Small business owners in U.S. tourist destinations report that more Americans are opting for local vacations instead of traveling abroad this summer, largely due to high airfares and gas prices. The AAA estimated a slight increase in domestic travel compared to last year, with many families choosing day trips and home-cooked meals to save on costs. Cities hosting the FIFA World Cup, like Kansas City, are seeing increased tourism as visitors enjoy local experiences, leading to a potential boost for regional small businesses. The trend indicates a redirection of tourists' spending, benefitting local businesses and cool weather activities, while also possibly mitigating the U.S. travel trade deficit.

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As higher airfares and gas prices make vacations ‘crazy expensive,’ small business owners say Americans are staying closer to home this summer

By Mae Anderson Mae Anderson and The Associated Press The Associated Press

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By Mae Anderson Mae Anderson and The Associated Press The Associated Press

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July 5, 2026, 10:24 AM ET

Made in Kansas City owner Keith Bradley has seen an influx of customers for his business as soccer fans have flocked to the city which is hosting FIFA World Cup soccer games Monday, June 29, 2026, in Kansas City, Mo.

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Small business owners in U.S. tourist destinations say they’re seeing more Americans sticking closer to home this summer, trading overseas travel for road trips, choosing daylong sojourns over extended beach stays, and cooking instead of eating out while on vacation to save money.

Vacationers are taking trips within driving distance

Despite gasoline costing more than it did a year ago, 85% of Independence Day week travelers were expected to drive to their destinations, AAA said, noting that car trips still are cheaper than flights for the most part.

Around Lake Tahoe, which straddles California and Nevada, several businesses reported spotting more visitors driving in from cities along the West Coast.

Ron Williams, who owns Tahoe Sports, said he worried at the beginning of the season that customers might not show up to rent boats and Jet Skis due to economic concerns. Like the gasoline that powers cars, the price of boat fuel went up during the Iran war.

But Williams so far is “pleasantly surprised with how well the business is doing across the board.” His future bookings are 10% higher compared to the same time last year, he said.

“I think people are probably sticking close to home, and being in Lake Tahoe, we have such a huge drive-up market,” Williams said.

Increased demand for the three Lake Tahoe area rental properties that Jerry Bindel manages for Pyramid Global Hospitality also came as a relief. Ski season bookings petered out along with the snow during an unusually warm winter, but “we just saw that flip” with the arrival of hiking and boating weather, he said.

Bindel, an area general director for the property management company, said he spotted a possible sign of Tahoe visitors watching their spending: more of them skipping restaurants and using the kitchens in their rental units or outdoor barbecue grills to prepare their own food.

“We’re seeing a lot of additional use on those items this summer,” he said.

Locals still want to have memorable summer experiences

In Asheville, North Carolina, small business owners have hoped tourism would rebound since Hurricane Helene and flooding from days of torrential rain caused widespread destruction to the city’s landscape, buildings and infrastructure in September 2024.

Aubrey Anderson, who owns a river tubing outfitter in Asheville, reduced her summer staff from 100 people to 25 after Helene. After reservations picked up earlier this year and she noticed “a lot new people coming into town,” Anderson felt encouraged enough to hire 50 workers for Zen Tubing’s current season.

The unfamiliar faces include day-trippers driving in from South Carolina, Tennessee and other parts of North Carolina to spend several hours floating down the French Broad River for around $30 per person, Anderson said. After tubing, customers from around the region often grab a meal, stop at a brewery, shop or visit other local attractions before heading home, which is “a win for Asheville as a whole,” she said.

“We’re definitely seeing a lot of locals, so to speak,” Anderson said. “People are maybe skipping the long drive to the beach this year, and they’re kind of doing just something close by so that they can save a little money and still enjoy a family outing.”

Factory tours offered by French Broad Chocolate have surged this summer, according to Jael Skeffington, the Asheville chocolate maker’s CEO and co-founder. Tour-takers often stop in the on-site cafe for ice cream or coffee and buy a box of chocolate bars or bonbons before they leave, she said.

“So it’s good for business, but it also seems to be what people are looking for is something to do, not just something to eat — something to experience.” Skeffington said.

Cities are getting a World Cup boost

Soccer enthusiasts have poured into Kansas City, Missouri, just like other North American cities hosting World Cup matches.

Made in KC, a chain of four cafes and 11 shops that sells locally made sauces, Kansas City-themed gifts and T-shirts for fans of the city’s professional sports teams, has gotten “really noticeable spikes of traffic” at all its locations during the tournament, co-owner Keith Bradley said. World Cup-related merchandise, including $40 hats featuring the team colors of this year’s competitors, have been a big hit, he said.

American tourists from other Midwestern cities — Des Moines and Omaha both are within a three-hour drive from Kansas City — seem to outnumber U.S. visitors from farther away, Bradley noted.

“We have a couple locations that are in tourist parts of Kansas City. … But then we also have little shops that are just in suburban neighborhoods in Kansas City, and those have also seen World Cup traffic of people going to watch parties, people coming in town to go to the games, and then tourists just exploring Kansas City on their own.”

Mollie Lothman, co-owner of McLain’s Bakery, a family-owned cafe with five locations, said she thinks the cost of food and lodging in Kansas City compared to bigger or better known host cities has helped.

“We’re one of the smaller markets who got the World Cup in Kansas City, but we’re also probably one of least expensive markets, in terms of family budgeting, to try to come and experience the World Cup,” Lothman said. “So I think that’s been a huge draw for people.”

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By Mae Anderson

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