AAA: First Increase in Labor Day Travel Since Recession-Driven Decline

The below information came from a AAA Chicago press release.

AAA Travel is projecting 34.1 million Americans will travel 50 miles or more from home during the upcoming Labor Day holiday, which marks a 4.2 percent increase from the 32.7 million people who traveled last year, according to a AAA press release.   

The total number of 2013 Labor Day holiday travelers is expected to reach a new post-recession high. The anticipated increase in holiday travel is predominantly due to increased consumer spending and the improving housing market. 

The Labor Day holiday travel period is defined as Thursday, August 29 to Monday, September 2.
 
In Illinois, 1.9 million people will be traveling for the holiday weekend, which is a 3.8 percent increase from 2012.

Of those travelers, just over 1.7 million will be driving—a 3.8 percent increase compared with 2012—and just over 70,000 will be flying to their destination—a 2.1 percent increase from 2012. 

Gas prices across Illinois are on average $3.63, down from $4.03 in 2012.
 
“AAA is forecasting a lift in Labor Day travel this year due to the increasingly positive economic outlook and optimism in the housing market,” said Brad Roeber, AAA Chicago Regional President, in the news release.  “For many Americans, their home is also their biggest asset, as home prices improve in many parts of the country more families are feeling comfortable about traveling this Labor Day holiday.”

Highlights from 2013 AAA Labor Day Holiday Travel Forecast include:

• Labor Day holiday travelers to total 34.1 million, an increase of 4.2 percent from the 32.7 million who traveled last year
• Eighty-five percent of travelers (29.2 million) to travel by automobile, an increase of 4.3 percent  from 28 million last year
• Holidayair travel expected to increase nearly three percent to 2.61 million.
• The largest share of travelers (46 percent) will depart on Friday, August 30
• Monday, September  2, is the most popular date of return for holiday trips with 43 percent planning to return that day
• The average traveler is expected to travel a round-trip distance of 594 miles and spend $804

“As schools across the nation usher in their next session of students, the Labor Day holiday provides families with the opportunity for one final extended summer weekend getaway,” said Roeber in the news release. “AAA reminds drivers as they head out for the holiday and the school year is beginning that safety should remain top of mind. It is important to remain distraction-free and keep their mind on the task of driving.”
 
August 30 busiest travel day as travelers take full advantage of extended weekend

The largest share of travelers (46 percent) on a single day will depart on August 30 and the largest share will return on Monday (43 percent). Eighty-five percent intend to return from their Labor Day trip on Monday, Tuesday, or later.
 
Average travel distance decreases, spending up slightly

According to the survey of intending travelers, the average distance traveled by Americans during the Labor Day holiday weekend is expected to be 594 miles, which is 32 miles less than last year’s average of 626 miles. Median spending during the Labor Day holiday weekend is expected to grow to $804, compared to $749 last year.  

Travelers expect to spend 24 percent of their budget on transportation and lodging and 21 percent on food and beverages. 

During the holiday weekend the most popular activities will be dining (57 percent), visiting with friends/family (46 percent) and shopping (43 percent).
 
Car rental rates and airfares rise, hotel rates see slight increase for mid-range hotels

According to AAA’s Leisure Travel Index, weekend daily car rental rates will average $51, 32 percent more than last year’s average of $39. Airfares increased four percent year-over-year, with an average lowest round-trip rate of $214 for the top 40 U.S. air routes compared to $205 last year. 

Hotel rates for AAA Three Diamond lodgings are expected to increase four percent from one year ago with travelers spending an average $161 per night compared to $154 last year. The average hotel rate for AAA Two Diamond hotels are expected to drop two percent with an average cost of $115 per night.
 
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. The complete AAA / IHS Global Insight Labor Day 2013 Forecast can be found here.