The post-pandemic travel frenzy is cooling off, but Americans aren’t staying home. Instead, travelers in 2026 are rethinking their vacations.
The COVID pandemic brought the global tourism industry to a near standstill with widespread travel restrictions in place and many concerned about getting sick.
The screeching halt to travel resulted in the biggest single drop in tourism revenue for the U.S., with a loss of $147 billion during the first 10 months of 2020.
In the spring of 2023, the World Health Organization declared an end to COVID-19 as a global health emergency. Later that year, President of Tourism Economics Adam Sacks told CoStar the recovery of travel in the U.S. was “basically” complete.
That rebound fueled the “revenge travel” trend, where travel surged for Americans making up for lost time, despite high plane-ticket prices and fewer flight routes.
But that phase appears to be fading.
Chris Carnicelli, CEO of Generali Global Assistance, told Forbes the trend is “officially dead” in 2026.
Now, the U.S. tourism industry is seeing more travelers asking one question: “Why?”
The rise of the ‘Whycation’
Industry observers say a growing number of travelers are prioritizing purpose when planning trips — a trend Hilton Hotels’ Trends Report has dubbed the “Whycation.”
Instead of simply deciding where to go, travelers are increasingly considering the deeper motivation behind a trip, whether that means pursuing a hobby, attending an event, reconnecting with family or focusing on wellness and mental health.
It’s not solely about itinerary-packed sightseeing; it’s about intentionality.
John Golicz, CEO and founder of the Travel & Adventure Show, said the trend reflects a broader shift in how people think about travel.
“A lot of the trends we’re seeing in 2026 and going into 2027 are secondary, tertiary cities of travel, not the major hot spots,” Golicz told WTOP.
Cities such as Prague and Budapest are gaining popularity, as well as destinations like Malta and the Indian Himalayas, among others, according to travel industry experts from Newsweek, Kayak and American Express Travel.
The ‘rough patch’ and the ‘bright spot’
Even as travel demand remains strong, the industry itself is facing new challenges.
Many Americans are struggling to find money for vacations. In a USA Today survey, more than half of the respondents said they cut back on their spending over the past year to pay for travel.
Meanwhile, hotel industry performance has softened.
Hotel revenue per available room fell 0.3% in the United States in 2025, according to CoStar, and industry analysts expect similar conditions in 2026.
“The U.S. hotel industry had a rough year,” Jan Freitag, CoStar’s national director for hospitality market analytics, told WTOP.
“The U.S. hotel industry is going through a rough patch, in terms of margin compression or profitability compression,” he said, adding that while overall demand has softened, not all segments are struggling equally.
Luxury and ultra-luxury properties remain a “bright spot” for the industry, he said, continuing to attract travelers willing to spend more on high-end experiences.
Budget and economy hotels, meanwhile, have faced greater pressure as travelers increasingly prioritize fewer but more memorable trips.
Cruises have also performed well, Freitag said, partly because travelers perceive them as a better value.
“They’re all-inclusive,” he said. “It’s a little bit better value perception.”
A ‘chilling’ effect on international travel
While Americans continue traveling abroad in large numbers, international visitors coming into the United States have declined.
According to Reuters, travel to the U.S. dropped by 6% in 2025 even as global tourism spending rose by 6.7%, compared to the previous year.
The World Travel & Tourism Council warned the U.S. tourism industry could lose an estimated $12.5 billion in international visitor spending for 2026.
“This is a wake-up call for the U.S. government,” Julia Simpson, the council’s president and CEO, wrote in a May 2025 report. “The world’s biggest Travel & Tourism economy is heading in the wrong direction, not because of a lack of demand, but because of a failure to act.”
Several factors appear to be contributing to the decline.
Travel Weekly reported that airline bookings from Europe to the U.S. dropped 14.2% year over year, comparing bookings made between October 2025 and January 2026 with the same period a year prior.
Some countries have also updated their travel advisories for the United States. Combined with stricter visa policies and higher entry fees, those warnings may be making some travelers hesitant to visit, said Larry Yu, a professor of hospitality management at George Washington University.
Economic uncertainty may also be influencing travel decisions.
Freitag said recent tariff announcements and trade tensions have created confusion within the corporate travel sector.
“After the tariff announcements … there was just a lot of uncertainty infused into corporate America, which directly impacted travel,” Freitag said. “We saw decline in group demand. We saw decline in transient corporate demand.”
He added that ongoing debates around immigration policies and visa restrictions have also contributed to a slowdown in international travel to the U.S.
“All of that has had a chilling effect on international inbound,” he said.
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