Almost two-thirds of respondents to Kayak.com planned to be tourists in their home states or within a three-hour drive this summer, reported the search engine that calls itself the world’s largest.

“Attractions appealing most to travelers looking to stay closer to home include beaches (29%), mountains (20%), national parks (15%) and lakes (13%).  More than 60 percent of Kayak.com users had yet to book their summer vacations,” the company says. 

Meanwhile, concerns about a “bummer summer” are forcing online sites like Expedia and Priceline to offer creative and sometimes riskier new incentives, reported Business Week. These include rolling back booking fees and offering passengers more guarantees.

“It’s already looking like a bummer summer for the travel industry. At the start of the season the Travel Industry Assn. predicted a 1.2% decline in trips domestically, but that now looks overly optimistic,” the site reported.  

More than two-thirds in the Kayak survey say they will save money on a beach vacation by traveling during hurricane season, although almost half will opt for trip insurance to protect their investment.
"Kayak.com users work too hard all year to forgo their annual summer vacation," said Drew Patterson, Kayak.com VP of Marketing.  "But with gas prices flirting with $4, travelers are thinking about new destinations to ensure their families enjoy the trip.” 

Regional cities are becoming more attractive.

There’s also an increase in queries for destinations such as Atlanta, Richmond, Austin and San Diego.

Regional beaches that might have been overlooked for the Caribbean will be packed all summer, according to hotel searches, says Kayak.
The summer’s pessimistic outlook includes factors such as rising gas prices and airlines cutting back on flights and raising fares.

One result: forcing online travel agencies to get even more aggressive, rolling back booking fees and offering passengers more guarantees.

“We’ve eliminated fees on airline tickets, reduced fees on hotel rooms,” said Priceline.com Chief Executive Jeffrey Boyd. “We think customers are concerned about high prices and we’re trying to give them a little bit of a discount.”

Online agencies are not only are they wrestling with cash-strapped consumers, they’re also competing against airline, cruise line, and hotel companies that have accelerated their online marketing efforts in recent years.

These “supplier” sites offer bonus frequent-flier miles and other perks for booking directly with them.