Recent data reveals a concerning decline in the number of American travelers planning vacations to Europe. According to a survey conducted by the European Travel Commission (ETC), the percentage of American tourists intending to visit Europe has dropped sharply, from 45% in 2024 to 37% in 2025. This marks a significant shift, especially when compared to the figures from 2021, when European destinations were among the top choices for U.S. travelers.

This downturn raises important questions about the current state of the global travel industry. Cost has been identified as the main contributing factor to this decline, as travelers are increasingly seeking affordable alternatives that offer similar experiences without the hefty price tag associated with European vacations.

The Survey Findings: A Wider Trend of Decreased European Travel

The ETC’s survey, which included responses from 7,087 long-haul travelers worldwide, paints a clear picture of the changing preferences of global tourists. Of the U.S. respondents, only 18% reported plans to visit Europe in the coming year, a stark drop from the previous year’s figure of 28%. This shift is part of a broader trend, with only 44% of global travelers indicating that Europe is their top travel destination in 2025, down from 49% in 2024.

The CEO of the ETC noted that this decline in U.S. travel sentiment towards Europe is influenced by several factors, including economic pressures, political uncertainty, and changing consumer preferences. As costs continue to rise, Americans, along with other international travelers, are adapting by looking for alternatives that can provide a similar cultural experience without the high costs of European destinations.

The Impact on the Travel Industry: A Shift Toward Budget-Friendly Alternatives

As European destinations lose some of their allure due to soaring costs, travelers are increasingly turning to domestic U.S. locations that offer similar cultural experiences at a fraction of the price. The travel industry is already feeling the effects of this shift, as tourists opt for cities that mirror European charm while keeping their travel expenses manageable.

Several U.S. destinations have emerged as budget-friendly alternatives for travelers seeking a European-like experience. Cities such as Carmel-by-the-Sea in California, St. Augustine in Florida, and Pella in Iowa have capitalized on their European-style architecture and cultural influences, providing visitors with a taste of Europe without the international flight costs.

Carmel-by-the-Sea: A European Experience in California

Located in California, Carmel-by-the-Sea is a picturesque town known for its European-inspired charm. The town’s quaint streets are lined with Greek restaurants, Irish pubs, and German and Swiss-style architecture, offering visitors a European atmosphere within the U.S. A walkable destination, Carmel offers a relaxing vacation experience without the expensive transportation costs typical of European cities. Travelers can enjoy a variety of international cuisines and wines, further enhancing the European ambiance.

St. Augustine: A Glimpse of Spain in the U.S.

The city of St. Augustine, located in Florida, is the oldest continuously occupied European settlement in the United States. Founded by the Spanish in 1565, St. Augustine’s Spanish-style architecture and historic landmarks offer a distinctly European vibe. Visitors can explore the Castillo de San Marcos, a 17th-century Spanish fort, or enjoy traditional Spanish and Cuban dishes in local restaurants. St. Augustine offers an affordable alternative to the high prices of European destinations while providing a rich cultural experience.

Pella: Dutch Heritage in the Heart of Iowa

In the Midwest, Pella, Iowa, offers a unique European experience reminiscent of The Netherlands. Known for its Dutch-style architecture, Tulip Time Festival, and massive Dutch windmills, Pella attracts visitors looking for a European vacation on a budget. The town’s Dutch bakeries and historical museums further immerse travelers in its rich European heritage.

Boston: The New England European Connection

With its historic European-style architecture, Boston offers a taste of Britain and Europe. Landmarks like Faneuil Hall, Boston Common, and the Freedom Trail provide visitors with a free, European-inspired experience. The city’s cobblestone streets, Irish pubs, and historic buildings bring Europe to life, all while keeping costs low.

Leavenworth: A Bavarian-Inspired Getaway

For those craving a European escape with a German flair, Leavenworth, Washington, offers a perfect solution. The town’s Bavarian-inspired architecture and festivals like Oktoberfest transport visitors straight to Germany. Travelers can enjoy hiking, biking, and even snow sports, all while soaking in the quaint European atmosphere.

The Global Impact: A Shift in Travel Preferences

This growing trend away from expensive European vacations will likely have lasting effects on the global travel industry. Tour operators, hoteliers, and travel agencies may have to rethink their strategies to accommodate the demand for more budget-friendly destinations. As travelers become more cost-conscious, destinations that can offer an authentic European experience without the hefty price tag will see a rise in popularity.

The impact of this shift is not only felt in the U.S. but also in other parts of the world. Countries in Europe may see fewer international visitors, prompting them to reevaluate their pricing strategies and invest in creating more affordable travel options. The rise of domestic travel options offering European charm could also have long-term consequences for international tourism.

Finding European Charm Without the Price Tag

As rising costs make European travel less appealing, travelers are finding new ways to enjoy the old-world charm of European cities closer to home. Cities like Carmel-by-the-Sea, St. Augustine, Pella, Boston, and Leavenworth offer travelers an authentic European experience at a fraction of the cost. For those who want to enjoy the beauty and culture of Europe without breaking the bank, these destinations provide an ideal solution.

The travel industry will need to adjust to this shift, as more and more people turn to domestic options for their cultural vacations. With these affordable alternatives, travelers can still enjoy the magic of European-style destinations without the financial strain.

The post Why Are Americans Skipping Europe? How Cities Like Carmel-by-the-Sea, St. Augustine, and Others Are Rising as Popular Alternatives appeared first on Travel And Tour World.