Navigating the Turbulence: 3 Essential Actions for Travel & Tourism in 2026

by Chris Adams

Head of Research & Insights

June 9, 2026

The outlook for U.S. and global travel and tourism remains highly uncertain for the remainder of 2026. The way destinations and tourism businesses respond to these risks, manage challenges and identify new opportunities will determine if tourism remains robust.

The ongoing Iran conflict is creating significant global headwinds by interrupting the flow of critical supplies like oil, gas and fertilizer. This has driven gas prices to near-record levels, reenergizing cost-of-living concerns for travelers.

A graph showcasing the increase in U.S. retail gasoline prices.

Source: reported by Reuters, May 5 2026 - news article here

These lingering economic impacts are projected to last through much of 2026, even if the conflict is resolved soon. For destination organizations and tourism businesses, flexibility and responsiveness are critical to managing this uncertain environment.

The good news: Despite major risks, traveler enthusiasm and budgets in North America and Europe are near an all-time high. Once geopolitical issues stabilize, this underlying strength should drive strong long-term growth.

Here are three essential marketing strategies to “meet the moment” and manage the major risks and uncertainties facing tourism in 2026:

1. Focus Marketing on Short-Haul Value

Elevated gas and flight costs—with gas over $4.50 per gallon on average and air travel tickets 22% above May 2025 levels—are forcing travelers to rethink their plans. Our May “American Travel Sentiment Study” with Longwoods International indicated that 36% of U.S. travelers are thinking of staying closer to home in the next six months (down from 41% in April). With elevated gas prices likely to continue through 2026, it is likely a still significant proportion of U.S. travelers will be rethinking the length of their summer or fall drive trips.

A graph showcasing the impacts on U.S. travelers of elevated gas prices.

Source: American Travel Sentiment Study, Longwoods International & Miles Partnership, May 2026

DMOs can refocus 2026 marketing on nearby source markets, especially short-drive destinations within a tank of gas and with a high proportion of past visitors who could be encouraged to return. Lean into PR and social to amplify your proximity, and highlight the experiences that will both attract new visitors and re-engage past visitors, reminding them of memorable moments they want to share again with family and friends.

For example, Memphis, Tennessee, is using a PR push and other marketing efforts to highlight the city’s proximity to most U.S. travelers. A press release from earlier this month shares that Memphis is “conveniently located within a day's drive of nearly two-thirds of the U.S. population” to remind drive markets of its easy access.

A photo of greenery in Upstate New York.

Meanwhile, New York State has used its iconic “I LOVE NY" campaigns for decades to encourage upstate travel from its biggest and closest market: New York City. Seasonal New York State campaigns use out-of-home, social platforms, streaming and local television in New York City, all emphasizing how close everything is to the city.

2. Prioritize Value for Money

Faced with rising travel-related expenses, 37% of U.S. travelers in May indicated they may reduce their number of trips in the next six months. A majority of travelers plan to cut back on discretionary spending, most significantly in their shopping, entertainment and recreation, and food and beverage spending.

This means that communicating exceptional value is paramount through 2026—even for luxury experiences. Value-driven dining, entertainment and retail promotions will be especially attractive to travelers who are looking for ways to trim their trip costs.

While Chattanooga, Tennessee, has long highlighted its links to cities up and down the East Coast, “The Scenic City” is currently leaning into its affordability with an enhanced range of visitor offers and packages.

Galveston, Texas, has also long nurtured its markets in nearby Houston and other Texas cities. It also works hard on its value proposition, offering a wide range of budget-friendly deals and highlighting “More Island Time for Less.”

DMOs can also highlight lower-cost, energy-efficient transportation such as regional transit that lets travelers skip using their car or easy EV road trips with accessible charging in the area. The Colorado Tourism Office, for example, refreshed its summer drive content with the article ”4 EV-Friendly Road Trips on Any Budget.”

An electric vehicle driving through the Colorado mountains.

3. Seize the Domestic Substitution Opportunity

International travel reached record levels globally in 2025, and international travel by Americans has been running at record levels. As we shared in our March ”Destination Decisions” research and webinar with Future Partners, international travel by Americans hit record levels in 2025, with 49% planning an international trip in early 2026—up from just 29% in 2016. However, recent events have caused 34% of U.S. travelers to rethink their international travel plans. About a quarter of these American travelers are looking to substitute their trip with a domestic destination.

Destinations and tourism businesses must seize this unique moment to reintroduce themselves to U.S. travelers who have been prioritizing overseas trips. Showcase authentic, unique domestic variations of what these travelers seek internationally: great local cuisine, distinctive cultural experiences, fascinating history—a particular opportunity during the America250 year—or wondrous nature.

Right now, Savannah, Georgia, is leveraging America250 to highlight its unique heritage & culture by positioning itself as a domestic alternative for travelers who might otherwise pursue European history and culture.

Responding to these trends, Travel and Leisure also published a story highlighting 25 U.S. destinations as domestic dupes for European summer locales. This is part of an increasing number of media and influencer stories in 2026 showcasing domestic substitutes for international travel.

A Final Word: Certainty and Value Drive Growth

Despite the current challenges, the long-term outlook for travel beyond 2026 remains strong, powered by passionate travelers worldwide who are ready to spend. However, in this period of uncertainty, many travelers narrow in on three priorities when choosing a destination: ease, certainty and clear value.

Resources:

American Traveler Sentiment Research, monthly research with Longwoods International
Decision Decisions, quarterly research with Future Partners
U.S. Road Trips Research, annual research with Longwoods International