Labor Day Travel Forecast
August 27, 2014 — Get ready for crowded highways this weekend.
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, August 28 to Monday, September 1.
In Illinois, 1.85 million people will be traveling for the holiday weekend, which is a .9 percent increase from 2014. Of those travelers, just over 1.6 million will be driving (a .8 percent increase compared with 2013) and just over 71,000 will be flying to their destination (a 2 percent increase from 2013). Gas prices across Illinois are on average $3.56, down slightly from $3.63 in 2013.
In Indiana, just over 816,000 people are expected to travel, which is a 1.6 percent increase from 2013. Of those, 727,000 are expected to travel by auto (1.5 percent increase) and about 31,000 by air (2.7 percent increase). In Indiana, gas prices are on average $3.40 per gallon, down from $3.50 this time last year. The average price nationally for gas is $3.45.
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 AAA Chicago spokesperson Beth Mosher. “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 Mosher. “Consumer spending continues to outpace disposable income, indicating that Americans are comfortable using their credit cards to take one last summer vacation this 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’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.
Source: Chicagoland AAA