The Rainbow Dollar Is in Retreat: Why U.S. Destinations Are Trending Downwards This Year

July 08 2025

by Marc Dedonder

For decades, LGBTQ+ travelers have fueled local economies across the United States. From PRIDE celebrations to destination weddings, our “LGBTQ+ Dollars” have brought billions to cities eager to court queer tourism. 

But new intel from our data team suggests that the “Rainbow Dollar” is at risk. 

In recent months, bookings on our platform have sharply declined in several U.S. cities once considered rising queer destinations. Among the steepest drops:

Salt Lake City: ↓ 72%

Austin: ↓ 44%

Phoenix: ↓ 33%

Cathedral City (near Palm Springs): ↓ 51%

But the shift isn’t just from the U.S. based LGBTQ community. International travel to the U.S. for PRIDE season also took a hit:

Bookings from Canada: ↓ 66%

Bookings from Europe: ↓ 32%

So, where are LGBTQ+ travelers going instead? Cities in Portugal, Colombia, and Greece saw increased activity. To us, these destinations are seen as safer, more inclusive, and politically stable for queer visitors.

Known for its progressive laws and welcoming cities like Lisbon and Porto, Portugal offers strong legal protections and a vibrant queer culture. With legal same-sex marriage and growing LGBTQ+ visibility in cities like Bogotá and Medellín, Colombia feels increasingly inclusive, and Greece has rapidly expanded LGBTQ+ rights and offers a lively, welcoming scene in Athens and the islands, especially Mykonos.

The reason behind the retreat? Safety and legislation are now going to outweigh sun, parties and nightlife.

The recent shutdown of a national LGBTQ+ youth suicide hotline in the United States, combined with a Supreme Court decision allowing healthcare discrimination, signals to many in our community that even historically “friendly” places may no longer be safe havens. Infact, our latest user survey showed that 40% of travelers said they now screen destinations for local LGBTQ+ laws before booking.

The LGBTQ+ community will go where we feel safe and respected. Visibility isn’t enough, and we think that protection under the law matters a great deal too. 

This is a wake-up call for U.S. cities that once relied on LGBTQ+ travelers to boost tourism. The Rainbow Dollar doesn’t just show up for parades, it follows policy trends and governance. In fact, research from the Williams Institute at UCLA found that same-sex weddings alone have added $6.8 billion to local economies, with over $2.3 billion in the South.

The message is clear: our community is paying attention - and we are spending accordingly. As legislation regresses, queer travelers are quietly closing their wallets, turning instead to destinations that don’t just wave a rainbow flag, but actually protect our rights.

Explore our LGBTQ+ Destination Index and discover where travelers are feeling safe and seen in 2025.