In this article, we shall discuss 25 vacation spots in the U.S. that won’t break your bank. To skip our detailed analysis of the tourism industry in the United States as of 2024, go directly and see 10 Vacation Spots in the U.S. That Won’t Break Your Bank.
The American Travel Market in 2024: An Analysis
According to Bloomberg, the U.S. travel industry is struggling to reclaim ground on the travel front since the headwinds perpetrated by the COVID-19 pandemic. As 2023 drew to a close, the American travel industry lagged behind expectations and was just able to reach a mere 84% of its 2019 visitation levels. A study by Euromonitor International analyzed the performance of the top 18 travel industries in the world (See: 35 Most Visited Countries in the World in 2024) across four primary metrics comprising global perception, identity and security (visa wait times and expedited clearance programs for low-risk tourists), travel connectivity, and flight access. The report surprisingly uncovered that across virtually all categories, the U.S. ranked second to last, with the United Kingdom and France emerging as top performers. The study was a glaring confirmation of the fact that even vacation spots in the U.S. that won’t break your bank are significantly less modern and efficient as they trail behind established and emerging competitors like France and Saudi Arabia, respectively. According to a Tourism Economics report, staffing shortages and visa delays could cause American travelers to give up more than 3 million domestic trips per year to the best vacation spots in the US for families, resulting in a net loss of $7.4 billion in travel spending in 2024. By 2034, more than $150 billion could seep through the cracks due to excessive wait times for visas. Furthermore, international tourist arrivals remain more than 26% below pre-pandemic levels with international visitor spending standing at $99 billion, a meagre 50% of 2019, where nearly 79.4 million international tourists spent more than $181 billion. Additionally, for the first time, the United States is also navigating a multiyear travel deficit, which means that American citizens are spending more on traveling to many of the countries we mentioned in our article on the 25 Cheapest Countries to Fly to From the USA in 2024 than international tourists are spending in many of the cheapest places to travel right now in the USA.
According to a research report by luxury boutique Embark Beyond, there is a growing perception that even some of the best vacation spots in the US for families are no longer safe, with skyrocketing crime rates, homelessness in cities, and news of gun violence deterring potential visitors from visiting the country. According to the founder of Embark Beyond, Jack Ezon:
“Clients have begun to come with a litany of restrictions removing places like Florida, Texas and Tennessee (among others) based on their draconian anti-LGBTQ or anti-abortion legislation. Others asking not to be exposed to destinations that are too ‘liberal.’ Both are something we’ve not ever seen before.”
However, according to the US Travel Association, the sluggish recovery of the US travel market has little to do with political division, but rests solely on the shoulders of bureaucratic inefficiency. The State Department’s visa processing delays are a enormous source of contention when talking about travel recovery; wait times continue to hover above 400 days for first-time applicants from top markets which do not meet the criteria for visa waivers. These travelers tend to make up 43% of all inbound travel to the U.S, according to 2019 figures. Furthermore, hotel rates continue to skyrocket, with top hospitality providers in the U.S. like Hilton Grand Vacations Inc. (NYSE:HGV) and Marriott International Inc. (NASDAQ:MAR), and InterContinental Hotels Group PLC (NYSE:IHG) having to raise prices – even in vacation spots in the U.S. that won’t break your bank – due to inflationary pressures, staffing shortages, and other macroeconomic turbulence, causing hotel demand to plummet by 2% in 2024. Bureaucratic inefficiency is also denting business travel to the cheapest places to travel right now in the USA, with trade show exhibitors confirming attendance being down by more than 20% due to a lack of international visitation.
This precarious economic environment for U.S. travel has led to substantial downside for travel ETFs like US Global Jets ETF (NYSE:JETS), which provides investors access to the global airline industry. In the last five years, the ETF is down by 33.7% as of April 19. The expense ratio for the ETF stands at 0.60% with net assets hovering a little below $1.3 billion as of April 19. Another ETF facing the brunt of the travel slump in the United States is the Defiance Hotel, Airline, and Cruise ETF (NYSE:CRUZ), which seeks to mirror the performance before expenses of the BlueStar Global Hotels, Airlines, and Cruises Index. In the last five years, the ETF is down by more than 12.6% as of April 19.
The U.S. Hospitality Industry: Road to Recovery
However the pathways ahead are not all that bleak for major hospitality companies like Hilton Grand Vacations Inc. (NYSE:HGV) and Marriott International Inc. (NASDAQ:MAR), and InterContinental Hotels Group PLC (NYSE:IHG). As we predicted in our article on the 25 Most Luxurious Hotels in the World, the surge in leisure travel is expected to drive recovery, especially in outdoor, beach, and nature-focused locations. The luxury accommodation segment is projected to achieve growth of more than 6% through to 2025 – faster than any other chain-scale hotel class. Owing to rising inflationary pressure, increasing competition, and growing global demand, luxury travel is reaching new standards in many of the best vacation spots in the US for families. Luxury room rates have risen more than 28% in the United States, according to Bloomberg. The consumer base for the luxury segment is on the rise, with occupancy reaching 67.3% in the U.S. in 2023, up from 64.5% in 2022, despite rising room rates in many vacation spots in the U.S. that won’t break your bank.
These tailwinds for the hospitality industry have driven property investors to demonstrate heightened interest in hotel deals as players navigate higher-for-longer interest rates, even in some of the cheapest places to travel right now in the USA, according to Bloomberg. Hospitality is offering investors a much better hedge against rising inflationary pressures because rates can just be reset on a nightly basis. When compared to offices or retail where leases can range between five to twenty years in term, the hotel industry offers significant upside potential with minimal risk investment. According to a survey conducted by commercial real estate firm Jones Lang LaSalle Inc, more than eighty percent of investors have demonstrated plans to make net purchases of hotel stocks like Hilton Grand Vacations Inc. (NYSE:HGV) and Marriott International Inc. (NASDAQ:MAR), InterContinental Hotels Group PLC (NYSE:IHG), and others, in the next twelve months, even in vacation spots in the U.S. that won’t break your bank. Interest remains concentrated at either end of the price spectrum, with consumers opting for luxury targets and affordable hotels, all under the wider backdrop of urban properties making a comeback in many of the best vacation spots in the US for families.
Our Methodology
In order to compile our list of 25 vacation spots in the U.S. that won’t break your bank, we decided to undertake a consensus-based approach using a diverse variety of credible sources, including but not limited to travel blogs, news reports, and Reddit threads in order to determine some of the most popular vacation spots in the United States. We then shortlisted more than 50 cities which appeared most frequently during our research. Subsequently, we used three primary metrics to determine the base-level average cost of travel per person per day at each destination: average accommodation prices for one night at a mid-range hotel during the summer cycle, food and dining costs in mid-range restaurants, and transportation expenses. We used data from Trivago and Booking.com to get the July 2023 prices of five mid-range hotels at each destination. We then calculated the mean to arrive at the average overnight accommodation price in each city. To calculate the average food and dining expenditure in each state, we used data from the Bureau of Labor Statistics. And finally, to calculate average transportation costs, we used statistical data from the US. Department of Transportation. After we had compiled data on all three metrics, we averaged out our findings to obtain the average cost of travel per person per day in each city. We then ranked the cities based on the average costs, from highest to lowest. For additional context for our readers, we also mentioned the best and most affordable destinations and activities at each city.
By the way, Insider Monkey is an investing website that tracks the movements of corporate insiders and hedge funds. By using a similar consensus approach we identify the best stock picks of more than 900 hedge funds investing in US stocks. The top 10 consensus stock picks of hedge funds outperformed the S&P 500 Index by more than 140 percentage points over the last 10 years (see the details here). Whether you are a beginner investor or a professional looking for the best stocks to buy you can benefit from the wisdom of hedge funds and corporate insiders.
To read on season-specific vacation spots in the U.S. that won’t break your bank, check out our articles on the 25 Best Cheap Summer Vacation Destinations in the US and 30 Most Affordable Winter Vacations in the US.
25 Vacation Spots in the U.S. That Won’t Break Your Bank
25. San Diego, California
Average Cost Per Person Per Day: $249
Attractions/Things To Do: Balboa Park Gardens, Torrey Pines State Natural Reserve
The food options in San Diego are known to be extremely affordable and vast, ranging from pizzas and burgers to fish and tacos. The accommodation and transportation costs in San Diego are also extremely low, making it one of the best vacation spots in the U.S. that won’t break your bank.
24. Knoxville, Tennessee
Average Cost Per Person Per Day: $236
Attractions/Things To Do: Old Gray Cemetery, Knoxville Museum of Art
Knoxville is known to be one of the most exciting yet affordable cities in Tennessee. The accommodation costs are extremely low, and the city’s public transport infrastructure is well-connected. The city offers a large number of budget-friendly attraction and activities options to its visitors.
23. Atlanta, Georgia
Average Cost Per Person Per Day: $232
Attractions/Things To Do: Atlanta Contemporary Art Centre, Center for Puppetry Arts
Since Atlanta welcomes numerous international and domestic flights, airfare is comparatively cheaper in to the city. Atlanta’s affordability is reflected in a diverse range of attractions and activities that cater to all kinds of tourists. Thus, most of the attractions in the city are either priced extremely low or free.
22. Houston, Texas
Average Cost Per Person Per Day: $231
Attractions/Things To Do: Holocaust Museum, Market Square Park, Rothko Chapel
Houston is an extremely affordable city, primarily because of reasonable accommodation and transportation costs. It is convenient and budget-friendly to rent a car in the city. The city is also home to innumerable budget-friendly attractions, which makes it one of the best vacation spots in the U.S. that won’t break your bank.
21. Washington D.C.
Average Cost Per Person Per Day: $229
Attractions/Things To Do: Smithsonian Museum, National Mall, the United States Botanic Garden
Visiting the main and iconic attractions is one of the most exciting yet affordable things to do in Washington D.C. The city is mainly known for its museums and historic and political landmarks. Thus, Washington D.C. is an extremely affordable vacation spot, especially for a family.
20. Sedona, Arizona
Average Cost Per Person Per Day: $228
Attractions/Things To Do: Chapel of the Holy Cros, Oak Creek Canyon
Sedona is the perfect vacation spot for visitors who are interested either in hiking or in American heritage and history. The most affordable time to visit Sedona is during April or October since there are fewer tourists and the accommodation rates are lower.
19. Gulf Shores, Alabama
Average Cost Per Person Per Day: $219
Attractions/Things To Do: Gulf State Park, Alabama Gulf Coast Zoo
Gulf Shores is known to be one of the best beach vacation spots in the United States on a budget. When visited during fall or spring, the hotel prices are even lower than usual. Gulf Shores is home to many restaurants that offer affordable food options, making it one of the best vacation spots in the U.S. that won’t break your bank.
18. Moab, Utah
Average Cost Per Person Per Day: $216
Attractions/Things To Do: Arches National Park, Castle Valley
Moab is a small town but has a wide variety of activities to offer to its visitors. Some of these activities include hiking, kayaking, and rafting. Even though the hotel rates are extremely reasonable in this area, many visitors prefer to pitch a tent and camp.
17. Jackson, Wyoming
Average Cost Per Person Per Day: $214
Attractions/Things To Do: Grand Teton National Park, Jackson Hole
Located in Jackson, Wyoming, the Grand Teton National Park offers various affordable activities to its visitors including hiking, climbing, kayaking, camping, and wildlife watching. The hotel rates are also known to be extremely low in the city.
16. Phoenix, Arizona
Average Cost Per Person Per Day: $205
Attractions/Things To Do: Phoenix Art Museum, Deer Valley, South Mountain Park
Having pleasant weather during spring and winter, the best time to visit Phoenix is between November and April. The city offers activities and attractions for all kinds of people at a lower rate. Phoenix is home to numerous museums and natural landscapes that are free of cost to visit, making it one of the vacation spots in the U.S. that won’t break your bank.
15. Raleigh, North Carolina
Average Cost Per Person Per Day: $204
Attractions/Things To Do: Pullen Park, North Carolina Museum of Art
Home to innumerable historical buildings, parks, and museums, Raleigh is known to be an extremely exciting vacation spot in the United States. The city is also known to be best explored on foot or bike, which in turn saves a lot of money.
14. Daytona Beach, Florida
Average Cost Per Person Per Day: $202
Attractions/Things To Do: Equestrian Adventures of Florida, Museum of Arts and Sciences
Daytona Beach is one of the most popular vacation spots in the United States, primarily because it offers a wide variety of affordable activities to tourists. The visitors can relax on the beach or visit the restaurants, shops, and rides alongside the beach.
13. Portland, Maine
Average Cost Per Person Per Day: $199
Attractions/Things To Do: Portland Museum, Portland Observatory, Casco Beach
Portland is one of the most affordable beach destinations in the United States. Its picturesque landscape allows the tourists to enjoy and relax, while not worrying about spending a lot of money. The best time to visit the city for cheaper rates is between July and October.
12. Savannah, Georgia
Average Cost Per Person Per Day: $186
Attractions/Things To Do: Forsyth Park, Tybee Island
Tourists can enjoy Savannah on a low budget at any time of the year. The accommodation rates in the state are generally known to be extremely low. For a fun and affordable vacation, the visitors can visit Forsyth Park and Tybee Island.
11. Oklahoma City, Oklahoma
Average Cost Per Person Per Day: $185
Attractions/Things To Do: Oklahoma City National Memorial and Museum, Myriad Botanical Gardens
Known as “The Big Friendly”, Oklahoma City welcomes approximately 20 million tourists every year. The visitors can experience the diversity and hospitality that the city showcases. There are numerous affordable food options ranging from barbecue to street food. Oklahoma City is number 11 on our list of vacation spots in the U.S. that won’t break your bank.
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Disclosure: None. 25 Vacation Spots in the U.S. That Won’t Break Your Bank is originally published on Insider Monkey.