AAA Chicago: Labor Day Travel Remains Steady Amid Concerns about Affordability

AURORA, Ill., Aug. 29, 2007 -- Despite falling fuel prices, now around $2.76 per gallon nationally, Americans are still very concerned about the affordability of travel and so AAA expects travel over the Labor Day holiday weekend to be flat as the number of travelers holds steady from last year (with 0.2 percent growth).

AAA estimates that 34.6 million Americans will travel 50 miles or more from home this holiday, almost the exact same number that traveled last Labor Day. According to the Travel Industry Association (TIA), travelers' perception of higher costs for fuel, lodging and airfares have resulted in the small growth in Labor Day travelers from 2006.

"Labor Day weekend travel often slows down as kids head back to school," said Beth Mosher, spokeswoman for AAA Chicago. "This year, families appear to be concerned about the travel costs associated with an end of summer vacation, which may mean Americans aren't canceling previously planned trips but are not planning to travel more than they did last year."

Approximately 28.9 million travelers (83.5 percent of all holiday travelers) expect to go by motor vehicle, just under the 29 million who drove a year ago.

Although prices may vary by the weekend, currently in Illinois, the price of regular unleaded is $2.98 per gallon, which is one-cent lower than a year ago. In Indiana, a gallon of regular unleaded gasoline costs $2.86 per gallon, a decrease of 13 cents from last year.

Although this summer airlines have endured negative press about service and flight delays, 4.1 million (12 percent of holiday travelers) plan to travel by airplane, up 2.5 percent from the 4.0 million that flew over the last Labor Day holiday. Between Labor Day 2005 and 2006 we saw a decrease of 2.5 percent in the number of Americans traveling by air.

A projected 1.6 million vacationers (4.6 percent) will go by train, bus, or other mode of transportation, the same as a year ago.

AAA's Leisure Travel Index shows vacation costs remaining steady from this time last year. Hotel rates have increased, averaging 3 percent higher for a moderately-priced hotel room for the 20 top destinations used in the comparison. However, airfares have remained constant, while car rental rates have come down a welcome average of 3 percent from last year's prices.

"In order to make holiday traveling more affordable, American travelers should, as always, plan ahead in order to find the best airfares and hotel rates," said Mosher. "And even though gasoline prices have fallen over the past year, drivers will find that it's well worth identifying the cheapest gas stations along their route ahead of time."

AAA's Fuel Cost Calculator (FuelCostCalculator.com) helps travelers determine how much their drive trip will cost by factoring in the make and model of their car, and the distance to the final destination.

Another tip for travelers this weekend is to book hotels online, but know where to go to get the best deals. In a recent assessment of online travel-booking sites, AAA.com offered the best daily hotel rate on initial searches 64 percent of the time, compared to five of the top online travel agencies in North America. The most recent study, conducted in June, found hotel sites offered the lowest rate 61 percent of the time, followed by AARP, 25 percent; Expedia, Travelocity and Orbitz, 6 percent. The study tracked rates at 36 AAA Two, Three and Four Diamond properties throughout the U.S. and Canada.

The most Labor Day travelers will originate in the West with 9.1 million, followed by the Southeast with 8.1 million; Midwest, 6.4 million; Northeast, 6 million; and Great Lakes, 5.1 million.

The West is expected to produce the most holiday travelers by auto, truck or RV, with 7.4 million, followed by the Southeast with 6.6 million; the Midwest with 5.6 million; the Northeast with 4.8 million; and the Great Lakes with 4.5 million.

The West is also expected to produce the largest number of air travelers with 1.5 million, followed by the Southeast at 1.3 million; the Northeast will produce 500,000 air travelers, the Great Lakes 400,000 and the Midwest 300,000.

Cities and urban areas top the list of preferred destinations this holiday with 30.4 percent of travel volume. Oceans and beaches rank next, with 19.8 percent, followed by small towns/rural areas, with 16.5 percent. Theme and amusement parks can expect to see 11.1 percent of holiday travelers; followed by mountain areas, 9.2 percent; lakes, 4.5 percent; and state/national parks, 3.6 percent. Another 5 percent responded with other.

Research for holiday travel is based on a national telephone survey of 1,950 adults by the Travel Industry Association, which conducts special research for AAA.

AAA Chicago has represented roadway interests for motorists and pedestrians and serves as a leading advocate for various traffic safety and travel-related issues for more than a century.

For more information on any aspect of AAA Chicago's breadth of service including AAA's home, auto and life insurance products; travel-related services, AAA's Show Your Card & Save program; and/or any AAA membership service including emergency roadside assistance, please visit our Web site at http://www.aaa.com/ or call us toll-free at 1-866-YOUR-AAA (968-7222).