Decrease in 4th of July Travelers Predicted by AAA

Gas prices were sweet there for a while. I don't know about you and your town, but here in and around Middletown, Ohio I saw gas prices drop to as low as $3.25 a gallon. However, that sweetness was short-lived as the Fourth of July weekend approached. I literally saw gas increase at least $0.20 in a matter of hours towards the middle of this week and it appears that I'm not the only one as AAA predicts nearly one million fewer people will be traveling this 4th of July thanks to higher gas prices and increased air fares.

According to AAA, travel will decrease by 2.5%, with roughly 39 million Americans traveling 50 miles or more from home during the long weekend that begins today and ends on Monday, July 4th according to Jim Lardear, a spokesman for AAA. This number is down roughly one million from the 40 million travelers observed last year. "AAA is projecting a slight decline in the number of Independence Day travelers, mainly due to fuel prices being about one dollar higher than last year," Lardear stated. "Increased fuel costs also are responsible for a shift in demographics of the typical Independence Day traveler, as higher prices impact lower income households more significantly."

Last year 41% of those with a household income of $50,000 or less traveled on Independence Day. That number is expected to drop to 33% for this year while the number of households making $100,000 or more is expected to increase from 26% to 35% according to Lardear. Even though fewer travelers are expected to load up the car and hit the road this year, PennDOT will stop all maintenance and construction projects to allow smooth sailing for those fortunate enough to make it out of the house.

I am one of the lucky (or unlucky depending on your outlook) to be traveling this weekend. I am headed on a two-hour car ride to Columbus, Ohio so hopefully the gas prices don't eat up my cash too much. I suppose I can always give up food for gas.

Source: phillyBurbs.com - AAA projects fewer people to travel on 4th of July

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What You Need to Know About Traveling for Thanksgiving

According to recent reports released last Tuesday, an improving economy is behind an expected surge in travelers for Thanksgiving. According to numbers estimated by AAA as well as IHS Global Insight, somewhere around 42.2 million people will travel anywhere from 50 miles away or more come next Thursday for Thanksgiving. That is a lot of people. In fact, it is an 11% increase from the amount of travelers seen last year, which was somewhere around 37.9 million who traveled during the 5-day break.

AAA and IHS Global Insight have based their predictions on signs of an improving economy which includes a 2.2% gain in gross domestic product since Thanksgiving 2009. The organizations are also using the GDP growth as well as signs that many consumers are knocking off their debt as indications that more of these people will clutter highways and airports for Thanksgiving.

Over the last two years, Thanksgiving travel has dropped to a historical low. Travel last year only rose a pathetic 0.2% from 2008 when the number of travelers dropped a dramatic 25%. In most cases, people will be traveling by car which makes a near 94% of all Thanksgiving travel. A 12% increase in highway traffic is also predicted to occur compared to last year's numbers.

In an unfortunate event, gas prices have increased by $0.24 per gallon over the last year. However, AAA believes that the increase "is not sizable enough to discourage travel." AAA also stated, "Moreover, the increase in gasoline prices is expected to be offset by the healthier economic positions of households this holiday relative to last year."

Only about 4% of travelers this Thanksgiving will be traveling by air which includes a projected increase of 3.5% in air travel. This increase, according to AAA, is "based on improvements in the airline industry and its recent increases in capacity." If this is true, then it will be a distinct change in airline travel which has plummeted in recent years. However, these statistics do not take into consideration the number of people who may be deterred from flying due to the increased airport security including the full body scanners that have recently been put in place.

An increase in holiday travel is a good sign that we may be coming out, ever slowly mind you, of this economic recession we seem to have fallen into. While there has been an increase in Thanksgiving travel, I think the amount of Christmas travelers is going to be a true sign of how far out of this economic slump we truly are.

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