View of signage for Deetjen's Big Sur Inn (on CA-Rte 1), Big Sur, California, March 1983. On the National Register of Historic Places, it opened in the mid 1930s. (Photo by Barbara Alper/Getty Images)
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U.S. road travel is rising again in 2026, and the effects are showing up along the nation’s highways as hotel prices climb in key markets.
Data from AAA shows that Americans continue to favor driving for shorter regional trips, a shift driven by higher airfares, ongoing airport delays, and the flexibility of personal vehicles. That preference is increasing demand for roadside accommodations, particularly near major interstates and well-traveled corridors.
Hotel analytics firm STR (formerly Smith Travel Research) says average daily rates are rising across many leisure-aimed markets. While increases vary by region, drive-to destinations and highway-adjacent properties are seeing consistent upward pressure on pricing, especially during peak travel periods.
Occupancy levels are also strengthening the price points – a lot of full houses in a lot of inns.
Parents looking at map on summer road trip and figuring out where to go
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STR data indicates that weekend occupancy rates in many U.S. markets have improved compared to the same period last year, with particularly strong prices in states that attract high volumes of regional travelers including Florida, Texas, and Arizona. These gains are being driven in part by increased road leisure travel and shorter booking windows - people making last-minute plans as opposed to blocking out a hotel months ahead.
The trend is benefiting both independent properties and major hotel operators. Companies such as Marriott International, Hilton Worldwide, and Choice Hotels International have all reported seeing higher demand from travelers seeking convenience and predictable pricing. For a bargain, hunt out lesser-known brands.
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One factor supporting higher rates, too, is limited new supply. Hotel development has slowed in recent years due to higher borrowing costs and increased construction expenses, says the American Hotel & Lodging Association. With fewer new properties entering the market, existing hotels have greater flexibility to jack up prices when people start flying less.
Traveler demographics are also shifting. Research from the U.S. Travel Association indicates that higher-income households are increasingly choosing to drive rather than fly for regional leisure trips. These travelers tend to prioritize convenience, brand familiarity and amenities such as free breakfast, parking and reliable Wi-Fi, all factors that support higher nightly rates.
Booking behavior is evolving as well. Industry data shows that more travelers are making reservations closer to their arrival dates, often within a few days of travel. This trend allows hotels to adjust rates in real time based on demand, particularly in high-traffic areas where rooms can fill quickly during weekends and holiday periods.
In the end, however, supply meets demand, with the priciest hotels typically seen during spring break, summer vacation months, and major holiday weekends. Everything is going up because people want to drive, and are put off by the fiasco that is airport security.
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