Key facts
- Small businesses in U.S. tourist destinations are reporting a strong summer due to increased domestic travel.
- Higher costs for airfare and gasoline are leading Americans to choose shorter trips and road trips over international travel.
- This shift in travel patterns is benefiting local businesses, including restaurants, rental properties, and attractions.
- AAA projects that 72.2 million Americans will travel at least 50 miles from home this summer, with driving remaining a popular mode of transport.
- The trend could help reduce the U.S. travel and tourism trade deficit.
Small business owners in U.S. tourist destinations are reporting a positive summer season, attributing the boost to Americans choosing to travel closer to home. Factors such as higher airfares and gasoline prices are encouraging a shift from international and long-distance domestic travel to road trips and shorter excursions.
According to AAA, 72.2 million Americans are expected to travel at least 50 miles from home this summer, with a slight increase over last year, largely driven by non-driving modes of transport. However, driving remains a cost-effective option, with 85% of Independence Day travelers expected to drive.
Tarik Dogru, an associate professor at Florida State University, suggests that this redirection of spending toward local businesses could benefit regional restaurants, attractions, and roadside businesses. This trend may also help reduce the U.S. travel and tourism trade deficit that has persisted since the COVID-19 pandemic.
Anecdotal evidence supports this shift. In Lake Tahoe, businesses like Tahoe Sports have seen a 10% increase in future bookings, with owners noting that visitors are utilizing rental property kitchens more frequently. Similarly, in Asheville, North Carolina, businesses like Zen Tubing are experiencing a rebound, with day-trippers from nearby states opting for shorter, local outings.
Some families, like Morgan Kain's, are scaling back their usual summer travel plans due to the rising costs of travel, food, and gas, opting for fewer trips and staying closer to home.