We investigate how the complexity of Euclidean TSP for point sets $P$ inside the strip $(-\infty,+\infty)\times [0,δ]$ depends on the strip width $δ$. We obtain two main results. First, for the case where the points have distinct integer $x$-coordinates, we prove that a shortest bitonic tour (which can be computed in $O(n\log^2 n)$ time using an existing algorithm) is guaranteed to be a shortest tour overall when $δ\leq 2\sqrt{2}$, a bound which is best possible. Second, we present an algorithm that is fixed-parameter tractable with respect to $δ$. Our algorithm has running time $2^{O(\sqrtδ)} n + O(δ^2 n^2)$ for sparse point sets, where each $1\timesδ$ rectangle inside the strip contains $O(1)$ points. For random point sets, where the points are chosen uniformly at random from the rectangle $[0,n]\times [0,δ]$, it has an expected running time of $2^{O(\sqrtδ)} n$. These results generalise to point sets $P$ inside a hypercylinder of width $δ$. In this case, the factors $2^{O(\sqrtδ)}$ become $2^{O(δ^{1-1/d})}$.

To appear in Discrete & Computational Geometry. See also earlier version in Proceedings 36th International Symposium on Computational Geometry (SoCG 2020)