Published by Global Banking & Finance Review®
Posted on December 12, 2025
4 min readLast updated: March 1, 2026
Add as preferred source on GoogleEuropean tourists are opting for smaller, affordable US cities like Nashville, avoiding traditional hotspots like New York due to cost concerns and new airline routes.
NEW YORK/LONDON, Dec 12 (Reuters) - European travelers, nearly a year into President Donald Trump's administration, are popping up in less-heralded - and often more affordable - destinations in the U.S. like Tennessee, Montana and Idaho, while skipping hot spots like New York and Washington D.C.
Even as tourism from Western Europe to the United States has dipped, less obvious destinations have seen an uptick in arrivals as tourists seek out classic Americana experiences, and airlines add flights to smaller cities.
Many travelers canceled trips to the United States this spring as Trump ramped up a trade war and at times lambasted Europe in harsh terms. From January to October, U.S. travel from Western Europe fell about 3.5% year-over-year, according to the U.S. National Travel and Tourism Office.
But the trend varies by destination. The nation's capital of Washington D.C., New York and California are seeing fewer visitors, while Tennessee, home to Elvis Presley's Graceland estate, has welcomed 24% more people from Western Europe.
"New York is my prime, let's say, destination. But as I've been there more often, I also really wanted to explore the rest of the U.S.," said Renee Oostdam, 34, from Zurich, Switzerland, who visited Nashville and Boston and took a road trip through Texas that included a rodeo.
"I just wanted to go to the iconic American places."
LARGER US CITIES TAKE A HIT AS RURAL AREAS BENEFIT
Part of the equation is cost. Average hotel rates in New York City were around $316 year-to-date in October compared to $176 in Nashville and $145 in Boise in the same period, according to CoStar, a data analytics firm.
European travelers tend to be more cost-sensitive than Americans, given cost-of-living crises and lower salaries. About 12 million Western Europeans visit the U.S. every year and contribute $39 billion to the economy, according to Tourism Economics, an Oxford Economics company.
"Some of the larger cities have taken more of a hit, if you will, than some of the more rural and lesser-known destinations," said Lisa Simon, CEO of the International Inbound Travel Association.
"We also hear a lot about high prices and high costs of traveling to the U.S."
Travel to Washington D.C. from Western Europe is down about 11% in the January-to-October period, while California and New York, which still receive the largest share of Western European travelers, saw 9% and 4% declines, respectively.
Meanwhile, Minneapolis is expected to see a 20% increase in travelers for the October-to-December period, according to Michael Yeomans, head of travel intelligence at Amadeus, a travel and tourism technology firm. He added travel to Dallas and Boston are expected to increase 16% and 13%, respectively.
Miami and Los Angeles both will see 7% fewer travelers, he said.
Travelers from Western Europe still represent 37% of international travelers to the U.S. and European carriers are optimistic visitors will increase next year with the soccer World Cup held in North America, including in 10 U.S. states such as Kansas and Massachusetts - as well as the nation's 250th anniversary.
EUROPEAN CARRIERS ADD ROUTES
British Airways has axed some of its U.S. routes, including one between New York's JFK airport and London's Gatwick Airport, while also reducing flights to Miami. In April, the airline will launch service from London to St. Louis.
"British Airways is betting big on Saint Louis as not just another great destination, but the front porch to the Midwest," said Brad Dean, CEO of Explore St. Louis.
German airline Lufthansa also plans to seasonally increase service to the Midwestern city next year from three to five times a week.
Mark Ezell, commissioner of the Tennessee Department of Tourist Development, said better air connectivity from British Airways, Icelandair and Aer Lingus had driven a rise in tourist arrivals. Flights from Europe to Nashville have almost doubled year-over-year to 665 in 2025, according to Cirium.
Ireland-based Aer Lingus said it has seen strong demand for travel to U.S. destinations beyond traditional gateways, according to a statement from Chief Strategy and Planning Officer Reid Moody.
"Demand for flights to Nashville have been encouraging and supports Aer Lingus' broader strategy of connecting Ireland and Europe with diverse U.S. cities," he said.
(Reporting by Doyinsola Oladipo in New York and Joanna Plucinska in London; additional reporting by Ilona Wissenbach in Frankfurt; Edited by David Gaffen, Adam Jourdan and Aurora Ellis)
Tourism refers to the travel of individuals to destinations outside their usual environment for leisure, business, or other purposes, contributing significantly to local economies.
Economic growth is the increase in the production of goods and services in an economy over a period, often measured by the rise in Gross Domestic Product (GDP).
Airline routes are the specific paths that airlines take to connect different airports, which can change based on demand, economic factors, and strategic decisions.
Consumer behavior is the study of how individuals make decisions to spend their available resources on consumption-related items, influenced by various factors including economic conditions.
Travel demand refers to the desire and willingness of consumers to travel, influenced by factors such as price, income, and personal preferences.
Explore more articles in the Headlines category
