Fuel prices unlikely to deter Memorial Day travel – US auto group
The American Automobile Association (AAA) projects 34.9 million Americans will travel 50 miles or more from home during the approaching Memorial Day holiday weekend, a slight increase of 0.2% – or 100,000 travelers – from the 34.8 million people who traveled one year ago.
The Memorial Day holiday travel period is defined as Thursday, May 26 to Monday, May 30.
“Memorial Day travel experienced a gain of more than 14% in 2010, and this year we expect to add slightly to that gain due to an increase in air travel and an improvement in the overall domestic economic picture,” said AAA CEO Robert L. Darbelnet. “Some travelers will compensate for the higher fuel costs by cutting other areas of their travel budgets.”
Overwhelming majority of Americans to travel by automobile, but down slightly from last year
Approximately 30.9 million people plan to drive to their destination, a small decline from the 31 million who drove last year. In spite of gasoline prices more than a dollar per gallon higher than a year ago, automobile travel continues to be the dominant mode of transportation. Almost nine out of ten holiday travelers (88%) will take to the nation’s roadways during the Memorial Day holiday weekend. The national average price for regular gasoline is $3.91/gal, compared to $2.85/gal this time last year.
Impact of gasoline prices on travel plans
A survey of intended travelers found that six out of ten said rising gasoline prices would not impact their travel plans. Of the remaining four out of ten travelers who said rising gas prices would impact their travel plans, 70% will economize in other areas and the rest will take a shorter trip or travel by an alternate mode of transportation.
Number of air travelers expected to increase by 11.5 percent
Nearly 2.93 million leisure air travelers (8% of holiday travelers) will fly during the holiday weekend, an 11.5% increase from last year’s 2.63 million air travelers. The remaining three percent of holiday travelers are expected to travel by other modes, including rail, bus and watercraft.
Airfares, hotel rates and car rental rates all rise
Memorial Day holiday airfares are expected to be 14% higher than last year, the AAA said, with an average lowest round-trip rate of $201 for the top 40 US air routes. Hotel rates for AAA three-diamond lodgings are expected to increase 5% from a year ago, with travelers spending an average of $148/ night compared to $142 last year. Travelers planning to stay at AAA two-diamond hotels can expect to pay 10% more with an average cost of $109/night. Weekend daily car rental rates will average $38, just $1 higher than last year.
The complete AAA / IHS Global Insight travel forecast can be found here.
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