Economic Shifts Influence Domestic Travel Preferences

Americans are opting for local vacations this summer, shifting from overseas travel to road trips and short excursions. This change is influenced by increased airfares and gasoline prices. While anecdotal, this trend has been noticed by small business owners in popular U.S. tourist spots.

Domestic Travel on the Rise

The 2023 summer travel season has seen a boost in domestic tourism, with the FIFA World Cup and the nation’s 250th anniversary celebrations prompting many to explore closer to home. AAA estimates 72.2 million Americans will travel over 50 miles from home between June 27 and early July. This represents a slight increase from last year’s travel period. However, most of this growth is due to people opting for cruises, buses, and trains, with no expected change in those driving or flying.

Tarik Dogru from Florida State University’s Dedman College of Hospitality highlights that fewer U.S. residents traveling abroad keeps more vacation spending local. This shift could help small businesses such as regional restaurants, local attractions, Airbnb hosts, and roadside enterprises catering to budget-conscious travelers.

Financial Constraints Affect Travel Plans

Many families are adjusting their travel plans due to financial considerations. Morgan Kain, a teacher from Baltimore, typically embarks on multiple trips over the summer. This year, her family is scaling back, opting for a few overnights and their usual Virginia lake house stay instead of extended travels.

Despite higher gasoline prices, driving remains a preferred mode of travel, with 85% of travelers during the Independence Day week expected to drive. In Lake Tahoe, businesses have seen more visitors driving in from West Coast cities. Ron Williams, owner of Tahoe Sports, reports a 10% rise in boat and Jet Ski rentals compared to last year, reflecting a strong drive-up market.

Local Businesses Benefit

Local businesses in Asheville, North Carolina, are witnessing a rebound in tourism despite previous destruction caused by Hurricane Helene and floods. Aubrey Anderson, owner of a tubing outfit, has hired additional staff as tourists return, including day-trippers from neighboring states.

The increased demand extends to other local attractions, such as French Broad Chocolate’s factory tours. Visitors often enjoy a café treat and purchase chocolates before departing, CEO Jael Skeffington notes.

World Cup’s Economic Impact

World Cup matches have brought soccer fans to cities like Kansas City, Missouri. This influx benefits local businesses like Made in KC, which has seen higher traffic and success with merchandise featuring team colors. Co-owner Keith Bradley observes that most visitors hail from nearby Midwestern cities.

McLain’s Bakery co-owner Mollie Lothman suggests that Kansas City’s affordability compared to larger host cities contributes to its appeal as a World Cup destination.