In this article, we shall discuss the 30 most affordable winter vacations in the US. To skip our detailed analysis of some of the innovation taking place within the tourism industry in 2023, go directly and see 10 Most Affordable Winter Vacations in the US.
According to Bloomberg, the global tourism industry will reach valuations of more than $15.5 trillion and will make up to 11.6% of the global economy by 2033. This represents a 50% growth over its $10 trillion valuation in 2019, when the industry made up merely 10.4% of the global GDP. Within the incoming decade, the travel industry is expected to employ more than 430 million people globally, accounting for roughly 1 of every 9 jobs across the world. Although experts expect the global GDP to grow on an annualized basis of more than 2.5% per annum, the travel sector is expected to post growth of 5.1%. As of 2023, the largest market for the industry globally is the United States which churns out more than $2 trillion in total economic output each year and houses some of the most affordable winter vacations. However, according to the report, China is increasingly well positioned to dethrone the United States within the next ten years and emerge as one of the largest markets for inbound tourism in the world. For more on the global tourism outlook, check out our coverage of the 25 Best US Cities for Solo Female Travelers.
Before the onset of the COVID-19 pandemic in 2019, Chinese travelers represented more than 14% of global outbound travel spending. However, extended border restrictions and passport and visa processing hold-ups have resulted in a delayed return to international tourism for Chinese travelers. A recent report by Morgan Stanley highlights that many of the hurdles restraining Chinese tourists have been sorted and tourists from mainland China are expected back into the market in droves. This has caused tourism companies like Booking Holdings Inc. (NASDAQ:BKNG), Airbnb Inc. (NASDAQ:ABNB), and Expedia Group Inc. (NASDAQ:EXPE) to ramp up investments into the Asia-Pacific region. There has been a marked increase in luxury retail, travel, hotels, and restaurant businesses especially in the most affordable winter vacations in the US. By 2033, Bloomberg estimates China’s travel sector to contribute more than $4 trillion to the global economy and that it will constitute more than 14% to the Chinese economy. By contrast, the US is expected to lag behind, contributing merely $3 trillion to the global GDP.
The Promise of AI: An Analysis
Technological innovation and adoption is the hallmark of an industry on the rise and the global tourism industry is no different. According to an article by McKinsey and Company, innovation in the development of artificial intelligence, including generative AI (gen AI) and machine learning (ML), are equipping tourism companies like Booking Holdings Inc. (NASDAQ:BKNG), Airbnb Inc. (NASDAQ:ABNB), and Expedia Group Inc. (NASDAQ:EXPE) to deliver increasingly personalized and customized solutions to consumers, allowing them to tailor their experiences according to their personal preferences, requirements, budgets, and overall orientations. This rampant increase in technological innovation within the industry is opening the door for tourism companies to reevaluate their interactions and day-to-day operational capabilities to better cater to customers, develop effective products and services, and efficiently manage operations. Furthermore, consumers have not been left entirely bereft of advancements in AI and have transformed expectations accordingly. Since 2014, average duration spent on digital devices has skyrocketed by more than 75 percent, with the trend only increasing during the pandemic as online interactions became a necessity.
However, the report also points out that traditional travel is unlikely to fade any time soon as tourism will always remain a largely human-centric experience. This opens up an enormous opportunity for the industry to refine modern travel to adapt to the digital age. Currently, travel operators tend to fall short of satisfying baseline expectations of timing and quality, with more than 85% of American tourists complaining that they faced at least one travel-related issue in the first half of 2023, according to a survey conducted by Bankrate. Although tourists have traditionally tended to ignore or overlook customer-service issues in the past, expectations have begun to rise and to acceptance of inconvenience appears to be wearing thin. Whilst it is true that larger companies are better equipped to develop in-house AI capabilities, smaller enterprises are well-positioned to benefit from any robust ecosystem of service providers which makes new technologies accessible.
Gen AI is also carving out new avenues to augment and scale language, creativity, and aesthetic capabilities. According to McKinsey, gen AI is projected to generate more than $4 trillion in annual value across industries. However, within the context of the tourism industry, gen AI could make for a digital assistant which provides effective solutions to consumers across their travel journeys. The digital assistant may provide customized tour itineraries during booking to the most affordable winter vacations in the US, recommend tailored experiences predicated on preferences and budget constraints, and aid in streamlining unexpected glitches in the booking process. However, AI cannot shoulder the technological revolution within the tourism industry on its own and must depend on established digital technology to facilitate companies in delivering on their commitments. The magnitude of these newfound technological synchronizations makes it more convenient for travelers to navigate the travel space digitally. To read more on innovation within the global tourism industry, check out our article on the 40 Most Visited Cities in the World in 2023.
Travel Startups: An Overview
Startups play a critical role in driving innovation which streamlines experiences for consumers, businesses, and industries. However, according to a report by McKinsey, startups within the travel industry remain grossly underfunded when pit against startups from other industries. The report highlights that over the past decade and a half, the global tourism industry received less than one percent of overall funding reserved for startups despite the fact that travel constituted more than ten percent of the global GDP in 2019. Despite these unprecedented funding complications, travel companies received more than $27 billion in investments over the two year span from 2020 to 2022. Although relatively few tourism startups are attracting any significant investment of late, when they do, they tend to secure an exorbitant amount. Furthermore, later-stage investment has constituted much of the startup funding between 2020 and 2022. This highlights an interesting trend in that investors may want to lend extended support to category leaders which have achieved a considerable amount of scale.
A high contingent of all startup funding which is directed to the tourism industry has largely been reserved for the hospitality sector, especially in the most affordable winter vacations in the US. The hospitality sector remains one of the most vibrant and dynamic segments within the larger travel industry, and has remained at the forefront of innovation. By 2030, McKinsey estimates that the best hotels will adapt to provide incredibly personalized guest experiences, sustainable and climate-friendly travel alternatives, and lucrative employment opportunities. The increasing interest of investors in hospitality startups is largely owing to the rising popularity of short-term rentals. Tourism companies like Booking Holdings Inc. (NASDAQ:BKNG), Airbnb Inc. (NASDAQ:ABNB), and Expedia Group Inc. (NASDAQ:EXPE) have accommodated short-term rentals within their portfolio to capitalize on the tailwinds associated with the hospitality industry.
Photo by Glade Optics on Unsplash
Our Methodology
To compile our list of the 30 most affordable winter vacations in the United States, we decided to use a variety of third-party research. We first shortlisted fifty of the most visited cities in the United States during the winter months. For this, we relied on data from Allianz Partners, which top travel destinations in the U.S. between the period of 2017-2022. Subsequently, 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 December 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 highest to lowest.
To read about luxury travel options within the United States, check out our coverage of the 30 Most Expensive Cities to Visit in the US.
30 Most Affordable Winter Vacations in the US
30. New York City, New York
Average Basic Cost Per Person Per Day: $398
New York City is known for its tourist attractions, especially Times Square and Central Park. It is also one of the most affordable winter vacations in the US. The city offers activities which attract all kinds of tourists.
29. Worcester, Massachusetts
Average Basic Cost Per Person Per Day: $369
Worcester offers multiple activities during winters including snowshoeing, sledding, and tubing at minimum rates. For indoor activities, visitors can also take a tour of the Worcester Historical Museum.
28. Santa Fe, New Mexico
Average Basic Cost Per Person Per Day: $354
Santa Fe is an inexpensive destination for tourists during winter. The city is known to be the country’s third-largest art market and attracts many visitors to more than 300 art galleries. The city is also home to the famous Santa Fe Opera.
27. San Francisco, California
Average Basic Cost Per Person Per Day: $349
San Francisco is an affordable city to visit during the winters and attracts tourists who prefer art galleries, bike rides across the city, or live entertainment shows. The temperature during the winter months generally remains mild.
26. San Diego, California
Average Basic Cost Per Person Per Day: $341
San Diego is extremely affordable during winters as compared to the summers. Tourists can visit attractions like Balboa Park, Timken Art Museum, and different botanical gardens.
25. Memphis, Tennessee
Average Basic Cost Per Person Per Day: $334
Memphis offers its visitors multiple indoor activities like visits to the Pink Palace or sightseeing at Graceland. It is also known to be the ideal destination to enjoy barbecue dinners during the winters.
24. Indianapolis, Indiana
Average Basic Cost Per Person Per Day: $325
Indianapolis offers a wide range of affordable activities to its tourists during winters including ice skating, visiting the Dasher’s Lightshow, sledding, or skiing. It attracts travelers of all ages and is home to the Children’s Museum of Indianapolis, making it one of the most affordable winter vacations in the US.
23. Savannah, Georgia
Average Basic Cost Per Person Per Day: $320
Savannah is an inexpensive destination during winters as the visitors can take a self-guided tour of the city free of charge. Some of the tourist attractions include the General Casimir Pulaski monument and Chippewa Square.
22. Phoenix, Arizona
Average Basic Cost Per Person Per Day: $313
Phoenix attracts an exorbitant amount of tourist each winter due to the mild temperature. The city is home to many tourist attractions including Echo Canyon and Desert Botanical Garden. It also hosts the Lights of the World Festival during the winters.
21. Minneapolis, Minnesota
Average Basic Cost Per Person Per Day: $312
Minneapolis is an ideal destination for winters as it provides its visitors with a range of outdoor activities, which includes visiting the Chain of Lakes, and indoor attractions like the Mall of America and the indoor Nickelodeon Universe Amusement Park.
20. Nashville, Tennessee
Average Basic Cost Per Person Per Day: $306
Nashville attracts numerous tourists by offering them a budget-friendly alternative to visit historic sites during winters. Some attractions include the Music City Walk of Fame Park or Centennial Park and Gardens.
19. Omaha, Nebraska
Average Basic Cost Per Person Per Day: $303
Omaha winters are generally laden with snow. However, it still welcomes many tourists because of winter attractions like the Lauritzen Gardens, Henry Doorly Zoo and Aquarium, and the Old Market District.
18. San Antonio, Texas
Average Basic Cost Per Person Per Day: $294
San Antonia is a vacation destination that can be enjoyed on a low budget. In the city, the tourists can enjoy views from the San Antonio River Walk and visit the Alamo.
17. Kansas City, Missouri
Average Basic Cost Per Person Per Day: $291
Kansas City provides its tourists with a wide range of activities during winters. The city is mainly known for barbecue and jazz music and is also home to a theme park called World of Fun.
16. Columbus, Ohio
Average Basic Cost Per Person Per Day: $289
Columbus attracts many visitors during winters because it is low-budget and is home to many attractions and activities including Franklin Park Conservatory, Columbus Zoo and Aquarium, and Segway Holiday Lights Tour.
15. Los Angeles, California
Average Basic Cost Per Person Per Day: $278
Los Angeles has numerous affordable hotels and offers reasonable flights, making it one of the most most affordable winter vacations in the US. Some popular tourist spots in the city include Disneyland, Santa Monica Pier, or the Hollywood Walk of Fame
14. Seattle, Washington
Average Basic Cost Per Person Per Day: $265
Seattle is one of the most affordable winter vacation destinations in the US. Tourists can visit Seattle’s top culinary neighborhoods or the farmer markets.
13. Portland, Oregon
Average Basic Cost Per Person Per Day: $264
Portland is an ideal winter destination for travelers who are looking for affordable options. Tourists can find budget-friendly food options and free attractions, including Powell’s City of Books.
12. Austin, Texas
Average Basic Cost Per Person Per Day: $257
Austin is one of the most affordable winter vacation destinations and attracts many tourists because of its strong music and food culture. The tourists can also find food trucks around the city on a low budget.
11. Oahu, Hawaii
Average Basic Cost Per Person Per Day: $251
Oahu is one of the best winter vacation destinations because of its pleasantly warm weather even during peak winter season. The city offers tourists with many attractions and activities including white-sand beaches, hiking, and the Pearl Harbor National Memorial.
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Disclosure: None. 30 Most Affordable Winter Vacations in the U.S. is originally published on Insider Monkey.
