand for both domestic and foreign tourism on one way. On the other hand, inflation and currency weakness are destroying consumer confidence, particularly among those with fixed incomes or modest wage growth.

An uptick in spending on summer holidays paints a wider picture of the state of the economy. It is a measure not only of people’s perception of their personal finances, but also of all the external factors that affect the household budget, such as inflation and exchange rates. The result is a season of juxtapositions, where some households are planning ample getaways, while others are approaching summer cautiously.

Japan logged its highest-ever summer travel budgets in a record that reflects an uneven economic recovery, with some uplifted by higher wages and post-pandemic enthusiasm for travel but others holding back because of inflation fears.

As summer kicks off, Japan sits at a crossroads between a fresh enthusiasm for traveling and a more enduring economic caution. The results of the survey suggest that, while many are craving time away to go out and explore, they do it with a watchful eye on their wallets. For the travel industry, that has meant bracing for a season of high expectations alongside logistical compromises.