It is true that a team can travel farther if the state gives you permission.
As for reasons to travel... I agree that you can find plenty of great competition around here. I want to take Goddard to a Texas tournament for various reasons. Although we usually get all of the varsity types to go out for wrestling, it's a good recruiting tool for us. Kids may go out in middle school or as freshman because they know we do some fun trips. I'll bet there are plenty of tough kids in the state that would go out if they took a fun trip with their wrestling family. Staying overnight with your team in a hotel brings you closer as a team.
We also look for these tournaments for the same reason I encourage kids to wrestle in Vegas or Fargo or summer camps. Sure they may get their butts kicked, but they will come back with a new attitude. They see new styles and implement them. They get better!
Finally, it breaks up the monotony of the season. If you can coach a team through January and mid-February without the fight to keep them motivated you are a better coach than me. We have a high before the first meet, before our trip to Blue Valley NW and regionals. If we add to the "highs" of the season, we'll be more focused when it counts.
I'm sure there are other reasons to travel or not to travel, but these are some of ours. If we could afford the trip to Florida, we'd be there, too.
