A record number of Americans are expected to take to the skies or hit the road as the holiday season reaches its end. And that’s good news for businesses ranging from hotels and restaurants to gas stations and convenience stores.
According to AAA, more than 119 million Americans are expected to travel at least 50 miles from home from December 21 through January 1.
If this holds true, the number of U.S. holiday travelers will beat the previous record set in 2019 by 64,000.
What is behind this increase in travel volume? AAA points to:
- Travel volume is being driven by consumer spending as inflation continues to moderate.
- Strong employment continues to drive rising wages and with inflation leveling off, consumers are expected to spend nearly 5% more than last year as incomes rise at a similar level.
- Economic growth continues to remain steady, with fourth quarter real GDP growth expected to increase by 2% compared to last year.
How are people traveling this year?
By car: AAA predicts that 2.5 million more people will take to the roads this year. Nationwide, an estimated 107 million will take a road trip of 50 miles or more. That’s just shy of the record of 108 million road travelers set in 2019. Nearly 90% of holiday travelers will drive to their destinations, making it the most popular way to travel.
AAA car rental partner Hertz says Denver, Las Vegas, Los Angeles, Miami, Oahu, Orlando, Phoenix and Tampa are the cities displaying the highest rental demand for the holidays. The busiest car pick-up days are expected to be Friday, Dec. 20, and Saturday, Dec. 21. The busiest time for rental returns is expected to be the weekend and Monday after Christmas. The average length of rental is one week.
By Air: Nationally,AAA expects air travel to set a new record this holiday season. Nearly 7.9 million Americans are forecast to take at least one domestic flight. That number surpasses the previous record of 7.5 million air travelers last year.
These flyers will be spending more, too. AAA booking data shows flights are 4% more expensive this holiday season compared to last year. The average domestic ticket is $830. International flights are 13% more expensive, averaging $1,630 a ticket, according to AAA.
By Other Modes: The number of Americans traveling by bus, train and cruise this holiday season is up nearly 10% compared to last year. AAA expects 4.47 million people will travel by other modes. That number is the highest it’s been in 20 years.
Cruise bookings out of domestic ports are up 37% compared to last holiday season.
And when these revelers are traveling? Expect them to spend plenty, whether they are stopping on the road for a meal, buying souvenirs or gifts at the airport or booking nights in hotels.
