AAA Projects 1.2 Percent Increase in Memorial Day Travel as Americans Stay Closer to HomeMay 25th, 2012 | By Editorial Staff | Category: Spotlight
AAA projects 34.8 million Americans will travel 50 miles or more from home during the Memorial Day holiday weekend, an increase of 1.2 percent – or 500,000 travelers – from the 34.3 million people who traveled one year ago. The Memorial Day holiday travel period is defined as Thursday, May 24 to Monday, May 28.
“The overall domestic economic picture continues to improve slightly, however, American consumers faced a new challenge this year as steadily increasing gas prices throughout the spring significantly squeezed many household budgets,” said AAA President and CEO Robert L. Darbelnet. “Americans will still travel during the Memorial Day holiday weekend but, many will compensate for reduced travel budgets by staying closer to home and cutting entertainment dollars.”
Approximately 30.7 million people plan to drive to their destination, an increase of 1.2 percent from the 30.3 million who drove last year. Almost nine out of ten holiday travelers (88 percent) will take to the nation’s roadways during the Memorial Day weekend keeping automobile travel in the traditional lead as the dominate mode of holiday travel transportation.
A survey of intended travelers found that 53 percent said recent increases in gasoline prices would not impact their Memorial Day holiday travel plans. Of the remaining 47 percent of travelers who said gas prices would impact their travel plans, nine percent are planning to take a shorter trip, four percent will travel by an alternate mode of transportation and 34 percent will economize in other areas.
National gasoline prices may have peaked in April despite seasonal highs in early spring when motorists experienced average price increases for all but four days in February and March. April experienced a full reversal as prices fell for 23 of 30 days during the month, helping to break a streak of 911 days since the national average price was lower than the previous year. The current national average price for a gallon of regular gasoline is approximately 25 cents lower than this time last year.
According to a survey of traveler intentions, the average distance traveled by Americans during the Memorial Day holiday weekend is expected to be 642 miles, which is 150 miles less than last year’s average travel distance of 792 miles. With high gas prices squeezing consumers’ spending power this spring, consumers are responding by traveling shorter distances this Memorial Day holiday.
The growth in Memorial Day holiday travel can be tied, in part, to a change in the income demographics of Memorial Day holiday travelers compared to last year. Survey results reveal that the share of expected holiday travelers in the under $50K household income bracket has fallen five percent, from 31 percent to 26 percent. The share of expected travelers in the $50K-$100K household income bracket dropped one percent. Conversely, the share of travelers with household incomes over $100K increased six percent, from 30 percent to 36 percent. The effect of higher gas prices is more significant on lower income households as fuel costs make up a larger share of overall spending.
AAA’s projections are based on economic forecasting and research by IHS Global Insight. The Boston-based economic research and consulting firm 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. The complete AAA / IHS Global Insight 2012 Memorial Day Holiday Travel Forecast can be found at NewsRoom.AAA.com.