Businesses located in tourist destinations like Las Vegas and Hawaii could be in for an adventure this summer – and not in a good way. With gas prices surging past $4 per gallon in many states and the U.S. engaged in a heated conflict with Iran, many Americans are uneasy about traveling.
Cross-country trips to Disney World or Yellowstone Park suddenly seem out of the question for middle-income consumers. This could be the summer of the “staycation,” according to travel experts.
“This increase in the price of gas is certainly going to ensure that Americans stay local, stay shorter, or spend less,” said Paul Whitten, the CEO of Nashville Adventures.
“It’s going to be a belt-tightening year,” Whitten told The Food Institute.
“I’m hearing more and more from visitors that (feel) they can splurge for one family dinner on a vacation; I never used to hear that,” the CEO added.
“With things getting more expensive, the itinerary has to mean something significant,” said Amanda Persi, the founder of The Getaway Co.
There was a 20% increase, year-over-year, in domestic trip costs in April and May this year, according to travel insurance marketplace Squaremouth. As a result, many travel experts expect Americans to take fewer trips this summer.
This June, July, and August, many consumers will be more intentional about travel.
“Rather than booking a generic vacation, we’ve seen today’s traveler is willing to invest in experiences tied to a specific passion on purpose, like food, culture, wellness, or a destination they’ve dreamed about for years,” Persi explained.
Many consumers are making tradeoffs amid a tighter economy, opting to dine out less in their hometown, pull back on smaller discretionary purchases, or “trim spending around the edges,” Persi said, to protect their budget for summer trips.
“Travel remains deeply emotionally valuable to many Americans; they’re just becoming more deliberate about where their dollars go and what they expect in return,” Persi said.
The Newest Travel Term: ‘Micro-cation’
If prices at the pump continue to climb, some travel experts fear the traditional American summer road trip could be in peril. The multistate trek to Wally World, made famous in 1983’s National Lampoon’s Vacation, truly seems like a work of fiction right now.
Historically, consumers travel less in times of uncertainty, noted Steve Schwab, CEO of Casago, a vacation rental and property management business.
“A trend we’re seeing a lot of right now are ‘micro-cations,’ – short vacations or trips, often just a weekend long. I think we’ll see a lot of that this summer,” Schwab said.
Flight Plans May Never Get off the Ground
The next challenge on the horizon for tourist destinations could come if rising fuel prices start to impact the price of flights.
“If flights start to increase more, we could see more families making a road trip closer to vacation spots,” said Steve Griswold, owner of Pixie Vacations, a travel agency.
Many travel experts remain confident that domestic air travel will hold reasonably steady, especially among U.S. business travelers. The conflict in the Middle East could complicate international travel, however.
“The war in Iran has caused American travelers to be a lot more anxious about traveling abroad. This means many high-income households are expected to forego international trips,” said Javier Morales, an airline industry expert who serves as a revenue management analyst for JSX.
The European Travel Outlook
Data regarding travel such as road trips have illustrated a resilience among European consumers in recent years. For instance, the continent saw just a 15% reduction in road trips during the 2022 energy crisis.
Europeans often shift to regional travel destinations during difficult financial periods, explained Flavia Voican, a travel analyst and founder of 360businesstour.com. Like Americans, many Europeans are rarely willing to give up summer trips entirely, Voican added.
In 2026, consumers the world over will simply be conscious of their travel budget, the travel expert said, noting “cultural importance trumps cost concerns for many.”
The Food Institute Podcast
In this episode of Food for Thought Leadership, Food Institute Chief Content Officer Kelly Beaton steps in as guest host to interview Fransmart CEO Dan Rowe on the evolving restaurant labor market. Rowe challenges operators to view labor not as a cost to minimize but as a strategic investment, noting that the most successful brands are those that “staff for the sales they want” and prioritize retention, engagement, and culture amid ongoing workforce constraints.
