U.S. — Small businesses in U.S. tourist destinations report an increase in domestic travelers opting for closer-to-home vacations this summer. Travelers are shifting from overseas travel to road trips, choosing daylong excursions, and cooking at home instead of dining out to manage costs.

AAA estimated that 72.2 million Americans would travel at least 50 miles from home between June 27, 2026, and July 5, 2026. This projection represents a 0.5% increase compared to the July Fourth travel period in 2025. The forecasted rise in travel is almost entirely due to people utilizing cruises, buses, and trains, with AAA expecting no change in the number of Americans driving or flying to destinations compared to the previous year. Higher airfares and gasoline prices have contributed to increased vacation expenses.

Tarik Dogru, an associate professor at Florida State University's Dedman College of Hospitality, stated that economic and tourism dynamics are likely to redirect spending toward small businesses. "The current economic and tourism dynamics are likely to redirect spending toward small businesses, such as regional restaurants, local attractions, Airbnb hosts, and roadside businesses along drive routes that serve budget-conscious and close-to-home travel," Dogru said.

Ron Williams, owner of Tahoe Sports, has observed this trend. "I think people are probably sticking close to home, and being in Lake Tahoe, we have such a huge drive-up market," Williams said. He noted his future bookings are 10% higher compared to the same period last year. Ski season bookings at Lake Tahoe properties had decreased during an unusually warm winter.

Morgan Kain, a teacher in Baltimore, noted the impact of rising costs on her family's travel plans. Her family typically takes multiple trips annually, including a weeklong stay at a Virginia lake house, and traveled around Italy for six weeks in 2025. "Things are crazy expensive, from travel costs to food costs to gas," Kain said. "This summer, we're still doing a couple overnights and the lake house, but nothing else."

Why It Matters

The United States has run a travel and tourism trade deficit since 2020, with Americans spending more on foreign travel than international visitors spent in the U.S. each year. The observed shift towards domestic travel reflects responses to increased travel costs, including higher airfares and gasoline prices.