Americans Plan Slightly More Domestic Travel This July Despite Higher Costs

Small business owners in U.S. tourist destinations report more Americans choosing domestic road trips over overseas travel this summer. Travelers are also opting for daylong outings instead of extended beach stays and cooking meals rather than dining out to control expenses.

Higher airfares and gasoline prices have increased the cost of vacations. The FIFA World Cup and the nation’s 250th anniversary celebrations have provided added reasons for some residents to keep summer plans closer to home. AAA estimated that 72.2 million Americans would travel at least 50 miles from home between June 27 and July 5.

The total is 0.5 percent higher than last year’s July Fourth period, though the increase stems almost entirely from cruises, buses and trains. The number of people driving or flying is expected to remain unchanged from 2025. Eighty-five percent of Independence Day week travelers were forecast to drive.

Gasoline prices are higher than a year earlier. Around Lake Tahoe, Ron Williams, owner of Tahoe Sports, said future bookings are 10 percent higher than the same time last year. He noted the area’s large drive-up market from West Coast cities.

Jerry Bindel, who manages three rental properties for Pyramid Global Hospitality near Lake Tahoe, reported increased demand this summer after a weak ski season. He observed more guests using rental kitchens and grills instead of restaurants. In Asheville, North Carolina, Aubrey Anderson, owner of Zen Tubing, reduced staff from 100 to 25 after Hurricane Helene in September 2024.

Reservations later recovered, allowing her to hire 50 workers for the current season. The company charges about $30 per person for several hours on the French Broad River. Factory tours at French Broad Chocolate in Asheville have increased this summer, according to CEO Jael Skeffington.