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High Gas Prices Expected To Dampen Memorial Day Travel

Travel industry feels pinch as consumers pull back

By Joe Benton
ConsumerAffairs.com

May 15, 2008
Fewer motorists may take to the nation's highways this Memorial Day Weekend, thanks to record-high gas prices and an uncertain economy. 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 from last year's total of 38.23 million.

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

Almost 4.35 million plan to travel via airplane; 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," said AAA President and CEO Robert L. Darbelnet. "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 $3.78 a gallon. That is 39 cents more than one month ago and 68 cents more than this time last year.

"Countless businesses large and small across the United States depend on the summer leisure traveler for a large portion of their annual revenue," Darbelnet said. "This spring high gasoline prices appear to be dampening our society's intent to travel. If a trend toward higher gas prices and fewer travelers were to continue, it would eventually harm travel-dependent companies that provide employment opportunities and tax revenues in almost every city and town in America."

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.

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