An up and down economy, fee fatigue, higher fares and travel frustration top causes for the decline

ORLANDO, Fla., (May 22, 2013) – AAA Travel projects 34.8 million Americans will journey 50 miles or more from home during the Memorial Day holiday weekend, a 0.9 percent decrease from the 35.1 million people who traveled last year.  The anticipated decline in holiday travel is predominately due to a decline in air travel of eight percent, fee fatigue among travelers and a waffling economy. The Memorial Day holiday travel period is defined as Thursday, May 23 to Monday, May 27.

Additional Resources

• REPORT: 2013 AAA Memorial Day Travel Forecast
• INFOGRAPHIC: 2013 AAA Memorial Day Travel Forecast

“AAA is forecasting Memorial Day travel  to be slightly lower this year due to an to an up and down economy, the impact of the end of the payroll tax holiday on working families and a 30-year low in the percentage of working age people in the workforce,” said AAA President and CEO Robert L. Darbelnet. “Additionally, economic growth in the first quarter was strong, but the impact of the sequester is now beginning to be felt resulting in reduced economic growth expectations.  These and other variables are expected to result in few travelers this holiday. ”

Highlights from 2013 Memorial Day Travel Forecast include:

• Memorial Day holiday travelers to total 34.8 million, a decrease of 0.9 percent from the 35.1 million who traveled last year
• Eighty-nine percent of travelers (31.2 million) to travel by automobile, an increase from 31.1 million last year
• Holiday air travel expected to decrease eight percent to 2.3 million from 2.5 million in 2012
• Memorial Day holiday travel volume is expected to remain above the 12-year historical average of 34.7 million
• Median spending is expected to decrease more than six percent to $659, compared to $702 in 2012 with transportation costs consuming about 28 cents of every travel dollar.
• Travelers intend to journey an average of 690 miles which is higher than last year’s average of 642 miles

“The primary driver of the decline in holiday travelers is an eight percent decrease in the number of people expected to take to the skies this holiday,” Darbelnet said. “American travelers are experiencing fee fatigue and frustration with everything from higher fares to airport security.  As a result, many are choosing road travel in higher numbers due to the lower cost and convenience it offers. ”

Automobile Travel Only Mode of Transportation to Expect Increase

Approximately 31.2 million people plan to drive to their destination, an increase of 0.25 percent from the 31.1 million who drove last year.  Almost nine out of ten holiday travelers (89 percent) will take to the nation’s roadways during the Memorial Day weekend, keeping automobile travel in the traditional lead as the dominant mode of holiday travel transportation.

Impact of gasoline prices on travel plans

A survey of intended travelers found that gasoline prices would have no impact on plans for 62 percent of travelers. Of the remaining 38 percent of travelers who said gas prices would impact their travel plans, 27 percent plan to economize in other areas.  Eight percent are planning to take a shorter trip and three percent will travel by an alternate mode of transportation.

Since national gas prices peaked at the end of February, motorists nationwide have felt welcome relief at the pump. However, current gas prices are in line with this time last year and not expected to have an effect on travel plans.

Air Travelers to decline by eight percent

More than 2.3 million leisure air travelers (more than seven percent of holiday travelers) will arrive at their destination by air, an eight percent decrease from last year’s 2.5 million air travelers.  The remaining four percent of holiday travelers are expected to travel by other modes, including rail, bus and watercraft.

Average travel distance increases

According to the survey of intending travelers, the average distance traveled by Americans during the Memorial Day holiday weekend is expected to be 690 miles, which is 48 miles more than last year’s average of 642 miles. Generally a greater distance traveled also means there will be an increase in air travel, but this year is the exception as air travel is expected to decrease eight percent. It appears auto travelers will be taking longer road trips as travelers expect fuel to consume a larger share of their travel budget. Last year the shortest trips, those of less than 150 miles, made up 21 percent of total travel, this year the shortest trips make up only 13 percent of the total. Those travelers who will take to the skies have shifted towards longer-haul flights.

Median spending is expected to decrease as travelers prioritize family and friends

Median spending during the Memorial Day holiday weekend is expected to be $659, six percent less than the $702 median spending last year. Transportation is expected to consume approximately 28 cents of every dollar. Travelers expect to spend 22 percent on food and beverage and 20 percent on lodging.

During the holiday weekend, more than half of intending travelers will plan to partake in visiting with friends/family (59 percent) and dining (55 percent). Other popular activities include shopping (44 percent), going to the beach (32 percent) and touring and sightseeing (27 percent).

Car rental rates highest in four years, hotel rates rise modestly

According to AAA’s Leisure Travel Index, hotel rates for AAA Three Diamond lodgings are expected to increase over four percent from one year ago with travelers spending an average of $166 per night compared to $160 last year. The average hotel rate for AAA Two Diamond hotels remained unchanged with an average cost of $120 per night. Weekend daily car rental rates will average $43, 19 percent more than last year and the highest rate recorded for the holiday since 2009.

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, book a hotel,  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 Memorial Day 2013 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.

ORLANDO, Fla., (May 21, 2013) – As everyone makes plans to head  to the beach or attend celebrations around the Memorial Day Holiday weekend, AAA strongly encourages to arrange a safe ride home before they partake in any festivities.

AAA works year round to educate motorists about driving practices that will help keep them safe and reduce traffic-related crashes and the injuries that can result.  PreventDUI.AAA.com is an online resource offering impaired driving facts, transportation alternatives and expert advice.  Once there, AAA encourages visitors to Take the Pledge to drive drug and alcohol-free.

While not a nationwide program, a number of AAA clubs offer Tow-to-Go or Tipsy Tow service on select dates for members and nonmembers. This service is not available everywhere. AAA strongly encourages family and friends to pick a designated driver before they head out for any Memorial Day celebrations.

*Please note availability is subject to change without notice

The following AAA Clubs offer Tipsy Tow/ Tow to Go programs for Memorial Day Holiday Weekend:

• The Auto Club Group (Statewide in Florida and Georgia and Tennessee. Program is called “Tow-to-Go”)
• AAA Arizona (statewide)
• AAA New Jersey Automobile Club (Morris, Essex and Union counties)
• AAA Northwest Ohio ( available in Lucas, Fulton, Wood, Henry, Williams, Defiance, Paulding and Ottawa counties)
• AAA South Dakota (Sioux Falls, Rapid City, Mitchell and Yankton)
• AAA Oklahoma ( Metro Tulsa, Metro Oklahoma City, Shawnee, Bartlesville, Enid, Muskogee, Ardmore, Tahlequah and Lawton )

For a comprehensive list of other community programs listed state by state, please visit AAA’s DUI Justice Link Website

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

• Infographic: Year End Travel Forecast
• Infographic: National Average Gas Prices, New Year’s Day
• Report: Year End Travel Forecast

“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.

Holiday travel continues steady climb from 2008 level with 43.6 million Americans expected to take Thanksgiving trips

ORLANDO, Fla., (Nov. 13, 2012) – AAA projects 43.6 million Americans will journey 50 miles or more from home during the Thanksgiving holiday weekend, an increase of 0.7 percent over the 43.3 million people who traveled last year. This increase marks the fourth consecutive year of growing holiday travelers since 2008 when Thanksgiving travel fell by 25 percent. The Thanksgiving holiday travel period is defined as Wednesday, Nov. 21 to Sunday, Nov. 25.

Highlights from this year’s 2012 AAA Thanksgiving Holiday Travel Forecast include:

• Thanksgiving travelers to total 43.6 million, an increase of 0.7 percent from the 43.3 million who traveled last year
• Ninety percent of travelers or 39.1 million to travel by automobile, an increase of 0.6 percent
• Holiday air travel to decline to 3.14 million travelers from 3.2 million in 2011
• Median spending expected to drop 10 percent to $498, compared to $554 last year. Spending remains consistent with historic averages as Americans continue to prioritize travel while finding ways to economize
• Average distance traveled to decline to 588 miles from 706 miles, due in part to a decrease in the number of air travelers and Americans desire to economize budgets
• Despite mild improvements in unemployment, the housing market and greater consumer optimism, the economy is still struggling to keep its head above water

Additional Resources

• 2012 AAA Thanksgiving Travel Forecast
• Infographic: National Average Gas Prices for Thanksgiving
• Infographic: Thanksgiving Travel Dates 2012
• Infographic: Total Travelers

“Thanksgiving travel hit a decade low in 2008 when only 37.8 million Americans traveled,” said AAA President and CEO Robert Darbelnet. “Since that year we have seen a steady increase in the number of travelers taking to the roads and skies for the holiday. Americans continue to find ways to economize their budgets so they can gather around the holiday table to carve the turkey.”

“While we do not yet know the full impact that Hurricane Sandy will have on travel from the Mid-Atlantic region, we do know that the impact for many Americans in that region is substantial,” continued Darbelnet.

Impact of gasoline prices on travel plans

AAA estimates the national average price of gasoline will drop to between $3.25-3.40 a gallon by the holiday, similar to last year’s average of $3.32, which was the most expensive average ever on Thanksgiving. Despite the historically high prices paid by motorists this year, the national average has declined by nearly 40 cents a gallon since early October and should continue to drop through the end of the year. The national average price of gas for Thanksgiving from 2007-2011 is $2.75 a gallon.

Wednesday before the holiday is expected to be busiest travel day

The Thanksgiving holiday is unique falling on a Thursday every year. Many people are off from work the Friday after, giving travelers the opportunity to spend more time with family and friends.   AAA asked intended travelers which days they would depart for and return from Thanksgiving Travel. Among those surveyed, the majority of travelers plan to leave the Wednesday before the holiday (45 percent) and return the following Sunday (36 percent) with another 25 percent expecting to return on Monday, Nov. 26.

Automobile travel remains dominant mode of transportation, air travel decreases

Approximately 90 percent of travelers or 39.1 million people plan to travel by automobile this Thanksgiving. This is a 0.6 percent increase over the 38.9 million people who traveled by auto last year.  Air travel is expected to decrease 1.7 percent as 3.14 million holiday travelers will take to the skies.

Those traveling by air will find lower airfares according to AAA’s Leisure travel Index.  For the Thanksgiving holiday the average lowest round-trip rate is $188 for the top 40 U.S. air routes, an 11 percent decrease from last year. Approximately 1.3 million travelers will choose other modes of transportation, including rail, bus and cruise ship.

Hotel rates relatively flat, car rental rates increase 27 percent

According to AAA’s Leisure Travel Index, Thanksgiving holiday hotel rates for AAA Three Diamond lodgings are expected to decrease one percent from a year ago, with travelers spending an average of $143 per night compared to $145 last year. Travelers planning to stay at AAA Two Diamond hotels can expect to pay one percent more, at an average cost of $104 per night.  Weekend daily car rental rates will average $47, compared to $37 last year.

Average travel distance decreases

According to the survey of intended travelers, the average distance traveled by Americans during the Thanksgiving holiday weekend is expected to be 588 miles, which is a decline of 16.7 percent from last year when travelers planned to log 706 miles.

Median spending down ten percent; visiting family, dining and shopping top activities

Median spending is expected to be $498, a 10 percent decrease compared to the expected median spending of intended holiday travelers ($554) in 2011.

While spending time with friends and relatives and dining are primary activities for nearly all holidays, it is even more relevant for Thanksgiving travelers. Therefore it is not surprising that spending time with family and friends (75 percent) and dining (56 percent) are the most popular activities planned by travelers. Despite lower median spending, half of all travelers (50 percent) plan to shop during the holiday which can be expected given Black Friday occurs during the holiday weekend.

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, free to members at AAA.com/ebooks. Choose from city titles, like Orlando, New York and the award-winning Las Vegas, as well as National Parks.

The free AAA Mobile app for iPhone and Android devices uses GPS navigation to help travelers map a route, find current gas prices and nearby member 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 Thanksgiving  Holiday Travel Forecast can be found in the additional resources box.

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.

AAA President & CEO Robert L. Darbelnet Announces 2012 Thanksgiving Holiday Travel Forecast

(Click Images to Enlarge)

Projected travel up 2.9 percent from Labor Day holiday weekend last year, highest travel volume expected since 2008 before the recession caused a retraction in Labor Day travel

ORLANDO, Fla., (August 21, 2012) – AAA Travel projects 33 million Americans will journey 50 miles or more from home during the Labor Day holiday weekend, a 2.9 percent increase from the 32.1 million people who traveled last year.  The total number of 2012 Labor Day holiday travelers is expected to reach a new post-recession high, and is the third increase in holiday travel this year, according to the AAA/IHS Global Insight 2012 Labor Day Holiday Travel Forecast.  AAA’s Memorial Day and Independence Day holiday travel forecasts projected increases of 1.2 percent and 4.9 percent, respectively. 

Despite a sluggish economy and recent rises in gas prices, the increase in expected Labor Day holiday weekend travelers is driven by improving consumer confidence compared to one year ago and Americans’ unwavering desire to travel.  The Labor Day holiday travel period is defined as Thursday, August 30 to Monday, September 3. 

Additional Resources

• Holiday Travel Safety video (to download, right click and select ‘save as’)
• Mode of Transportation graphics: Color or Black and White
• Labor Day gas prices graphics: Color or Black and White
• Labor Day Travel Forecast Report pdf
• AAA Leisure Travel Index

“In the absence of strong economic growth that might fuel a significant boost in travel volume, it is an encouraging sign that Americans continue to prioritize travel,” said Bill Sutherland, vice president, AAA Travel Services.  “Travel is still within America’s discretionary spending budget.”    

The health of the travel industry is dependent upon discretionary spending and growth in travel has a positive effect on employment and the overall economy.  In the first quarter of 2012, the U.S. Department of Commerce reported that 7.6 million jobs are supported by the travel and tourism industry.  The jobs total consists of 5.4 million (71 percent) direct tourism jobs and 2.2 million (29 percent) indirect tourism-related jobs.

Impact of household finances on travel plans

A survey of intended travelers found that 66 percent said their current financial situation would

not negatively impact their Labor Day holiday weekend travel plans.  Of the remaining 34 percent of travelers who said their current finances would impact their travel plans, 21 percent will economize in other areas, nine percent are planning to take a shorter trip, and the remaining four percent will travel by an alternate mode of transportation.  The group of surveyed travelers who reported their intent to economize in other areas plan to reduce spending on shopping and sightseeing and will stay with friends and relatives instead of reserving a hotel room.  Conversely, changes in the expected primary activities of travelers this Labor Day holiday include increases in entertainment like nightlife, sporting events, concerts and golf.         

Automobile travel up 3.1 percent  

Approximately 28.2 million people (85 percent of holiday travelers) will make their Labor Day holiday journey by automobile, considered the most convenient mode of travel for many Americans.  This is a 3.1 percent increase over the 27.3 million people who took to the nation’s roadways in 2011. 

Number of air travelers expected to increase by 3.7 percent, airfares decrease

Labor Day holiday air travel has been fairly consistent since the recession bounce back began for the travel industry in 2010.  About 2.55 million leisure travelers (eight percent of holiday travelers) will fly during the Labor Day weekend, a 3.7 percent increase over 2011 when 2.46 million traveled by air.  In 2010, 2.6 million chose to fly to their Labor Day vacation destinations which began the steady recovery from the decade-low 1.5 million air travelers in 2009. Airfares decreased four percent over last year with an average lowest round-trip rate of $197 for the top 40 U.S. air routes, according to AAA’s Leisure Travel Index. 

The remaining seven percent of Labor Day holiday travelers are expected to use other modes of transportation, including cruise ship, rail and bus travel accounting for 2.3 million Americans – a nominal 0.2 percent decrease over last year.            

Average travel distance increases as most travelers prefer shorter trips, spending up  

According to a survey of intended travelers, the average distance traveled by Americans during the Labor Day holiday weekend is expected to be 626 miles, up slightly from last year’s average 608 miles.  Despite the longer average travel distance, most holiday travelers (54 percent) will be taking shorter-distance trips, between 100 and 400 round-trip miles.  The increase in expected air travel is a contributing factor to the slight lift in the average travel distance as air trips typically span longer distances than automobile trips, many over 1,500 round-trip miles. 

Median spending is expected to be $749, a small increase over the $702 median spending of intended holiday travelers in 2011.

Travelers to experience increase in hotel rates, decrease in car rental rates

According to AAA’s Leisure Travel Index, Labor Day holiday hotel rates for AAA Three Diamond lodgings are expected to increase four percent from a year ago with travelers spending an average of $154 per night compared to $148 last year. Travelers planning to stay at AAA Two Diamond hotels can expect to pay six percent more at an average cost of $117 per night.  Weekend daily car rental rates will average $39, a ten percent decrease from one year ago.

Impact of gasoline prices on travel plans

National gas prices have fluctuated and been particularly sensitive to region variations throughout much of the year.  On April 5 and 6, motorists experienced a year-to-date peak average price of $3.94 per gallon for regular gasoline.  The current national average price of regular gasoline for August 20, 2012 is $3.72 per gallon, which is 22 cents less than the April peak and 14 cents more than last year’s price on August 20.      

Gasoline purchases are critical expenditures in most household budgets, yet 66 percent of intended holiday travelers said their current household finances would not negatively impact their Labor Day holiday weekend travel plans.  As the Labor Day holiday weekend approaches, increases in gas prices could cause some travelers to alter their plans.  Conversely, falling prices could spur last-minute travel increases. 

Barring any significant unforeseen events such as severe hurricanes, geopolitical incidents or dramatic nationwide price increases, gas prices are not expected to have a major impact on Labor Day holiday weekend travel. Historically, incidents that impact regional gas prices and regional travel have not impacted nationwide holiday travel.       

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, free to members at AAA.com/ebooks. Choose from city titles, like Orlando, New York and the award-winning Las Vegas, as well as National Parks.

The free AAA Mobile app for iPhone and Android devices uses GPS navigation to help travelers map a route, find current gas prices and nearby member 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 Boston-based economic research and consulting firm 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 Independence Day Holiday Travel Forecast can be found at NewsRoom.AAA.com.

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.

Average travel distance decreases significantly as holiday travelers economize by decreasing entertainment costs

WASHINGTON, D.C., (May 15, 2012) – AAA projects 34.8 million Americans will travel 50 miles or more from home during the Memorial Day holiday weekend, an increase of 1.2 percent – or 500,000 travelers – from the 34.3 million people who traveled one year ago. The Memorial Day holiday travel period is defined as Thursday, May 24 to Monday, May 28.

“The overall domestic economic picture continues to improve slightly, however, American consumers faced a new challenge this year as steadily increasing gas prices throughout the spring significantly squeezed many household budgets,” said AAA President and CEO Robert L. Darbelnet. “Americans will still travel during the Memorial Day holiday weekend but, many will compensate for reduced travel budgets by staying closer to home and cutting entertainment dollars.” 

Additional Resources

• 2012 Memorial Day Travel Forecast

Automobile adds to dominance as lead transportation choice, up 1.2 percent

Approximately 30.7 million people plan to drive to their destination, an increase of 1.2 percent from the 30.3 million who drove last year.  Almost nine out of ten holiday travelers (88 percent) will take to the nation’s roadways during the Memorial Day weekend keeping automobile travel in the traditional lead as the dominate mode of holiday travel transportation.

Impact of gasoline prices on travel plans

A survey of intended travelers found that 53 percent said recent increases in gasoline prices would not impact their Memorial Day holiday travel plans. Of the remaining 47 percent of travelers who said gas prices would impact their travel plans, nine percent are planning to take a shorter trip, four percent will travel by an alternate mode of transportation and 34 percent will economize in other areas. Those who intend to economize in other areas plan to reduce spending on entertainment (65 percent), stay at a lower priced hotel (34 percent), stay with friends and relatives instead of reserving a hotel room (31 percent) or stay in a hotel that includes value-added amenities like free breakfast and internet (27 percent).

National gasoline prices may have peaked in April despite seasonal highs in early spring when motorists experienced average price increases for all but four days in February and March. April experienced a full reversal as prices fell for 23 of 30 days during the month, helping to break a streak of 911 days since the national average price was lower than the previous year. The current national average price for a gallon of regular gasoline is approximately 25 cents lower than this time last year.

Number of air travelers expected to decline by 5.5 percent

More than 2.5 million leisure air travelers (over seven percent of holiday travelers) will fly during the holiday weekend, a 5.5 percent decrease from last year’s 2.7 million air travelers. The remaining 4.5 percent of holiday travelers are expected to travel by other modes, including rail, bus and watercraft.

Average travel distance significantly less than last year

According to a survey of traveler intentions, the average distance traveled by Americans during the Memorial Day holiday weekend is expected to be 642 miles, which is 150 miles less than last year’s average travel distance of 792 miles. With high gas prices squeezing consumers’ spending power this spring, consumers are responding by traveling shorter distances this Memorial Day holiday.

The decline in expected air travel is a factor in the travel distance decrease as fewer flying miles can be contrasted with the slight growth in automobile travel. Miles flown for weekend travel are typically longer than those driven. Last year, the shortest trips, those less than 150 miles, made up 19 percent of total travel compared to 21 percent this year, reinforcing the expectation that shorter trips are especially popular this Memorial Day weekend. Median spending is expected to be $702, only slightly more than the $692 median spending last year.

Change in income demographics of Memorial Day Travelers

The growth in Memorial Day holiday travel can be tied, in part, to a change in the income demographics of Memorial Day holiday travelers compared to last year.  Survey results reveal that the share of expected holiday travelers in the under $50K household income bracket has fallen five percent, from 31 percent to 26 percent.  The share of expected travelers in the $50K-$100K household income bracket dropped one percent.  Conversely, the share of travelers with household incomes over $100K increased six percent, from 30 percent to 36 percent.  The effect of higher gas prices is more significant on lower income households as fuel costs make up a larger share of overall spending.

Car rental rates drop, hotel rates rise

According to AAA’s Leisure Travel Index, hotel rates for AAA Three Diamond lodgings are expected to increase eight percent from a year ago with travelers spending an average of $160 per night compared to $148 last year. Travelers planning to stay at AAA Two Diamond hotels can expect to pay 10 percent more with an average cost of $120 per night. Weekend daily car rental rates will average $36, four percent ($2) less than last year.

AAA offers mobile travel planning resources

AAA’s digital tools for travel planning ‘on the go’ include eTourBook guides for 101 top North American destinations, free to members at AAA.com/ebooks. Choose from city titles, like Orlando, New York and the award-winning Las Vegas, as well as National Parks. They’re usable on the same devices travelers already bring along for the road — tablets and smartphones.

Free AAA apps for iPhone and Android devices use GPS navigation to help travelers map a route, locate nearby member discounts and find current gas prices. Travelers can learn about AAA apps and AAA Mobile Web at AAA.com/mobile.

Travelers can find thousands of AAA Approved and Diamond Rated hotels and restaurants using AAA’s digital travel planning tools or online 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 Boston-based economic research and consulting firm 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 Memorial Day Holiday Travel Forecast can be found at NewsRoom.AAA.com.

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.

WASHINGTON, D.C., May 20, 2010

Recent stock market volatility and the gulf oil spill could alter travel plans for some, but improved economic data should propel a sizeable increase in holiday vacations.

AAA today projected the number of Americans traveling on vacation this Memorial Day holiday weekend will increase 5.4 percent from 2009 with approximately 32.1 million travelers taking a trip away from home. Last year, 30.5 million Americans traveled during the same period.

“While the economy continues to be rocked by waves of occasional uncertainty, improved economic performance from one year ago should cause more Americans to take vacations this Memorial Day holiday weekend,” said Glen MacDonell, director, AAA Travel Services. “AAA travel agents are reporting double-digit increases in the percentage of travelers making advanced bookings for tours and cruises, hotel bookings via AAA.com are increasing and AAA’s many travel industry partners have reported improved business conditions this spring.”

MacDonell cautioned, “Increased travel can also mean reduced availability, especially in markets like central Florida where the opening of exciting new attractions are expected to make the area one the summer’s most popular destinations.” MacDonell’s best advice is to “talk to a travel agent to find the best package deals and be sure to jump on a bargain if you find one.”

AAA’s projections are based on economic forecasting and research by IHS Global Insight. The Boston-based economic research and consulting firm 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 2010 Memorial Day holiday forecast can be found at AAA.com/news.

Air and car trips to increase

Trips by auto are expected to increase in popularity with 87 percent or 28.0 million people reaching their destination by driving. This is an increase of 5.8 percent from last Memorial Day when 26.4 million travelers went by motor vehicle. This Memorial Day weekend AAA does not expect the price of gasoline to average more than $3.00 per gallon. Leisure air travel also is expected to grow slightly with 2.15 million holiday flyers expected. This would be an increase of 2.4 percent from one year ago when 2.1 million flew. Trips by other modes, including rail, buses and watercraft, will be the dominant means of travel used by 6 percent of all travelers.

Average spending will top $800 and average distance traveled will be 626 miles

The average distance traveled by Americans this Memorial Day holiday weekend is forecast to be approximately the same as one year ago, 626 miles vs. 620 in 2009, AAA reported. Median spending is estimated to be $809 this Memorial Day*. This is a sizeable reduction from one year ago, when Americans reported average spending plans of $1,052. Sixty-one percent of Americans will spend time with friends and relatives over the holiday.

Airfares will be unchanged, hotel rates remain a deal, and rental car rates will be lower

According to AAA’s Leisure Travel Index, air fares over the Memorial Day holiday weekend are expected to remain unchanged from last year as air passengers will pay a lowest average round-trip fare of $176 per ticket. Weekend daily car rental rates will drop 15 percent from an average of $43.30 in 2009 to $36.65. Hotel rates for AAA Three Diamond lodgings are expected to remain a bargain, but will decline only one percent from a year ago with travelers spending an average of $141.60 per night compared to $142.45 last year. Travelers planning to stay at AAA Two Diamond hotels will pay four percent less at an average cost of $99 per night.

As North America’s largest motoring and leisure travel organization, AAA provides nearly 52 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.