Posts Tagged ‘AAA Travel Expert’

Heather HunterOptimistic Americans dusting off credit cards for a Fourth of July vacation.

ORLANDO, Fla., (June 26, 2014) – AAA Travel projects 41 million Americans will journey 50 miles or more from home during the Independence Day holiday weekend, a 1.9 percent increase from the 40.3 million people who traveled last year and a nearly 14 percent increase compared to the Memorial Day holiday weekend.  The majority of travelers will be celebrating their freedom with a road trip, with more than eight in 10 (34.8 million) choosing to travel by automobile, the highest level since 2007.  The Independence Day holiday travel period is defined as Wednesday, July 2 to Sunday, July 6.
Highlights from 2014 Independence Day Travel Forecast include:

  • Willingness to take on credit card debt, not an increase in income, is responsible for the increase in consumer spending.
  • Nearly five million more Americans are expected to travel for Independence Day than for Memorial Day.
  • Travel volume for Independence Day has grown four out of the past five years and is expected to be more than six percent higher than the average of the past 10 years.
  • Holiday air travel is expected to increase one percent to 3.1 million travelers from 3.07 million last year.
  • Travelers will encounter airfares five percent lower than last year and car rental costs that remain consistent with last year at $58.
  • Hotel rates at AAA Two Diamond hotels are 15 percent higher than last year and Three Diamond hotels are nine percent more.

Additional Resources

“With school out for summer, the Fourth of July holiday is typically the busiest summer travel holiday, with five million more Americans traveling compared to Memorial Day weekend,” said AAA Chief Operating Officer Marshall L. Doney. “In line with tradition, most travelers are celebrating their newfound summer freedom with an all-American road trip.”

An increase in consumer spending is primarily due to increasing credit, rather than rising incomes.  Consumers have been hesitant to add to their credit card balances the past several years, but continued improvements in the employment picture and rising home values means they are starting to feel more comfortable taking on debt. In addition to consumer spending, a boost in consumer confidence and the employment outlook are driving more Americans to take a road trip.

“Steady improvement in the economy has spurred increased consumer confidence and spending,” continued Doney.  “Optimistic Americans are more willing to take on debt this year, dusting off their credit cards to pay for a much-needed Independence Day getaway.”

Travelers likely to pay most expensive Independence Day gas prices in six years

AAA expects the majority of U.S. drivers likely will pay the highest gas prices for Independence Day since 2008. Today’s national average price of gas is about 20 cents per gallon more expensive than the average on July 4, 2013, which was $3.48 per gallon. In recent years gas prices have declined in the weeks leading up to Independence Day, but this has not occurred this summer due to higher crude oil costs as fighting intensifies in Iraq. AAA does not believe that high gas prices will have a significant impact on the number of people traveling, but it could result in some consumers cutting back on dining, shopping or other trip activities. AAA provides the latest gas prices for the nation, states and metro areas at FuelGaugeReport.AAA.com.

Travel expenses mixed

According to AAA’s Leisure Travel Index, hotel rates for AAA Three Diamond lodgings are expected to increase nine percent from one year ago with travelers spending an average of $178 per night compared to $164 last year. The average hotel rate for AAA Two Diamond hotels has risen 15 percent with an average cost of $137 per night.

Weekend daily car rental rates will average $58, the same as last year. Airfares have declined five percent with the average round-trip, discounted fare for the top 40 U.S. routes costing $215, down from $228 last year.

AAA offers digital travel planning resources

AAA’s digital tools for travel planning ‘on the go’ include eTourBook guides for tablets and smartphones, available free to members at AAA.com/ebooks. Choose from 101 top North American destinations including city titles, like the award-winning Las Vegas, regions, like Wine Country, and National Parks.

The free AAA Mobile app for iPhone, iPad and Android uses GPS navigation to help travelers map a route, find current gas prices and discounts, book a hotel, and access AAA roadside assistance. Members using the iPad version can access interactive Top Destinations travel guides for 10 popular cities. Travelers can learn more at AAA.com/mobile.

On AAA.com, travelers can find thousands of AAA Approved and Diamond Rated hotels and restaurants using AAA’s TripTik Travel Planner or the searchable Travel Guides at AAA.com/Travel. Every AAA Approved establishment offers the assurance of acceptable cleanliness, comfort and hospitality, and ratings of One to Five Diamonds help travelers find the right match for amenities and services.

AAA’s projections are based on economic forecasting and research by IHS Global Insight. The Colorado-based business information provider teamed with AAA in 2009 to jointly analyze travel trends during the major holidays. AAA has been reporting on holiday travel trends for more than two decades. More information including an infographic for the AAA / IHS Global Insight 2014 Independence Day Travel Forecast can be found here.

As North America’s largest motoring and leisure travel organization, AAA provides more than 54 million members with travel, insurance, financial and automotive-related services. Since its founding in 1902, the not-for-profit, fully tax-paying AAA has been a leader and advocate for the safety and security of all travelers. AAA clubs can be visited on the Internet at AAA.com.

With 93.3 million Americans expected to take a trip this holiday season, holiday travel to increase by 1.6 percent

ORLANDO, Fla., (Dec. 13, 2012)AAA projects 93.3 million Americans will journey 50 miles or more from home during the year-end holidays, an increase of 1.6 percent over the 91.8 million people who traveled last year. This increase brings holiday travel figures to within half a million of the decade high mark seen during the 2006/2007 season. The year-end holiday travel period is defined as Saturday, Dec. 22 to Tuesday, Jan. 1, 2013.

Highlights from AAA 2012/13 Year-End Holiday Travel Forecast include:

  • Year-end holiday travelers to total 93.3 million, an increase of 1.6 percent from the 91.8 million that traveled last year
  • Ninety percent of travelers (84.4 million) to travel by automobile, representing 26.7 percent of the total U.S. population
  • Holiday air travel expected to increase 4.5 percent to 5.6 million travelers from 5.4 million in 2011
  • Median spending expected to increase almost six percent to $759, compared to $718 in 2011 with transportation costs consuming about 29 cents of every travel dollar.
  • Average distance traveled to increase to 760 miles round-trip from 726 miles, an expected result with an increase in air travelers
  • Travel volumes for the year-end holidays are generally very stable, only once in the past decade has there been a change in travel volume greater than five percent

Additional Resources

“The year-end holiday season remains the least volatile of all travel holidays as Americans will not let economic conditions or high gas prices dictate if they go home for the holidays or kick off the New Year with a vacation,” said AAA President and CEO Robert Darbelnet. “Primary economic indicators all show modest improvement from last year and AAA is projecting an increase in the number of Americans stuffing their stockings with airline tickets and hotel reservations.”

“As we enter the New Year, one unknown for travel is the looming ‘fiscal cliff’ and the resulting uncertainty related to near-term tax and benefit changes.  Having these items unresolved complicates many travelers’ ability to develop an accurate household budget as they plan for future spending and saving decisions.  It is important that Congress and the President work together to quickly resolve the situation for the good of the nation,” said Darbelnet.

Impact of gasoline prices on travel plans

AAA estimates the national average price of gasoline will slowly drop through the end of the year and average between $3.20-3.40 a gallon by New Year’s Day. Gas prices dropped about 50 cents a gallon on average from September through early December, but remain at record highs for this time of year. AAA does not expect gas prices to have a major impact on travel volume, but consumers could have more money to spend on holiday shopping, dining and entertainment if prices drop through December as expected.

Automobile travel remains dominant mode of transportation, air travel increases

Approximately 90 percent of travelers (84.4 million) plan to travel by automobile this holiday season. This is a 1.3 percent increase over the 83.3 million people who traveled by auto last year.  Air travel is expected to increase 4.5 percent as six percent of travelers or 5.6 million will take to the skies.

Those traveling by air will find lower airfares according to AAA’s Leisure Travel Index.  For the year-end holiday period the average lowest round-trip rate is $203 for the top 40 U.S. air routes, a three percent decrease from last year. Approximately 3.3 million travelers will choose other modes of transportation, including rail, bus and cruise ship.

Hotel rates to increase slightly, car rental rates increase 41 percent

According to AAA’s Leisure Travel Index, year-end holiday hotel rates for AAA Three Diamond lodgings are expected to increase two percent from a year ago, with travelers spending an average of $129 per night compared to $126 last year. Travelers planning to stay at AAA Two Diamond hotels can expect to pay three percent more, at an average cost of $95 per night.  Daily car rental rates will average $56, compared to $40 last year.

Average travel distance increases

According to the survey of intended travelers, the average distance traveled by Americans during holiday period is expected to be 760 miles, further than last year when travelers planned to log 726 miles.

Median spending up nearly six percent; top activities are dining and spending time with loved ones

Median spending is expected to be $759, a six percent increase compared to the expected median spending of intended holiday travelers ($718) last year.

Dining (67 percent) and spending time with family and friends (66 percent) and are the most popular activities planned by travelers. It is not surprising that during holiday season shopping is the third most popular activity with 57 percent expecting to shop. More than one-third (34 percent) of holiday travelers plan to sightsee during their trips.

AAA offers digital travel planning resources

AAA’s digital tools for travel planning ‘on the go’ include eTourBook guides for 101 top North American destinations, available free to members at AAA.com/ebooks. Choose from city titles, like the award-winning Las Vegas, regions, like Wine Country, and National Parks.

The free AAA Mobile app for iPhone, Android and iPad uses GPS navigation to help travelers map a route, find current gas prices and discounts and access AAA roadside assistance. Travelers can learn about the AAA Mobile app and AAA Mobile Web at AAA.com/mobile.

On AAA.com, travelers can find thousands of AAA Approved and Diamond Rated hotels and restaurants using AAA’s TripTik Travel Planner or the searchable Travel Guides at AAA.com/Travel. Every AAA Approved establishment offers the assurance of acceptable cleanliness, comfort and hospitality, and ratings of One to Five Diamonds help travelers find the right match for amenities and services.

AAA’s projections are based on economic forecasting and research by IHS Global Insight. The Colorado-based business information provider teamed with AAA in 2009 to jointly analyze travel trends during the major holidays. AAA has been reporting on holiday travel trends for more than two decades. The complete AAA / IHS Global Insight 2012/13 Year-end Holiday Travel Forecast can be found here.

As North America’s largest motoring and leisure travel organization, AAA provides more than 53 million members with travel, insurance, financial and automotive-related services. Since its founding in 1902, the not-for-profit, fully tax-paying AAA has been a leader and advocate for the safety and security of all travelers. AAA clubs can be visited on the Internet at AAA.com.

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