Iran War, gas prices weigh on U.S. travel plans

In its latest tracking study of American travellers, Longwoods International found that a third of those report that higher gas prices are impacting their travel plans, up from 21% a month ago.

Of those who intended to travel in the next six months, 41% are now planning to travel to destinations closer to home, 36% are reducing the number of trips they are taking, and 8% are canceling their trips.

Amir Eylon, President and CEO of Longwoods International, said that: “Last June, 94% of American travelers were planning trips in the next six months. Now, that percentage has fallen to 89%, the lowest level in a year.”

Twenty-seven percent of travellers say that the war in Iran makes them less likely to travel internationally. Among those who reported the war is influencing their international travel, 40% will postpone their international trips, 31% will replace an international trip with a domestic one, and 19% will cancel their international travel.

Four key takeaways from Longwood International’s tracking study include:

• One third (33%) of American travelers say they are concerned that gas prices will greatly impact their travel plans within the next six months: This is up twelve points from 21% in March of 2026!  While one month does not make a trend, this is directionally concerning as it points to direct impacts on travel and spending, especially if the war is prolonged and fuel prices remain elevated.
• Cancellations, changing travel plans, and re-allocation of travel spending in short to mid-term response to surge in gas prices:  Of those who intend to travel in the next six months 8% are cancelling trips, 41% are now planning to travel to destinations closer to home, and 36% are reducing the number of trips they are taking. One third are also reducing their spend on entertainment (35%) and retail purchases (33%) on their trips.  The silver lining here is that regional drive markets will see the greatest demand in response as folks opt for road trips over more expensive long haul air travel. Long haul destinations will need to find ways to demonstrate value to those now comparing options. Another silver lining is that a significant portion of summer travel was being booked before and in the early days of the Iran War…but postponement and cancellation are clearly options being considered.
• The Iran War is also causing a decline in American travellers’ desire to travel abroad within the next 12 months: Twenty-seven percent of American travelers say that the war in Iran makes them less likely to travel internationally. Among the 34% of those who reported the war is influencing their international travel, 40% will postpone their international trips, 31% will replace an international trip with a domestic one, and 19% will cancel their international travel. Many of these international trips will likely be replaced by domestic travel, so there is an opportunity for U.S. destinations to convert these travelers who have a bit more discretionary income.
• Demand for travel in 2026 continues at high levels, but it has slowly softened a little: 89% of American travellers still indicate travel plans to go somewhere within the next six months, but that is down six points from a peak of 94% in June 2025. Once again, travellers will be seeking value at levels not seen in several years, and this will be a year of “the Great American Road Trip.” The sky is not falling … but the pressure on the travel industry just got a bit higher.

Go to https://longwoods-intl.com/category/americantravel-sentiment/ for more.