Small business owners in U.S. tourist destinations have observed a shift in travel patterns this summer. Many Americans are opting for closer-to-home vacations rather than international trips. Instead of flying abroad, they are choosing road trips, day trips, and home cooking to save on costs. This trend coincides with increased airfares and gasoline prices, making vacations more expensive.
Several factors are influencing this behavior. The FIFA World Cup and the nation’s 250th birthday celebrations offer additional reasons to create memorable experiences without traveling far. According to AAA, 72.2 million Americans were expected to travel at least 50 miles from their homes between June 27 and the Sunday following July Fourth. This figure shows a slight 0.5% increase from last year’s travel period, driven mainly by cruises, buses, and trains rather than driving or flying.
Tarik Dogru, an associate professor at Florida State University, notes that fewer U.S. residents traveling long distances keep more vacation budgets local. This benefits small businesses such as local restaurants, attractions, and Airbnb hosts, catering to budget-conscious travelers. Reduced international travel also helps address the U.S. travel and tourism trade deficit, which has persisted since 2020.
“The current economic and tourism dynamics are likely to redirect spending toward small businesses,” Dogru said.
For families like Morgan Kain’s from Baltimore, financial concerns influence travel plans. Her family, which usually takes multiple trips each summer, is scaling back. Last year, they traveled Italy for six weeks, but this summer, they’ve opted for shorter trips within the U.S.
Despite rising gasoline prices, driving remains a popular choice for July Fourth week travel. AAA expected that 85% of travelers would choose to drive, as car trips are generally cheaper than flights. Businesses around Lake Tahoe, spanning California and Nevada, have noticed increased visitor numbers arriving by car. Ron Williams, owner of Tahoe Sports, has seen a 10% rise in bookings compared to the previous year despite economic concerns. Customers are likely choosing nearby destinations to save on travel costs.
Meanwhile, Jerry Bindel from Pyramid Global Hospitality reports a surge in demand for Lake Tahoe rental properties. The warm weather has shifted interest from skiing to hiking and boating. He observed more visitors using rental kitchens and barbecue grills, suggesting a preference for self-prepared meals over dining out.
In Asheville, North Carolina, local businesses have hoped for a tourism rebound since Hurricane Helene hit in 2024. Aubrey Anderson, owner of a river tubing outfitter, experienced a boost in reservations. Day-trippers from nearby states enjoy tubing on the French Broad River, followed by visits to local attractions. Jael Skeffington, CEO of French Broad Chocolate, notes increased demand for factory tours, with participants also purchasing chocolates and enjoying the on-site cafe.
The World Cup has further stimulated local tourism. Cities like Kansas City, Missouri, hosting World Cup matches have attracted soccer enthusiasts. Keith Bradley, co-owner of Made in KC, reports increased traffic and high demand for World Cup merchandise. The affordability of Kansas City as a host city is a significant draw for American tourists from other Midwestern cities.
Mollie Lothman, co-owner of McLain’s Bakery, emphasizes that Kansas City’s relative affordability compared to larger cities makes it an attractive destination. As a smaller market with lower costs, Kansas City offers families an economical opportunity to experience the World Cup.