Travel has become too expensive — people have found a replacement

Rising costs for flights and entertainment in the US, dubbed "Funflation," are forcing Americans to reallocate their budgets: instead of foreign trips, they are spending more on home hobbies, games, and leisure. Spending on hobbies has risen nearly 8% over the year, while fuel prices have more than doubled. The "living room economy" trend is also noticeable in Israel.

In the US, the rapid rise in prices for leisure and entertainment, dubbed "Funflation," is changing consumer habits. According to Bank of America data, Americans are reallocating their budgets: instead of expensive foreign trips, they are increasingly spending money on home hobbies. Spending on hobbies has grown nearly 8% over the year — more than twice as fast as the number of physical purchases. One of the main reasons has been the sharp increase in transportation costs: geopolitical tensions and the escalation of the war in the Middle East have led to fuel prices more than doubling over the year, while airfare has risen by about a quarter. Older millennials lead the ranking of spending on hobbies, spending more than twice as much as Generation Z. Young people are adapting through the Grannycore trend — knitting, sewing, baking, and board games — and have increased spending on video games by 20%. Sales at stores for sporting goods, hobby items, musical instruments, and books are growing almost twice as fast as the overall retail indicator. About 60% of household spending today goes to purchases through apps and digital platforms. The trend is also noticeable in Israel, where flight cancellations and rising ticket costs at Ben-Gurion Airport make vacations abroad more expensive.