Small businesses in U.S. tourist destinations are reporting increased activity this summer as more Americans opt for domestic travel over international trips. Higher costs for airfare and gasoline, coupled with major events such as the FIFA World Cup and the nation’s 250th birthday celebrations, appear to be encouraging vacationers to stay closer to home.

According to estimates from the motor club federation AAA, approximately 72.2 million Americans planned to travel at least 50 miles from home between June 27 and July 4, marking a slight increase of 0.5 percent compared to the previous year’s Independence Day period. However, this uptick is largely attributed to cruises, bus, and train travel, with no expected rise in the number of travelers driving or flying.

Tarik Dogru, an associate professor at Florida State University’s Dedman College of Hospitality, noted that this shift could benefit local economies. “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,” he said. A sustained trend of reduced international travel may also help narrow the U.S. travel and tourism trade deficit, which has persisted since the COVID-19 pandemic as Americans spend more abroad than foreign visitors in the U.S.

Individual travelers cited rising expenses as a primary reason for changing their vacation plans. Morgan Kain, a Baltimore teacher, described cutting down on trips this summer after multiple extended trips, including six weeks in Italy, last year. “Things are crazy expensive, from travel costs to food costs to gas,” Kain said, highlighting a common economic restraint among American families.

Despite higher fuel prices, AAA reported that 85 percent of travelers over the Independence Day week drove to their destinations, with road trips remaining generally more affordable than flying. Businesses in popular domestic destinations have observed this trend. For example, in Lake Tahoe, which straddles California and Nevada, local rental and recreation businesses have noted increased demand. Ron Williams, owner of Tahoe Sports, expressed optimism despite initial concerns over rising boat fuel costs, reporting a 10 percent increase in bookings compared with last year. Jerry Bindel, who manages rental properties in the area, also observed that some visitors are economizing by preparing meals at their accommodations rather than dining out.

In Asheville, North Carolina, small-business owners welcomed a rebound in tourism following significant damage from Hurricane Helene and flooding in 2024. Aubrey Anderson, owner of Zen Tubing, scaled back summer staff dramatically after the storms but has since rehired as reservations recovered. She noted a rise in regional day-trippers from neighboring states who often complement their tubing excursions with visits to local eateries, breweries, and shops. Jael Skeffington, CEO of chocolate maker French Broad Chocolate, reported increased interest in immersive experiences such as factory tours, which also boost retail sales.

Kansas City, Missouri, hosting World Cup matches, has seen a surge in visitors, particularly from Midwestern cities within driving distance. Keith Bradley, co-owner of the Made in KC retail chain, described pronounced spikes in customer traffic at locations throughout the city, driven by soccer fans attending games and related events. His stores’ World Cup merchandise sales have been strong, attracting visitors from suburbs as well as tourist areas. Similarly, Mollie Lothman, co-owner of McLain’s Bakery, attributed the city’s appeal partly to its comparatively affordable food and lodging options amid the tournament, making it an attractive destination for families on a budget.

Overall, the combination of economic pressures and major cultural events appears to be reshaping summer travel behaviors, benefiting local and regional businesses as Americans increasingly choose to explore destinations within driving distance.