In the first half of 2025, international visitors to the U.S. plummeted by 14% compared to the previous year, marking a significant shift in travel patterns, according to Thepointsguy. A potential $21 billion hit to travel-related exports is projected if the trend of declining international visitors persists through 2025.
Yet, while global uncertainties and a weakening dollar severely impact international tourism to the U.S. Americans maintain robust travel spending by pivoting to domestic road trips. This internal refocus, however, merely masks the larger economic deficit impacting the inbound sector.
The U.S. travel industry appears to bifurcate: a strong domestic leisure market offsets, but does not fully compensate for, a struggling international inbound sector. This could reorient tourism infrastructure and marketing efforts.
Global Headwinds Drive Americans Home
The U.S. dollar's value dropped around 10% in the first half of 2025 alone, the largest six-month dip since 1973, according to Thepointsguy. The 10% drop in the U.S. dollar's value makes international travel more expensive for foreign visitors and less appealing for Americans looking abroad.
Canada, historically the largest inbound market for U.S. tourism, saw a 26% decline in overnight land visits as of March 2025, according to thepointsguy.com. The weakening dollar and 26% decline in overnight land visits from Canada compel Americans to reconsider international travel, pivoting instead to domestic options.
The Road Trip Reigns Supreme for American Travelers
- 71% — of Americans plan to drive on their next vacation, according to Stories Hilton.
- 76% — of global car travelers say they favor road trips over flying because it allows for more spontaneity, according to stories.hilton.com.
A vast majority of Americans now opt for road trips, valuing the spontaneity and control driving offers over other travel modes. The preference for road trips reveals a desire for flexible itineraries and personal autonomy in their travel experiences.
