AAA Projects Slight Decrease in Memorial Day Holiday Travel

Record fuel prices and tough economic times alter travel plans for some Americans

Helena, Mont. – AAA projects the number of Americans traveling during the Memorial Day holiday will drop slightly compared to the previous year. AAA estimates that 37.87 million Americans will travel 50 miles or more from home this holiday, a decrease of nearly 360,000 travelers (0.9 percent) from last year’s total of 38.23 million.

Nearly 31.7 million Americans (83 percent of all holiday travelers) are expected to travel by automobile, a one percent decrease from the approximately 32 million people who drove a year ago.

Almost 4.35 million (11 percent of holiday travelers) plan to fly this holiday weekend; a decrease of 0.5 percent from the 4.37 million who took to the skies last year.  About 1.8 million intend to travel by train, bus or other mode of transportation.

“Many Americans are feeling a financial pinch this holiday weekend from record high gasoline prices and other factors in the economy,” said AAA Spokeswoman, Denice Harris. “Despite the small decrease, we will still see a significant number of people traveling this weekend. More than 12 percent of the U.S. population will be celebrating the Memorial Day weekend away from home.”

Across much of the country, motorists driving to their Memorial Day holiday destinations will once again encounter record-high gasoline prices. The national average for self-serve regular is $3.776 a gallon. That is 39 cents more than one month ago and 67 cents more than this time last year.

Yesterday in Alaska, the average price per gallon for self-serve regular hit above the $4 mark; making Alaska the first state to do so.  Today, the state-wide average is $4.02; 37.5 cents higher than one month ago and a whopping $1.06 higher than a year ago

In Montana, the average for self-serve regular is $3.656; 25 cents higher than one month ago and 49 cents higher than this time last year.

In Wyoming, the average for self- serve regular is a bargain at $3.56; 30 cents higher than one month ago and 50 cents higher than this time last year.

“Countless businesses large and small across the country depend on summer leisure travelers for a large portion of their annual revenue. This summer high gasoline prices appear to be dampening American’s intent to travel. If a trend toward higher gas prices and fewer travelers were to continue, it could eventually impact travel-dependent companies that provide employment opportunities and tax revenues in almost every city and town in America,” Harris said. 

According to AAA’s Leisure Travel Index, air fares over the Memorial Day holiday weekend are expected to rise eight percent over last year as air passengers will pay an average $179. Car rental rates will climb significantly higher with consumers paying an average of $45 per day compared to $31 a year ago, an increase of 45 percent. Hotel rates for AAA 3 Diamond hotels are expected to be seven percent less than last year with travelers spending an average of $162 per night. However, travelers planning to stay at AAA 2 Diamond hotels will pay an average of $112 per night, nine percent more than a year ago.

The greatest number of automobile travelers this Memorial Day holiday weekend will originate in the West with 7.6 million travelers, followed by the Southeast with 6.8 million; Midwest, 6.7 million; Northeast, 5.8 million; and Great Lakes, 4.8 million.

The West is expected to produce the largest number of air travelers with 1.37 million, followed by the Midwest with 1.18 million; Southeast, 870,000; Northeast, 545,000; and Great Lakes, 384,000.

Research for Memorial Day weekend holiday travel projections are derived from Travel Industry Association (TIA)’s Holiday Travel Forecast Model. The model was developed based on consumer travel intentions and TIA’s quarterly travel forecast data. The travel intentions data are collected through an online survey of over 2,000 U.S. adults nationwide, supplemented by an additional 6,500 Americans surveyed from the top 10 states of travel origin in the United States. Historical travel volume and other economic data such as GDP, disposable income, employment and travel costs such as fuel price are also incorporated into the model. Analysis of the data and the forecasts are produced by the Travel Industry Association, which conducts special research for AAA. 

AAA MountainWest Club is dedicated to providing its over 160,000 members in Alaska, Montana and Wyoming with travel, insurance, financial and auto-related services.  A fully taxpaying, not for profit corporation, AAA MountainWest, Inc. works for the improvement of motoring and traveling conditions and is a leader for travel, civic and safety issues. AAA can be visited on the Internet at AAA.com.

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