Costlier trips steer summer travelers toward nearby getaways

Small businesses in several U.S. vacation markets say more Americans are keeping summer travel close to home as airfare, fuel and food costs squeeze trip budgets. The Associated Press reported that some travelers are replacing overseas or long-distance vacations with road trips, day outings and rental-home meals.

The shift is anecdotal, AP reported, but operators in places such as Lake Tahoe, Asheville and Kansas City say they are seeing signs of it in bookings, foot traffic and customer habits. The FIFA World Cup and events tied to the nation’s 250th birthday have also given some travelers reasons to spend vacation money inside the United States, according to AP.

AAA estimated that 72.2 million Americans would travel at least 50 miles from home from June 27 through the July Fourth holiday period, according to AP. That would be up 0.5% from last year, though AAA said the increase was expected to come mostly from cruises, buses and trains, with driving and flying roughly flat.

Road trips remain a fallback

AAA said 85% of Independence Day week travelers were expected to drive, AP reported, even though gasoline cost more than a year earlier. The group said car travel generally remained cheaper than flying.

In the Lake Tahoe area, Tahoe Sports owner Ron Williams told AP that he had been concerned customers might pull back from boat and Jet Ski rentals because of the economy and higher boat fuel costs. Instead, he said future bookings were running 10% ahead of the same period last year, helped by the region’s large drive-in customer base.

Jerry Bindel, an area general director for Pyramid Global Hospitality, told AP that demand improved for three Lake Tahoe-area rental properties after a weak ski season tied to an unusually warm winter. He also said guests appeared more likely to use rental kitchens and outdoor grills rather than eat out.

Tarik Dogru, an associate professor at Florida State University’s Dedman College of Hospitality, told AP that less foreign and cross-country travel by U.S. residents could send more spending to regional restaurants, roadside businesses, local attractions and short-term rental hosts. The National Travel and Tourism Office has said Americans have spent more abroad on travel each year since 2020 than international visitors spent on travel-related goods and services in the United States, according to AP.

Day trips help some local operators

In Asheville, North Carolina, businesses are still trying to recover tourism lost after Hurricane Helene and flooding damaged the city in September 2024, AP reported. Aubrey Anderson, owner of Zen Tubing, told AP she cut summer staffing from 100 workers to 25 after the storm, then hired 50 for this season after reservations improved.

Anderson said customers have included day-trippers from South Carolina, Tennessee and other parts of North Carolina who pay about $30 per person to float on the French Broad River. She told AP that many then eat, visit breweries, shop or stop at other local attractions before heading home.

French Broad Chocolate CEO and co-founder Jael Skeffington told AP that factory tours have risen this summer. She said visitors often add cafe purchases or buy chocolate before leaving, suggesting demand for experiences as well as food.

World Cup lifts Kansas City shops

In Kansas City, Missouri, AP reported that World Cup matches have brought soccer fans into local businesses. Keith Bradley, co-owner of Made in KC, said the company’s four cafes and 11 shops have seen noticeable increases in traffic, including demand for tournament-related merchandise.

Bradley told AP that many U.S. visitors appeared to be coming from nearby Midwestern cities such as Des Moines and Omaha. Mollie Lothman, co-owner of McLain’s Bakery, told AP that Kansas City’s relatively lower food and lodging costs compared with larger host cities may be helping families choose it for World Cup travel.

This story draws on original reporting from Fortune.