Catering to the “Stay Local” Travel Trend  

This travel season may not look like others. In a reverse trend, many Americans are foregoing international destinations this summer, and are planning instead to vacation within the U.S. Whether it’s road trips, family visits, or festivals topping the list, Americans are showing a renewed interest in exploring the many landscapes and cultural attractions America has to offer. What’s really driving this reversal in travel preferences and how can we cater to the emerging “stay local” trend? It may involve a sudden pivot… 

Americans Are Traveling, But Not Where You Think 

There’s no doubt, Americans love to travel. Even with economic uncertainty, and persistent inflation, three quarters of Americans say they intend to travel, with U.S spending projected to reach $1.3 trillion this year. Yet, according to recent consumer polls, only a fifth to a third of those will be international trips. Most vacations will remain within the U.S.  

Previous surveys already show a growing interest in domestic travel, especially over the summer. Last year, over 60% of Americans planned to vacation domestically, and this year, U.S, households are leaning once again towards local destinations, with places like New York City, Las Vegas and Hawaii topping Americans’ travel lists. A third of survey respondents have already declared that they will exclusively travel within the U.S., versus 6% who say they’ll travel exclusively abroad.  

Why Americans Are Choosing Domestic 

So, why the growing preference for “staying local”? One reason could be cost. With pandemic savings depleted and the cost of living still high, Americans are already planning fewer vacations. Many families say they will likely reduce travel to only two trips per year, down from three or more, and many of those will be domestic trips to visit relatives or friends. Even with a strong U.S. dollar, international travel is often more expensive, more logistically complex, and long flights can be quite challenging with younger children. That’s why many U.S. families are opting for family road trips or local destinations that are easier to reach by short flight.  

Geo-political forces are also making international travel less predictable and riskier than usual. Ongoing global conflicts bring increased political and economic instability that could afflict entire travel regions - everything from disrupted flights to an increase in tourist-targeted crime. The increase in domestic travel may also be fueled by protectionist U.S. tariffs and a growing “buy American” sentiment that is making international travel less appealing. 

Catering to the ‘Stay Local’ Travel Trend  

How can travel and hospitality brands use this “stay local” trend to their advantage? If you want to tap into this growing market, it may mean a slight reengineering of your Customer Experience (CX) strategies.  

Local Recommendations 

Travelers often book hotels and flights 2 to 6 months before their planned trip. Which means that summer travelers are researching now for their next vacation. Your brand could come out on top if your sales strategies include a few well-timed recommendations from your booking or customer care agents, such as local attractions people could visit, like waterparks (favored by 17% of U.S. families), wellness retreats (popular with 15% of travelers), upcoming festivals or concerts, or unique travel offers that feature domestic locations.  

Knowledge is Sales Power 

Did you know twice as many Americans prefer to drive rather than fly? Instead of automatically suggesting flights, reservations teams can promote packages that bundle hotel, or resort stays, with car rentals. The same surveys show that travel costs are important to 52% of Americans, which means it’s easy to position domestic destinations to budget-conscious travelers, because they are often less costly and don’t involve worrying about fluctuating currency exchange rates.  

Become the Crafter of Unique ‘Experiences’ 

It’s all about knowing how to cater to the domestic travelers’ thirst for unique experiences. Like the recent popularity of “gig-tripping”, where a third of domestic travelers are willing to spend money to see their favorite artist or theater performance. When you’re traveling for something as specific as a concert, timing is everything, and if anything goes wrong with a booking, Americans will remember which travel brand offered the best issue resolution and will be more likely to book future trips. 

Find Partners That Don’t Settle for ‘Average’ 

Reservations teams need to do everything possible to make each interaction memorable. Agents should be current on everything from U.S. attractions to popular accommodations and resorts to changes in travel requirements, like the recent REAL ID Act that requires all travelers, even on domestic flights, to have a compliant driver’s license or other TSA-approved form of identification. It’s all part of delivering a superior travel experience that differentiates your brand. 

Tuning Into Domestic Travelers 

No one can deny, domestic travel is booming. It’s time to find a CX partner who understands this lucrative target market. Someone who is closer to the U.S. and aligned with American consumers and culture. If you can’t find all the talent you need locally, the nearshore is a perfect fit, with a legacy in hospitality, excellent English proficiency and incredible cost savings.  

Want to tap into growing travel markets? Connect with us. We are masters of CX management for travel & hospitality.