A mix of geopolitical tensions, rising fuel costs and an uncertain economic climate may be pushing many American travelers toward closer-to-home destinations.
Data from Internova Travel Group's Global Travel Collection (GTC) shows domestic U.S. hotel and air bookings growing steadily through the first quarter of 2026, outpacing international growth by a significant margin.
Within the first few weeks of March, immediately following the eruption of the Iran war on Feb. 28, GTC saw domestic booking volume jump 17%. For the full month of March, domestic hotel bookings were up 11% year over year, and domestic air was up 8%.
Looking further ahead, domestic hotel bookings for summer are already pacing 23% ahead of where they stood at this point last year, according to GTC president Angie Licea.
"It's been a while since we've seen that sort of leap in domestic growth," said Licea. "Especially with the fuel costs right now, people are staying a little bit closer to home, but they're still getting away, and they're still spending money, which is great for our industry."
Angie Licea
Among the markets benefiting most from the domestic demand boost is Las Vegas. In March, GTC recorded 76% year-over-year sales growth and 59% bookings growth in Vegas, which Licea said was particularly notable given the city's dip in tourism last year. Licea pointed to the rollout of inclusive offers at some Las Vegas resorts this spring and summer as helping to drive interest, particularly among clients looking to maximize value.
Other domestic markets like Nashville, San Diego and West Palm Beach, Fla., are also showing growth near or above 50% in both booking transactions and sales, according to GTC data.
Data from the research firm YouGov's March survey points in a similar direction. Polling of roughly 2,000 to 3,000 U.S. adults found that among those planning an international vacation in the next 12 months, 28% cited safety as a barrier to travel, up three percentage points month over month and five points year over year.
When the group was asked which destinations they were considering, interest dropped for several markets in the Middle East and North Africa as well as for some Europe destinations, while markets like California and New York saw increases.
"Even among people who have told us they plan on going on an international vacation, there is some reconsideration happening when we ask them specifically about destinations," said Bilal Akbar, senior manager of data products for travel clients at YouGov.
Some travel advisors are already repositioning in response. Kimberly Clement, founder of Minnesota-based Travel by Destiny, launched a campaign she's calling "See America Simply," promoting domestic tour options via social media channels, including YouTube. Options include music-focused bus tours to Nashville and Memphis and a canyons-focused bus itinerary running from Phoenix to Las Vegas, with these tours generally running seven to eight days at around $3,500 per person.
"With the chaos in the world today and the cost of airfare, I think people are going to look domestically," said Clement.
Licea, meanwhile, said that the two-week U.S.-Iran ceasefire announced on April 8 was welcome news.
"Hopefully the ceasefire holds and we come to resolution," she said. "And if people were willing to spend money during the conflict -- and what they did was divert their money and still go places -- what will they be willing to do when the conflict has ended? I think it's going to be interesting to see what happens over the next couple of weeks."
Budget-conscious Americans
For U.S. hotels, increased domestic demand may offer upside, though price sensitivity could temper that optimism.
A March survey of roughly 3,000 loyalty members by Select Registry, a collection of more than 250 independent B&Bs, inns and boutique hotels across the U.S., found that while regional travel is top of mind, many travelers are keeping a close eye on what they're spending.
Mark Reichle
"Regional travel is going to be more of a focus," said Mark Reichle, CEO of Select Registry. "Generally, when the economy starts to tighten, and especially if airfares are increasing or prices in general are increasing, travelers tend to focus on markets close to home, within about three hours of their home location."
The survey also pointed to a shortening booking window and a contraction in average length of stay, from roughly 2.3 nights to two nights.
"That means folks who are generally staying three or four nights are cutting one of those nights out," Reichle said. "If they're allocating the same amount of money for travel that they did last year, or in some cases allocating less, they're going to either shorten their stay or look for opportunities where they're getting more for their dollar."
The cost pressures aren't one-sided, however. Reichle said Select Registry member properties are contending with rising costs on multiple fronts, including food, supplies and insurance, while consumers grow more price-sensitive.
"All of those things are pressuring a price increase at a time when the consumer is pressuring in the other direction," he said.