In this article, we shall cover the 30 most expensive cities to visit in the US. To skip our detailed analysis of the tourism industry in 2023, go directly and see 5 Most Expensive Cities to Visit in the US.
If 2022 was the year of a deliberated return to travel, 2023 has seen a global head-first dive into tourism. As travel resumes and builds momentum to pre-pandemic levels, the resilience of the global tourism industry cannot be understated. Against all projections, international travel made a resounding comeback in 2022 with visitor numbers to Europe and the Middle East climbing to more than eighty percent of 2019 levels. The United States alone recovered more than sixty five percent of pre-pandemic tourists, even to its most expensive cities to visit. This is a remarkable feat especially since it was achieved as China doubled down on its ‘Zero-COVID’ policy, effectively restricting the world’s largest outbound travel market. According to an article by Bloomberg, travel is set to become a $15.5 trillion industry by 2033, accounting for more than 11.6% of the global economy. To know more about the tourism industry and some of the most expensive cities to visit in the U.S and around the world, read our article on World Tourism Rankings by Country: Top 20 Countries.
According to a survey by Forbes, recovery for the global travel industry in America is expected to continue on its current trajectory. International tourist arrivals are likely to reach more than 95 percent of pre-pandemic levels in 2023 subject to economic headwinds, travel resurgence in the Asia-Pacific and global geopolitical turbulence. In the survey, 87% of respondents said they expect to travel more than they did in 2022 especially to the most expensive cities in the U.S. This is impressive considering the fact that nearly 45% of these respondents travelled once or twice in 2022, with 42% travelling three or more times. More than half of the respondents seemed to favor leisure trips, with the other half showing enthusiasm with respect to road trips, beach vacations, and romantic getaways. Moreover, 54% of respondents are allowing for a higher travel budgets in 2023. While it doesn’t exactly mean that Americans are immune to skyrocketing inflation rates, it does mean that travel is assuming a higher priority for American consumers. It is for these reasons that investors are flocking towards prominent travel stocks like Booking Holdings Inc. (NASDAQ:BKNG) and Airbnb Inc. (NASDAQ:ABNB). Furthermore, the global shift towards electronic payment methods and the fact that nearly 81% of travelers use credit and debit cards have also led to strong investor sentiment around stocks like Mastercard Inc. (NYSE:MA) and American Express Co. (NYSE:AXP).
Global Travel in 2023: Six Key Trends
As the global travel rebound continues, increasing costs, deteriorating macroeconomic climates and rising inflation rates are also leading to a significant shift in consumer attitudes. While tourist spending is showing a 112% increase compared to 2021 according to Bloomberg, the resulting shift in consumer attitudes has led Simon-Kucher to identify the emergence of six primary trends that are impacting the travel industry, in a study conducted in 2023. These trends are an incredibly strong indicator in determining consumer behavior during the holiday season. Companies like Booking Holdings Inc. (NASDAQ:BKNG), Airbnb Inc. (NASDAQ:ABNB), Mastercard Inc. (NYSE:MA) and American Express Co. (NYSE:AXP) can study and use these insights to adapt to the shift in tourist behavior, not only in the United States but around the world.
One of the first trends to emerge is that the cost-of-living is the primary determinant when it comes to consumer priorities. Although more than 84% of American tourists remain largely undeterred by rising prices and inflationary pressures, one in five maintain that they would consider skipping their vacation plans owing to financial constraints and would largely avoid the most expensive cities to visit in the U.S. As the cost-of-living peaks in 2023, people are more inclined on focusing on essentials and reserving their travel plans for outside the peak holiday season. To know more about some of the most expensive cities to live in the U.S, read our article on the 30 Most Expensive Cities to Live in the U.S.
Secondly, another emerging trend is that inflation is a fundamental driver in determining advance booking patterns by consumers. According to the study, consumer booking lead time has hardly changed as compared to 2022, with more than 41% of tourists booking their vacation accommodations further in advance as compared to 2022. As fears of rising inflation rates mount, people are pushed increasingly towards advanced booking options, with 37% of tourists claiming they resort to advance booking to avoid inflation-driven price hikes in the most expensive cities to visit in the U.S. Since advance booking is largely carried out through electronic payment, companies like Mastercard Inc. (NYSE:MA) and American Express Co. (NYSE:AXP) have the most to gain from this trend.
Thirdly, the rise of personalized travel is an emerging trend which is set to radically transform the travel industry in 2023. The number of consumers opting for personalized travel plans in lieu of all-inclusive ones is steadily rising, with more than half of the travelers in the U.S. selecting a personalized trip for their most recent vacation. Across global markets, personalized travel has increased by more than six percent.
Furthermore, the rise of personalized travel coupled with increasing inflationary headwinds have given rise to segmented travel spending. Although consumer spending is anticipated to increase by eight percent regardless of rising inflation rates, growing financial constraints has given rise to three kinds of tourists: splurge, who plan to spend 20% more on tourism in 2023; stable, who plan to spend the same as they did in 2022; and cautious, who plan to spend six percent less. Splurge travelers show an increased proclivity towards personalized travel, whereas cautious and stable tourists are more inclined towards all-inclusive packages. Although tourists are planning to cut expenditure when it comes to souvenirs and local experiences, they largely intend on spending more on food, drinks and accommodation.
Business travel seems to be on the downlow, with one in five respondents reporting they shall not be travelling for work. Companies have also been revisiting their travel policies, with more organizations now encouraging their employees to travel by rail rather than by air. This shift in sentiment is largely due to the rise of new virtual technologies like the metaverse. However, if you want to know about jobs that still contain a significant amount of travel, check out our article on 10 Best Jobs for People who Want to Travel.
Lastly, as the world recognizes the need to meet sustainability objectives in light of the climate crisis, the tourism industry is also set to adapt. Sustainability is emerging as an immensely important priority for tourists, with one in three willing to spend more on sustainable options. The United States is leading this initiative, with 33 percent of consumers reporting that they are willing to spend more on vacation packages that meet environmental sustainability objectives. According to the study, holidaymakers have little qualms spending 55% higher on sustainable food, accommodation, and flights. In light of this trend, companies like Booking Holdings Inc. (NASDAQ:BKNG) and Airbnb Inc. (NASDAQ:ABNB) are diverting greater investments to their sustainability imperatives to attract more favorable investor sentiment. You can see more stocks which are attracting significant investor interest in our article 10 Travel Stocks Billionaires are Loading Up On.
Bridging the Labor Gap: An Analysis
Although long-term forecasts with respect to the tourism sector seem to be relatively optimistic for the next decade with the industry outpacing the growth of the overall economy by an expected 2.7% a year according to McKinsey, the sector continues to battle a prolonged and pronounced labor shortage. According to an analysis by McKinsey and Company, labor supply and demand remains unbalanced post the pandemic. Today, in the United States, more than 7% of tourism jobs are projected to remain unfilled.
According to McKinsey, the industry is facing a mass exodus of tourism staff, especially from customer-centric roles, and the possibility of bringing these employees back is not expected to materialize any time soon. Hotels, restaurants, cruises, and airlines continue to face serious staff shortages which are translating into operational, reputational, and financial hiccups. If unaddressed, the labor gap may restrict the travel industry’s projected growth trajectory.
Some reasons that supplement this shortage may be chronic workplace challenges, the effects of the pandemic, high seasonality and low regulation of tourism jobs, long working hours, low wages, lack of social protection, and the informality of the overall working condition. The tourism industry would do well if it were to recalibrate some of its fundamentals to build a far more sustainable future. It can achieve this by either making the industry attractive to employees or by improving upon their product portfolio to complement existing staffing needs. Another solution could be to integrate within the workforce, digital and interpersonal skills needed to cater to the fast changing needs of the consumer. This new technology could be utilized to provide customers with a digitally enhanced experience, make up for labor shortages, and improve working conditions.
Photo by Mesut Kaya on Unsplash
Our Methodology
To compile our list of the 30 most expensive cities to visit in the U.S, we decided to use a variety of third-party research. We first shortlisted the hundred most visited cities in the United States based on data from Allianz Partners, which reported on the top travel destinations in the U.S. between the period of 2017-2022. Then, we used three primary metrics to determine the average cost of travel per person per day in each city: average accommodation prices for one night at a mid-range hotel, 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 in each city. We then calculated the average to arrive at the overnight accommodation price in each city. To calculate the average food and dining expenditure, we used indices from Numbeo. 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 lowest to highest.
You can also read about some of the most popular tourist destinations within the U.S. in our article 30 Top Tourist Attractions in the U.S.
Most Expensive Cities to Visit in the US
30. St. Louis, Missouri
Average Basic Cost Per Person Per Day: $200
Every year, St. Louis welcomes around 25 million tourists from around the world. The city has multiple tourist attractions like the City Museum for history enthusiasts, and the St. Louis Zoo for families.
29. Miami, Florida
Average Basic Cost Per Person Per Day: $206
Miami is the second-most popular city of Florida and is home to around 442,241 people. It is known for its beaches, but many tourists also visit attractions like the Everglades National Park and Art Deco Historic District.
28. San Antonio, Texas
Average Basic Cost Per Person Per Day: $213
San Antonio is a tourist-friendly city with approximately 839 tourist attractions. It is home to one of the country’s most expansive public transport systems and also houses many historical attractions.
27. Nashville, Tennessee
Average Basic Cost Per Person Per Day: $220
Next on our list of the 30 most expensive cities to visit in the U.S. is Nashville. In 2022, Nashville welcomed around 14.4 million tourists. Widely known to be the city of music and storytellers, the best time to visit is either during spring or fall.
26. Anaheim, California
Average Basic Cost Per Person Per Day: $239
Anaheim is the second-largest city in the Orange County in terms of land area. The city is mainly known for the Disneyland Resort, due to which it receives more than 40 million tourists each year.
25. Philadelphia, Pennsylvania
Average Basic Cost Per Person Per Day: $240
Philadelphia is home to around 1.57 million people. The city is famous for its historic tourist attractions including Independence Hall and Liberty Bell.
24. Asheville, North Carolina
Average Basic Cost Per Person Per Day: $243
Asheville is a small town and mostly attracts travelers who are interested in promoting local sustainable agriculture. It has 17 farmers’ markets, in addition to many other attractions like churches and art galleries.
23. Denver, Colorado
Average Basic Cost Per Person Per Day: $246
Denver is home to many museums and galleries. However, it is largely famous for its entertainment attractions, botanical gardens and the Denver Zoo. In 2022, the city welcomed around 36.3 million tourists.
22. Phoenix, Arizona
Average Basic Cost Per Person Per Day: $248
Next on our list of the 30 most expensive cities to visit in the U.S. is Phoenix. Phoenix is known for its warm temperature all year round. It is home to around 672 tourist attractions, which include hot air balloon rides, the Grand Canyon, and numerous museums.
21. Hilton Head, South California
Average Basic Cost Per Person Per Day: $253
Hilton Head is a small town and has a population of around 38,076. The city is mainly known for its ocean beaches and golf courses and has more than 100 miles of paved trails.
20. Aspen, Colorado
Average Basic Cost Per Person Per Day: $260
Aspen welcomes tourists throughout the year because of its outdoor recreational activities like skiing and hiking. The city is also known for its exquisite fine-dining restaurants and boutiques.
19. Houston, Texas
Average Basic Cost Per Person Per Day: $262
Houston has a total of 1237 tourist attractions and was ranked as the #1 most popular city for tourism in Texas. It includes attractions like The Houston Museum of Natural Science and the Cockrell Butterfly Center.
18. San Jose, California
Average Basic Cost Per Person Per Day: $265
San Jose has a high temperature throughout the year and is home to nearly a million people. The city’s tourist attractions mostly include museums, zoos, and parks.
17. Palm Springs, California
Average Basic Cost Per Person Per Day: $270
Palm Springs is a tourist city where travelers can relax and enjoy. The city has attractions like the Palm Canyon Drive and Palm Springs Art Museum. On our list of the 30 most expensive cities to visit in the U.S, Palm Springs ranks number seventeen.
16. Savannah, Georgia
Average Basic Cost Per Person Per Day: $283
Savannah is a city that tourists find incredibly refreshing. The city is known for activities like walking in parks or riding horse-drawn carriages. The Cathedral of St. John is a well-known tourist attraction.
15. Honolulu, Hawaii
Average Basic Cost Per Person Per Day: $284
Honolulu is Hawaii’s largest city and is famous for surfing resorts and tropical drinks. Furthermore, tourists also visit attractions like art museums and are drawn to bike rides and beautiful sceneries.
14. Atlanta, Georgia
Average Basic Cost Per Person Per Day: $290
Atlanta’s most famous attraction is the largest aquarium in the world, the Georgia Aquarium. The city is extremely tourist-friendly and welcomes nearly 57 million tourists each year.
13. Las Vegas, Nevada
Average Basic Cost Per Person Per Day: $294
Las Vegas is the largest city in the state of Nevada and has a total of 2515 tourist attractions. It is famous for its nightlife, its casinos, and vibrant atmosphere.
12. San Diego, California
Average Basic Cost Per Person Per Day: $302
San Diego has a population of around 1.38 million and retains a warm climate throughout the year. The city attracts more than sixty million tourists annually due to its zoos, museums, and art galleries.
11. Portland, Oregon
Average Basic Cost Per Person Per Day: $321
Portland is home to many gardens and parks including International Rose Test Garden, Portland Japanese Garden, and Washington Park.
10. Chicago, Illinois
Average Basic Cost Per Person Per Day: $330
In 2022, Chicago welcomed around 49 million tourists because of its famous architecture and exquisite museums. Some tourist attractions include Chicago Architecture Center and Museum of Science and Industry.
9. Park City, Utah
Average Basic Cost Per Person Per Day: $334
Next on our list of the 30 most expensive cities to visit in the U.S. is Park City. Park City is world-famous for its skiing resorts, which are primarily active during the winter season. However, many tourists also visit the city for its beauty, open air concert venues, and festivals.
8. Seattle, Washington
Average Basic Cost Per Person Per Day: $364
Seattle has a total of 1392 attractions and welcomes around 33.9 million tourists in 2022. Some of its famous tourist attractions include Chihuly Garden and Glass, Kerry Park, and Washington State Ferries.
7. Charleston, South Carolina
Average Basic Cost Per Person Per Day: $369
Charleston has a population of 151,612 people and is known for its cobbled streets, horse-drawn carriages and Victorian Style houses. Its museums and art galleries attract many tourists from around the globe.
6. Orlando, Florida
Average Basic Cost Per Person Per Day: $371
Orlando attracts many travelers because of its theme parks and tourist-friendly destinations like Disneyland, Universal Studios, and the Wizarding World of Harry Potter. It welcomed 74 million visitors in 2022. Orlando is number six on our list of the 30 most expensive cities to visit in the U.S.
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Disclosure: None. 30 Most Expensive Cities to Visit in the US is originally published on Insider Monkey.