VIRGINIA BEACH, Va., (August 26, 2014) – 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. Across Virginia, 964,305 people are expected to travel over the long holiday weekend. While this is a small increase (0.5%) over last year, it represents a 10.1% increase and the highest number of potential travelers since 2009. The Labor Day holiday travel period is defined as Thursday, August 28th until Monday, September 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 eight percent of travelers (2.65 million) will travel by air, a one percent increase from last year.
- Travelers will encounter airfares just two percent higher than last year and daily car rental costs that remain consistent at $51.
- Hotel rates at AAA Two Diamond hotels are nine percent higher than last year and Three Diamond hotels are six percent more.
“As the economy makes modest gains, more Americans are joining the labor force this year,” said Georjeane Blumling, Vice President of Public Affairs for AAA Tidewater Virginia. “With Labor Day symbolizing the American workers’ contributions to the strength and prosperity of our country, it’s only fitting that millions are choosing to celebrate this positive direction with an all-American road trip.”
Consumer spending is continuing to rise in spite of stagnant income growth. 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.
“This year, Americans are more optimistic about their financial situation,” continued Blumling. “Consumer spending continues to outpace disposable income, indicating that Americans are comfortable using their credit cards to take one last summer vacation this year.”
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 up to the holiday weekend compared to recent years, which will allow travelers to allocate more of their budgets towards travel expenses. The current price of gas is $3.43 compared to $3.59 on Labor Day last year. AAA provides the latest gas prices for the nation, states and metro areas at FuelGaugeReport.AAA.com. In Virginia, as expected the dominate mode of travel with be by automobile with 841,634 taking to the road, marking a modest 0.6% increase from last year.
Airfare and hotel costs rise, car rental fees flat
According to AAA’s Leisure Travel Index, hotel rates for AAA Three Diamond lodgings are expected to increase six 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 nine 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 two 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’s digital tools for travel planning ‘on the go’ include eTourBook guides for tablets and smartphones, available free to members at AAA.com/ebooks. Choose from 101 top North American destinations including cities, like the award-winning Las Vegas title, regions, like 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 and find discounts, book a hotel and access AAA roadside assistance. Members using the iPad version can access interactive Top Destinations travel guides for 10 popular cities. Travelers can learn more at AAA.com/mobile.
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 One to
Five Diamonds help travelers find the right match for amenities and services.
AAA’s projections are based on economic forecasting and research by IHS Global Insight. The Colorado-based business information provider teamed with AAA in 2009 to jointly analyze travel trends during the major holidays. AAA has been reporting on holiday travel trends for more than two decades. More information including an infographic for the AAA / IHS Global Insight 2014 Labor Day Travel Forecast can be found here.
As part of North America’s largest motoring and leisure travel organization, AAA Tidewater Virginia provides its more than 325,000 members with travel, insurance, financial and automotive-related services. Since its founding AAA Tidewater Virginia has been a leader and advocate for the safety and security of all travelers. For more information, visit AAA.com and follow us on Twitter at Twitter.com/AAATidewaterVA or on Facebook at facebook.com/AAATidewaterVirginia