Fuel costs park cars on holiday
From our weekly issue dated May 21, 2008
AAA projects that the number of Americans traveling during the Memorial Day holiday will drop this year compared to 2007.
AAA estimates that 37.87 million Americans will travel 50 miles or more from home on Memorial Day, Monday, May 26, a decrease of nearly 360,000 travelers (0.9 percent) from last year’s total of 38.23 million.
It’s predicted that nearly 31.7 million Americans (83 percent of all holiday travelers) will travel by automobile, a 1 percent decrease from the approximately 32 million people who drove a year ago.
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Nearly 4.35 million (11 percent of holiday travelers) plan to fly during the holiday weekend; a decrease of 0.5 percent from the 4.37 million who took to the skies last year. Approximately 1.8 million intend to travel by train, bus or other mode of transportation.
“Many Americans are feeling the financial pinch from record-high gas prices and a slowing economy,” said Marie Dodds, oublic affairs director for AAA Oregon/Idaho. “But despite the small decrease, millions of people are still traveling this weekend,” she said. “More than 12 percent of the U.S. population will be celebrating the Memorial Day weekend away from home.”
Those driving to their Memorial Day destinations will encounter record-high gasoline prices. As of late last week, the national average for regular unleaded was $3.78 per gallon, the same as the Oregon average. A year ago, the national average was $3.10, while the average in Oregon was $3.41.
Six of 10 (59 percent) American currently planning a trip with their car, truck or SUV this summer will not change their travel plans despite additional increases in the price of gasoline. Among the 41 percent of respondents who stated that their plans would change if gas prices continue to rise, the greatest percentage would simply drive a shorter distance to their vacation destination.
According to AAA’s Leisure Travel Index, it’s anticipated that air fares during the Memorial Day holiday weekend will rise 8 percent above prices 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 Three Diamond hotels are pegged to be 7 percent less than last year with travelers spending an average of $162 per night. However, travelers planning to stay at AAA Two Diamond hotels will pay an average of $112 per night, 9 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.
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The West likely will 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 more than 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 also are incorporated into the model. Analysis of the data and the forecasts are produced by TIA, which conducts special research for AAA.
Those traveling by car this Memorial Day can estimate the fuel cost of their trip by using Fuel Price Finder at http://aaa.opisnet.com/index.aspx. Travelers can access the locations and prices for more than 100,000 gas stations across the country in order to find cheapest fuel along their route.
