MARYLAND – AAA Travel projects 34.7 million Americans will journey 50 miles or more from home during the Labor Day holiday weekend, the highest volume for the holiday since 2008 and a 1.3 percent increase over 2013.
Nearly 86 percent of travelers (29.7 million) will celebrate the holiday with a final road trip before summer comes to a close and children head back to school. The Labor Day holiday travel period is defined as Thursday, Aug. 28 to Monday, Sept. 1.
Highlights from 2014 Labor Day Travel Forecast include:
•Historically, when Labor Day weekend begins in August, Americans have shown a higher tendency to travel.
•Consumer spending has surpassed income growth, indicating that Americans are willing to take on debt to finance a vacation.
•Automobile travel will increase by 1.4 percent this year, with 29.7 million travelers hitting the road.
•Nearly 8 percent of travelers (2.65 million) will travel by air, a one percent increase from last year.
•Travelers will encounter airfares just 2 percent higher than last year and daily car rental costs that remain consistent at $51.
•Hotel rates at AAA Two Diamond hotels are 9 percent higher than last year and Three Diamond hotels are 6 percent more.
“Despite stagnant income growth and a modest economic recovery, consumers continue to remain enthusiastic about traveling and are willing to pull out their credit cards to pay for the last holiday weekend trip of the summer,” said Ragina Cooper-Averella, manager of Public and Government Affairs for AAA Mid-Atlantic.
Consumer spending continues to rise:
In the third quarter of this year spending is expected to increase 3.8 percent year-over-year, while disposable personal income is only expected to increase 1.4 percent. Reliance on credit cards, rather than increasing income, is fueling holiday travel spending this year. While economic growth is slow, consumers are feeling more comfortable taking on debt.
Travelers likely to pay lower gas prices for Labor Day:
Most U.S. consumers are paying the lowest gas prices for early August since 2010. AAA expects gas prices to have little impact on the number of people traveling for Labor Day, though lower prices could help make travel more affordable. Barring a major development, such as a Gulf Coast hurricane, prices are likely to remain relatively low leading into the holiday weekend compared to recent years, which will allow travelers to allocate more of their budgets toward other travel expenses. As of Aug. 20, the national average price of gas was $3.44 compared to $3.59 on Labor Day last year.
According to AAA’s Leisure Travel Index, hotel rates for AAA Three Diamond lodgings are expected to increase 6 percent from one year ago with travelers spending an average of $171 per night compared to $161 last year. The average hotel rate for AAA Two Diamond hotels has risen 9 percent with an average cost of $125 per night.
Weekend daily car rental rates will average $51, the same as last year. Airfares have risen 2 percent with the average round-trip, discounted fare for the top 40 U.S. routes costing $219, up from $214 last year.
AAA offers digital travel planning resources:
AAA offers digital tools for travel planning with many available to non-members as well. 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 1-5 Diamonds help travelers find the right match for amenities and services.
Resources ‘on the go’ include eTourBook guides for tablets and smartphones, available free to members at AAA.com/ebooks. Members can choose from 101 top North American destinations including cities such as Las Vegas, regions including Wine Country, and National Parks.
The free AAA Mobile app for iPhone, iPad and Android offers GPS navigation to help travelers map a route, find current gas prices, book a hotel, and for members find discounts and access AAA roadside assistance. Additionally, members using the iPad version can access interactive Top Destinations travel guides for 10 popular cities. Travelers can learn more at AAA.com/mobile.
Nearly 86 percent of travelers (29.7 million) will celebrate the holiday with a final road trip before summer comes to a close and children head back to school. The Labor Day holiday travel period is defined as Thursday, Aug. 28 to Monday, Sept. 1.
Highlights from 2014 Labor Day Travel Forecast include:
•Historically, when Labor Day weekend begins in August, Americans have shown a higher tendency to travel.
•Consumer spending has surpassed income growth, indicating that Americans are willing to take on debt to finance a vacation.
•Automobile travel will increase by 1.4 percent this year, with 29.7 million travelers hitting the road.
•Nearly 8 percent of travelers (2.65 million) will travel by air, a one percent increase from last year.
•Travelers will encounter airfares just 2 percent higher than last year and daily car rental costs that remain consistent at $51.
•Hotel rates at AAA Two Diamond hotels are 9 percent higher than last year and Three Diamond hotels are 6 percent more.
“Despite stagnant income growth and a modest economic recovery, consumers continue to remain enthusiastic about traveling and are willing to pull out their credit cards to pay for the last holiday weekend trip of the summer,” said Ragina Cooper-Averella, manager of Public and Government Affairs for AAA Mid-Atlantic.
Consumer spending continues to rise:
In the third quarter of this year spending is expected to increase 3.8 percent year-over-year, while disposable personal income is only expected to increase 1.4 percent. Reliance on credit cards, rather than increasing income, is fueling holiday travel spending this year. While economic growth is slow, consumers are feeling more comfortable taking on debt.
Travelers likely to pay lower gas prices for Labor Day:
Most U.S. consumers are paying the lowest gas prices for early August since 2010. AAA expects gas prices to have little impact on the number of people traveling for Labor Day, though lower prices could help make travel more affordable. Barring a major development, such as a Gulf Coast hurricane, prices are likely to remain relatively low leading into the holiday weekend compared to recent years, which will allow travelers to allocate more of their budgets toward other travel expenses. As of Aug. 20, the national average price of gas was $3.44 compared to $3.59 on Labor Day last year.
According to AAA’s Leisure Travel Index, hotel rates for AAA Three Diamond lodgings are expected to increase 6 percent from one year ago with travelers spending an average of $171 per night compared to $161 last year. The average hotel rate for AAA Two Diamond hotels has risen 9 percent with an average cost of $125 per night.
Weekend daily car rental rates will average $51, the same as last year. Airfares have risen 2 percent with the average round-trip, discounted fare for the top 40 U.S. routes costing $219, up from $214 last year.
AAA offers digital travel planning resources:
AAA offers digital tools for travel planning with many available to non-members as well. 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 1-5 Diamonds help travelers find the right match for amenities and services.
Resources ‘on the go’ include eTourBook guides for tablets and smartphones, available free to members at AAA.com/ebooks. Members can choose from 101 top North American destinations including cities such as Las Vegas, regions including Wine Country, and National Parks.
The free AAA Mobile app for iPhone, iPad and Android offers GPS navigation to help travelers map a route, find current gas prices, book a hotel, and for members find discounts and access AAA roadside assistance. Additionally, members using the iPad version can access interactive Top Destinations travel guides for 10 popular cities. Travelers can learn more at AAA.com/mobile.